Latest News: Latest News

IFTA Changes Interest Rates

Monday, August 12, 2013  
Share |

This is a result of the 2010 IFTA ballot proposal in which the membership ratified a change to the interest rate from one percentage point to the two percentage points above the Internal Revenue Code adjusted on an annual basis.

 

R1230 INTEREST

 

.100 U.S. Jurisdiction Interest Rate

For a fleet based in a US jurisdicition, 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 Interanl Revenue Code, adjusted on an annual basis on January 1 of each year. Interest shall accrue monthly at 1/12 this annual rate. The Repository shall notify Jurisdictions of the new rate by December 1.

 

Effective Date

IRS Underpayment Rate

IFTA Annual Interest Rate

7/1/2013

3%

5%

 

Example At the current rate of five percent per year the monthly interest rate is 0.004167 per month.

 

This means if a carrier files their First Quarter 2013 late in August, interest rate per month is:

 

First Quarter tax return due April 30.

May interest rate will be calculated at 1%

June interest rate will be calculated at 1%

July interest rate will be calculated at .004167

August interest rate will be calculated at .004167

 

This interest rate will adjust every January 1 for the calendar year.