10 Common Mistakes in IFTA Filings: How to Avoid Penalties

Filing an IFTA report is an easy task, but it takes your full attention and accurate report keeping.

It is simple on paper, record all your mileage and fuel purchases across the states and provinces and submit a return through your base jurisdiction.

In reality, it is time-consuming (if you have multiple trucks) and requires extra attention for not missing a single detail and getting fined.

The challenge here is not just the time; it’s the accuracy. Small mistakes like missing receipts, miscalculated mileage, or late filing can lead to fines, interest charges, or worse, an audit. That’s why having the most common IFTA filing mistakes under your hand and knowing how to avoid them is essential for any fleet that wants to stay compliant and penalty-free.

Why Accuracy Matters in IFTA Filings

Accuracy is one of the most important things when filing reports, but for IFTA, you need to double the amount.

Even small errors can cause penalties, extra bills, or an IFTA audit. All of this costs extra time and money. Getting it right the first time protects both your finances and operating authority.

So, let’s find out why accuracy matters this much.

Financial Penalties and Interest

Late filings, underpayment, incorrect returns. These are typically equal to $50 or 10% of the unpaid tax penalty, whichever is greater. Furthermore, some jurisdictions may charge monthly interest or additional fees.

Audit Exposure and Adjustments

Jurisdictions audit carriers from time to time to verify records with IFTA filings. If they find differences, some adjustments may be implemented. For example:

• They can refuse to credit fuel purchases when the checks are not full.
• They can set a low default MPG on vehicles whose records are not what they need to be, which, in turn, raises your taxes.
• They can reduce the amount of mileage credits allowed or disallow the unreported miles.

Suspension or Revocation of IFTA Privileges

If you keep not following the rules, you might end up with your IFTA license being suspended or revoked, which would seriously affect the business and your ability to transport from state to state or provinces.

Record-keeping

Keeping track of records is a must. As a carrier, you are required to keep the records, like fuel logs and travel distance, for a specific duration, usually four years from the due date of the return. 

Reputational and Operational Risk

Mistakes may damage your reputation with regulators, customers and partners. Neglectfulness can lead to business problems, legal issues, or inspections.

Common Mistakes in IFTA Filings

As we recommended earlier, checking your mileage numbers and fuel reports and making sure there and no potential errors made are the key. But what if you accidentally put 1 instead of 7 or 13 instead of 31? This could be a potential mistake, so, we gathered top common filing errors below.

1. Filing IFTA Report Late or Forgetting to Report

IFTA filings are due quarterly. Some carriers either miss it or provide an incomplete report if they had no operations or no taxable miles, thinking it’s not needed. 

However, IFTA requires a “zero” return if there is no data. Late IFTA reports can cause a fine, $50 or 10% of the net tax liability, whichever is greater and potentially result in an audit (much worse than the fine for some carriers). 

Official IFTA deadlines: 

Missing one of these dates can really put your business at risk.

What to do: Keep a calendar reminder or trust IFTA filing services to do it on time. 

2. Estimated Fuel Usage or Mileage Instead of Exact Data

Both IFTA and WDT (Weight Distance Taxes) depend on accurate data. Incomplete or incorrect trip sheets, missing fuel checks or incorrect odometer readings can mark your account as a “red flag” for audits.

What to do: Use ELDs, GPS and odometer logs to record exact mileage and fuel purchases, never estimates.

3. Multiple Amended Returns

Many carriers forget to include personal use and deadhead miles and trailer-free trips in their IFTA reports. Even though some of these miles may not be taxable, they must still be recorded to show complete trip data. Leaving gaps in mileage makes records look inaccurate and can raise questions during an audit.

What to do: Train drivers to log every mile: personal, loaded, empty or bobtail. Review trip sheets often. Compare odometer numbers with reported miles. 

4. Failing to Document Odometer or GPS Issues

When GPS or odometers start malfunctioning, missing data without documentation makes your records unreliable. Auditors want to see proof of how trips were tracked. Any unexplained gap will cause questions and result in rejected mileage or recalculations.

What to do: Always keep a manual backup log with the exact date, time, and nature of the issue. Using outdated software or ELDs can also create problems. Systems that don’t meet IFTA standards or fail to update fuel tax tables may lead to reporting errors. Older technology may miss data or fail to capture precise GPS locations, causing additional complications.

