North Dakota Code 57-38-45 – Interest and penalties
1. In addition to other increases to tax and penalty prescribed in this chapter, a taxpayer is subject to interest as follows:
Attorney's Note
Under the North Dakota Code, punishments for crimes depend on the classification. In the case of this section:| Class | Prison | Fine |
|---|---|---|
| Class A misdemeanor | up to 360 days | up to $3,000 |
Terms Used In North Dakota Code 57-38-45
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- following: when used by way of reference to a chapter or other part of a statute means the next preceding or next following chapter or other part. See North Dakota Code 1-01-49
- Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
- Person: means an individual, organization, government, political subdivision, or government agency or instrumentality. See North Dakota Code 1-01-49
- State: when applied to the different parts of the United States, includes the District of Columbia and the territories. See North Dakota Code 1-01-49
a. Any taxpayer who requests and is granted an extension of time for filing a return shall pay, with the tax, interest on the tax at the rate of twelve percent per annum from the date the tax would have been due if the extension had not been granted to the date the tax is paid.
b. If any amount of tax imposed by this chapter, including tax withheld by an employer, is not paid on or before the due date or extended due date for the payment, there must be added to the tax interest at the rate of one percent per month or fraction of a month during which the tax remains unpaid, computed from the due date of the return to the date paid excepting the month in which the return was required to be filed or the tax became due.
c. If upon audit an additional tax is found to be due, there must be added to the additional tax due interest at the rate of one percent of the additional tax for each month or fraction of a month during which the tax remains unpaid, computed from the due date of the return to the date paid, excepting the month in which the return was required to be filed or the tax became due.
d. If the mathematical verification of a taxpayer’s return results in additional tax due, there must be added to the additional tax interest at the rate of one percent of the additional tax due for each month or fraction of a month during which the tax remains unpaid, computed from the due date of the return to the date paid, excepting the month in which the return was required to be filed or the tax became due.
e. If a deficiency is determined for a tax period for which there was an overpayment that was applied to the following tax period’s estimated tax under subsection 6 of section 57-38-62, interest accrues with respect to the amount of the deficiency that is equal to or less than the amount of the overpayment applied from the estimated tax payment date to which the overpayment was applied.
f. If a deficiency is determined for a tax period for which there was an overpayment of estimated tax that was refunded, interest accrues, with respect to the amount of the deficiency which is equal to or less than the amount of the overpayment of estimated tax refunded, from the date of payment of the refund.
2. In addition to the tax and interest prescribed in this chapter, a taxpayer is subject to penalties as follows:
a. If any taxpayer, without intent to evade any tax imposed by this chapter, shall fail to pay the amount shown as tax due on any return, including tax withheld by an employer, filed on or before the due date or extended due date prescribed therefor, there shall be added to the tax a penalty of five percent thereof, or five dollars, whichever is greater.
b. If any taxpayer, without intent to evade any tax imposed by this chapter, shall fail to file a return, including the employer’s withheld tax return, on or before the due date or extended due date prescribed therefor, there shall be added a penalty equal to five percent of the tax required to be reported, or five dollars, whichever is greater, if the failure is for not more than one month, counting each fraction of a month as an entire month, with an additional five percent for each additional month or fraction thereof during which the failure continues, not exceeding twenty-five percent in the aggregate.
c. If upon audit of a taxpayer’s return, including tax withheld by an employer, an additional tax is found to be due, there shall be added to the tax the penalty as prescribed in subdivision a or b.
d. If the mathematical verification of a taxpayer’s return, including tax withheld by an employer, results in additional tax due, there shall be added to the tax the penalty as prescribed in subdivision a or b.
e. The provisions of subdivision a, b, c, or d do not apply to the extent it has been determined that the taxpayer has offsetting overpayments of income taxes which have not been refunded.
3. Any person including any officer or employee of any corporation or any member or employee of any partnership or any member, employee, governor, or manager of a limited liability company who, with intent to evade any requirement of this chapter, shall fail to pay any tax, or to make, sign, or verify any return, or to supply any information required by law, or under the provisions of this chapter, or who with like intent shall make, render, sign, or verify any false or fraudulent information, shall be subject to a penalty of not more than one thousand dollars to be recovered by the attorney general, in the name of the state, by action in any court of competent jurisdiction. Such person shall also be guilty of a class A misdemeanor.
4. In case any person or any corporation fails to pay any tax, addition to tax, interest, or penalty imposed by this chapter, the attorney general shall bring action for the recovery of the amount of the tax, addition to tax, interest, or penalty which may be due, in the name of the state, in any court of competent jurisdiction.
5. The tax commissioner may for good cause shown waive all or any part of any civil penalty or interest that attached pursuant to the provisions of this chapter.
6. If any taxpayer who has failed to file a return and has been notified by the tax commissioner of the delinquency, refuses or neglects within thirty days after such notice to file a proper return, the tax commissioner shall determine the income of such taxpayer according to the best information available, and shall assess the tax at not more than double the amount so determined. The appropriate interest and penalty prescribed in subsections 1 and 2 shall also be added.
7. If any corporation fails to file an income tax return as required by section 57-38-32 on the date prescribed in section 57-38-34, and after thirty days’ notice to file is given by the tax commissioner, the tax commissioner may assess a penalty of up to five hundred dollars for each failure to file.