N.D. Admin Code 81-03-04-01 - Corporation required to report and pay estimated tax and interest - Refund of overpayment

1. Any corporation may elect to make a payment of estimated income tax with the tax commissioner.

2. A corporation is required to make a payment of estimated tax with the tax commissioner if:

a. The corporation's previous year's state income tax liability exceeded five thousand dollars; and

b. The corporation reasonably expects the current state income tax liability to be in excess of five thousand dollars.

3. For the purpose of this section, tax liability is defined as the amount of North Dakota tax due computed after the application of allowable credits and before the application of estimated payments.

4. When making payment of estimated income tax, a corporation has the option of basing the estimation on the tax liability for the previous year or on an estimate of the liability for the current tax year.

5. The payment of estimated income tax must be made on or before the fifteenth day of the fourth month of the current corporate tax year. The original payment of estimated income tax may be amended anytime before the fifteenth day of the first month of the tax year following the current tax year.

6. A corporation shall pay the estimated tax liability in four equal installments payable on the fifteenth day of the fourth, sixth, and ninth month of the current tax year and the fifteenth day of the first month of the following tax year. As an alternative to paying in quarterly installments, a corporation may pay the entire estimated amount on the fifteenth day of the fourth month of the current tax year.

7. For taxable years beginning after December 31, 1986, the provisions for recurring seasonal income as provided in section 6655(e) of the Internal Revenue Code are recognized for state income tax purposes.

8. For taxable years beginning after December 31, 1990, the provisions for the annualized or adjusted seasonal method of determining estimated income under section 6655 of the Internal Revenue Code are recognized for state income tax purposes.

9. For purposes of subsection 5 of North Dakota Century Code section 57-38-62:

a. An amended return filed on or before the due date, including extensions for filing the original return, is the corporation's return for that taxable year.

b. An audit assessment does not affect the calculation of estimated tax payments.

10. Interest shall apply in the following conditions:

a. A corporation did not pay the estimated tax on or before the quarterly due date.

b. The quarterly estimated payments were underpaid by more than ten percent of the actual tax liability for the current tax year divided by four. However, no interest will apply if the quarterly estimated payments equaled the previous year's total tax divided by four.

11. Estimated tax payments, received as a result of an amendment to the originally estimated tax, will have interest computed from the date paid to the date due in the related quarters.

12. If the total amount of estimated tax payments exceed the total amount of tax required to be paid for the current tax year, the overpayment will be refunded.

13.

a.If the total amount of estimated tax payments exceeds the anticipated tax liability for the tax year by more than five hundred dollars, a quick refund may be requested. The request for refund must be filed on forms provided by the tax commissioner. In addition, the request must be filed after the close of the tax year and before the original due date of the tax return. No interest will be paid on a quick refund.

b. If a quick refund of estimated income tax results in a corporation's failure to meet the requirements of North Dakota Century Code section 57-38-62, interest provisions will apply.

Notes

N.D. Admin Code 81-03-04-01

Effective July 1, 1985; amended effective November 1, 1987; November 1, 1991; August 1, 1994; April 1, 1996; July 1, 1998.

General Authority: NDCC 57-38-56

Law Implemented: NDCC 57-38-62