2013 1Q IFTA Late Return Fee Notice

Enclosed in your IFTA 2013 1Q return is a notice concerning an increase to the interest rate charged on late IFTA returns. EFFECTIVE July 1, 2013, an amendment to the International Fuel Tax Agreement (IFTA) goes in effect that will change the interest calculation for any IFTA tax return filed late.

For a fleet based in a US jurisdiction, interest shall be set at an annual rate of two (2) percentage points above the underpayment rate established under Section 6621(a)(2) of the Internal Revenue Code, adjusted on an annual basis on January 1 of each year.

For example, if the:

IRS Underpayment Rate = 3%

IFTA Annual Interest Rate = 5%

Interest shall accrue monthly at 1/12 this annual rate.
Please contact Logistec/TTS with any questions regarding the new IFTA late return notice.