International Fuel Tax Agreement (Ifta) - Commonwealth Of Massachusetts (Page 8 of 17) in pdf

International Fuel Tax Agreement

E. Penalty and Interest

If a licensee fails to file a return, files a late tax return, or fails to remit any tax due, the licensee is subject to pen-

alty and interest. The penalty for failure to file a tax return when due is the greater of fifty dollars ($50) or ten

percent (10%) of the net tax due to all member jurisdictions. Interest is computed on all delinquent taxes due

each jurisdiction at a rate of one percent (1%) per month, from the date the tax was due for each month, or a

fraction thereof, until paid.

F. Bonding/Certified Check

A bond may be required for just cause (e.g., when a licensee fails to file timely returns, when tax has not been re-

mitted, or when an audit indicates problems that warrant bonding). A licensee required to post a bond must pro-

vide a surety bond, bank certificates of deposit, or any other obligation that the Massachusetts Department of

Revenue deems appropriate. Payment by certified check is required from any licensee required to post bond.

G. Compressed Natural Gas (CNG)

CNG and other fuels that cannot be measured in gallons must be converted to gallons by using the conversion

factor used by the jurisdiction in which the fuel was consumed.

H. Refunds and Credits

A refund may be claimed on the IFTA tax return for any overpayment of tax in a reporting period. Please com-

plete line 11 on the IFTA tax return if a refund is requested. A refund will be issued after the Department has

determined that all tax liabilities, including any outstanding audit assessments, have been satisfied to all

member jurisdictions. A refund may be denied if the licensee is delinquent in filing any quarterly tax return(s).

If a refund is not requested, the credit will be carried forward to the next period. Earned credits will expire

if not used after eight (8) quarters.

I. Exempt Fuel Use

IFTA jurisdictions may define specific tax-exempt fuel use in their own jurisdiction. This exemption is not cal-

culated on the IFTA tax return.

An exemption must be obtained from the jurisdiction in which the tax was paid. The licensee must maintain ad-

equate records to support the exemption claimed and submit a separate refund claim for tax paid on tax-exempt

fuel directly to the appropriate taxing jurisdiction.

J. Tax-Exempt Miles

IFTA recognizes that some jurisdictions have unique economic and geographic characteristics which have given

rise to various definitions of tax-exempt miles. If questions arise, contact the individual member jurisdictions.

All jurisdictions require supporting documentation.

These miles should be reported. Total miles should be reduced only on the jurisdiction calculation, not the

miles per gallon calculation.

International Fuel Tax Agreement (Ifta) - Commonwealth Of Massachusetts Page 8