(1) IFTA licensees, or others as determined by the department, who fail to file a fuel tax return(s) and pay fuel tax liability must post a bond equivalent to twice the licensee's estimated quarterly tax liability, but not less than $500. The bond may be a surety, a certificate of deposit, or cash.

(2) A licensee must post a bond for non-compliance events including:

(a) three late quarterly filings in a three-year period;

(b) non-payment or late payment of the tax liability of an IFTA quarterly tax return two or more times in a four-quarter period; or

(c) the license was previously revoked and the licensee has requested reinstatement of the license.

(3) The bond dollar amount is increased by $500 for each additional non-compliance infraction.

(4) The bond requirement is removed and the bond released after three years if the licensee has timely complied with all applicable statutes and rules for those three years.

(5) The department, in its sole discretion, may waive the bond requirement if the late filing or the nonpayment was not in the control of the licensee.

(6) Failure to post a required bond within 14 days of issuance of an IFTA bond requirement notice may result in revocation of the IFTA license.