Like most busy truckers, you lose track of time, and before you know it, IFTA reports are due again. If you’ve waited until the last minute to file, you’ll rush through the report and this can result in costly mistakes. So, IFTA reporting should be at the top of your priority list, not only for your benefit but for the benefit of your customers as well. Here’s what you should know about delinquent IFTA reports and unpaid fuel use taxes.
What Can Happen if Your IFTA License is Revoked?
If your IFTA license is revoked, the customers you service must find another company to meet their shipping needs until you’re back on the road. Most likely, you won’t get those customers back, and your reputation suffers. But, your business will suffer in other ways as a result of IFTA delinquency:
- Delinquent IFTA penalties are $50 or 10% of the net tax liability, whichever is greater.
- Late or unpaid taxes Increase the chances of an audit.
- Fines of up to $5,000 are possible if the auditor determines you intended to commit fraud by not filing. Criminal prosecution is also possible.
- If your license is revoked, you’ll have to pay even more fees to reinstate the license.
- Unpaid or underpaid taxes accrue interest starting the month after receiving the original penalty until the tax is paid in full.
IFTA reports can be overwhelming and take up a lot of your valuable time. So, you may try to put it off as long as possible or cut corners. You’re not alone. Many truckers make unintentional and intentional mistakes on IFTA reports. But, you should always avoid those if possible. Here are five of the most common mistakes you should steer clear of:
5 Common Mistakes Truckers Make on IFTA Reporting
As a trucker, time is your most valuable resource. It’s easy to find yourself wondering where the day went and how to finish up the things you didn’t get done. But, the last thing you want to do is rush through your IFTA report. Here are some of the mistakes many truckers make in the interest of saving time:
- Missing the deadlines. IFTA reports are due four times a year (quarterly). The first quarter of 2021 is due by April 30, the second quarter is due by August 2, and the third quarter is due by November 1. Finally, the fourth quarter is due by January 31.
- Estimating mileage. Incorrect fuel and mileage calculations on your report can raise questions that may lead to an audit, fines, and penalties.
- Failure to record personal miles. This mistake can cause gaps in your calculations that can result in discrepancies that raise red flags and lead to an audit.
- Not filing a return. Even if you did not operate during the quarter, you need to file an IFTA quarterly report.
- Ignoring odometer problems. Faulty odometers can result in inaccurate mileage data that can skew your fuel tax calculations.
Clearly, there are many ways to mess up on IFTA reporting. Why not let TruckingOffice take care of these annoying details so you can spend more time building your business?
How TruckingOffice Helps You Maintain IFTA Compliance
With our TMS, all you need to do is enter fuel and load information. Our system uses the data to calculate your IFTA and IRP taxes and fees. The reports are always on time and accurate, so you won’t have to worry about fines or penalties.
You owe it to yourself and your company to sign up for this free trial of our TMS. You’ll be impressed with the many ways our system will help you succeed in the trucking industry.