5 Fuel Tax Mistakes That Can Cost You Thousands

Avoid Them Before It’s Too Late!

If you operate a commercial trucking company or are an owner-operator, you already know how complex fuel tax reporting can be. From IFTA (International Fuel Tax Agreement) to Weight Distance Taxes, compliance isn’t optional—it’s essential. Missing deadlines or submitting incorrect data can cost your business thousands in penalties, trigger audits, or even result in suspended operating privileges.

At CDL Services Inc., we’ve been helping fleets and drivers navigate these challenges for over 20 years. We’ve seen the most common mistakes—and helped hundreds avoid or correct them with expert guidance.

Here are the top 5 fuel tax mistakes that can cost you big—and how to avoid them with the right help.

1. Late or Incomplete IFTA Filings

IFTA filings are due quarterly, and many carriers either miss the deadlines or submit incomplete information. That’s all it takes to be hit with penalties, interest charges, and even a suspended IFTA license.

Official IFTA Deadlines:

• Q1 (Jan–Mar): Due April 30
• Q2 (Apr–Jun): Due July 31
• Q3 (Jul–Sep): Due October 31
• Q4 (Oct–Dec): Due January 31

Missing any of these dates can immediately put your business at risk.

What can you do?

Trust CDL Services to keep your IFTA filings accurate and submitted on time. We use professional-grade tools, verify all fuel receipts and trip logs, and keep you fully compliant—quarter after quarter.

2. Ignoring Weight Distance Tax Obligations

Weight Distance Taxes are not covered under IFTA and are required in several states if your vehicle exceeds specific weight thresholds (typically 26,000 lbs or more). Failing to register and file in these states can lead to heavy penalties and even revocation of operating authority.

States that require Weight Distance Tax filings include:

• Kentucky (KYU)
• New Mexico (WDT)
• New York (NY HUT)
• Oregon (OREGON WDT)
• Connecticut (CT WDT)

Each state has its own filing frequency and reporting rules, and non-compliance can result in stiff fines and audits.

What can you do?

With CDL Services on your side, we monitor where your trucks operate and make sure your business is registered and filing correctly in all necessary jurisdictions. No guesswork—just peace of mind.

3. Inaccurate Mileage and Fuel Records

Both IFTA and Weight Distance Taxes rely on accurate data. Incomplete or incorrect trip sheets, missing fuel receipts, or inconsistent odometer readings can flag your account for audits and recalculations.

What can you do?

We implement strict data checks to verify your records before submission. Our clients benefit from our secure digital filing systems and mileage tracking tools, ensuring reliable and audit-proof reports.

4. Mathematical and Clerical Errors

Misreporting fuel gallons, calculating miles traveled incorrectly, or simple math mistakes can all cost you. These errors can reduce your refunds—or worse, lead to underpayments that trigger back tax bills and penalties.

What can you do?

Let our team of compliance experts do the math. We review every line, double-check every figure, and make sure every form is submitted clean and accurate. With over two decades of experience, we’ve caught and corrected thousands of these small (but costly) errors.

5. Failing to Maintain Backup Documentation

Every IFTA and Weight Distance filing must be supported by valid, verifiable documentation. That includes fuel receipts, trip logs, mileage summaries, and state-by-state reports. Missing records during an audit can lead to major fines—even if your filings were otherwise accurate.

What can you do?

CDL Services provides a centralized digital archive for all your fuel and mileage documentation. We prepare you not just for tax season—but for audits, inspections, and any surprise compliance checks. Learn more about our fuel and mileage tax services

Why Proper Filing Matters More Than Ever

The IFTA department and state taxing authorities are increasing enforcement efforts. They’re cross-checking miles, fuel gallons, and route logs more aggressively—and the penalties for non-compliance are rising.

That’s why working with an experienced, trustworthy partner like CDL Services Inc. is critical. We offer:

 Accurate, on-time IFTA and Weight Distance tax filings

 Full recordkeeping support

 Personalized compliance strategies

 20+ years of proven industry experience

Don’t risk your business on DIY mistakes or untrained staff. Trust the pros to keep you rolling without penalties, headaches, or downtime.

Reach out to us for a consultation today: 

Email: permits@cdlservicesinc.com

Let us help make 2025 your best year yet!