What to do: Use IFTA-approved software. Schedule periodic checkups using reminders or calendars. Use GPS systems that record pings at least every five minutes with latitude and longitude to four decimals. 

5. Incomplete or Illegible Fuel Receipts

Fuel receipts that are faded, missing details or only show pre-authorization amounts cannot be used to claim credits. Missing vendor name, date, gallons, fuel type or vehicle number may result in disallowed purchases during an audit.

What to do: Require drivers to collect full receipts every time fuel is purchased. Scan or photograph them immediately. Organize digital copies by quarters and vehicles in separate files. 

6. Bulk Fuel Purchase Problems

Carriers that fill up from bulk tanks often forget to write down which truck used the fuel and how much was taken. If there are no withdrawal logs tied to vehicle IDs, the tax office may not let them count that.

What to do: Keep detailed bulk fuel logs showing date, gallons and vehicle ID or number for every withdrawal. Double-check bulk tank inventory regularly. 

7. Odd or Impossible MPG

When reported MPG is outside the normal 5-10 MPG range or fluctuates between quarters, it signals that you might have inaccurate data. Auditors may assign a default low MPG, increasing tax liability.

What to do: Review MPG trends quarterly. Check MPG for anomalies; look for missing miles, lost receipts or equipment errors. 

8. Poor Internal Review Before Filing

When carriers are in a hurry to meet the quarterly deadline, it’s easy to file IFTA reports without a proper review. But this may lead to errors like typing the wrong number, forgetting to include a certain mile or mixing up totals between different states. To you, these mistakes may seem harmless to your eye, but they can trigger penalties during an audit. 

What to do: Before submitting, set time for final review. Use a checklist for covering the basics. Assign a second reviewer or use IFTA filling agency to help you out. 

9. Multiple Amended Returns

Submitting more than one corrected IFTA report in the same period can make it look like your records are unreliable. Mistakes happen, but frequent submissions can send a signal to IFTA auditors that your data is not checked up correctly, and they may soon give you a visit.

What to do: Take your time to verify the numbers before filing the first report. Double check the mileage totals from odometers and GPS. Check if the fuel receipts are readable and complete. Use software tools or an internal review checklist for errors. 

10. Not Keeping Records Long Enough

IFTA requires to keep the mileage records for at least four years after the return. If those records cannot be provided during the audit, your tax credits for fuel purchases may be denied and you would get a penalty. For not getting into problems because of old trip data, keep them in files and separate them by quarters and years.

What to do: Organize records by quarter/year in both digital and paper formats. Use servers with automatic data backup for the files. Assign someone from the team to be responsible for keeping the recordings safe. 

What Are the Best Practices and Tools for Compliant IFTA Filings

Filing IFTA returns correctly not only protects you from getting fines, but also saves time and builds confidence that your trucking company can pass audits anytime. Here are the best practices every carrier should follow:

1. File on time and every time: mark the quarter deadlines (April 30, July 31, October 31, and January 31) in your calendar with red. Even if you had no miles or fuel purchases, submit a zero return to avoid late fees.
2. No estimations, only accurate data: rely on ELDs, GPS or odometers for mileage numbers, but at the same time, keep manual recordings as well. Because who knows, maybe the GPS decides to break down.
3. Log every mile: report ALL the miles you travel, no matter business, personal, empty run or what. Even one missing mile can create a gap in records.
4. Organize fuel recipes: each must include a name, date, gallons, fuel type, state and vehicle numbers. Scan or picture them in case you miss the paper version.
5. Check the MPG trends: truck standard usually falls within 5-10 MPG. Big MPG values can cause suspicions and lead to audits.
6. Document every failure: if GPS or ELD fails, the auditors expect notes on explaining the issue. Do manual backup logs during those periods.
7. Always review before sending: double check what you’ve filled or have a second viewer to exclude mistakes in your report.
8. Keep your records back from 4 years: many companies even keep their records from 6 years for not failing the audits.

Use services like IFTA.online to simplify the entire filling process to stay in compliance.

Avoiding mistakes in IFTA filings is about saving money, avoiding unnecessary audits and protecting your reputation. By filing on time, keeping accurate records, training drivers and using the right tools, you can turn a stressful quarterly task into a hassle-free process.
If you want peace of mind with every return, our experts can help you keep your filings accurate, avoid penalties and stay ahead of audits.