North Dakota tax payment plan requests and what they cost

Asking for a plan in North Dakota

Your first step in North Dakota is simple. In ND TAP, the Taxpayer Access Point, you can ask for a plan through Request a Payment Plan. The Tax Commissioner’s collections page lists that choice and paying there by bank account is free for you. The plan lets you pay what you owe over time instead of making one full payment.

The office does not post a set plan length or down payment online. Terms are worked out with you by the Collections Section, according to the office. If full payment is not possible or you miss payments, the most important step is to contact someone and describe your situation. Contact information appears on that collections page.

Even without the money, file your return

According to the Commissioner’s advice, file your return by the due date even when you cannot pay. If the due date has passed, submit your return as soon as possible and pay any amount you can. This matters because the two penalties have very different amounts.

Which penalties and interest charges apply?

Section 57-38-45 establishes these charges. Its source is chapter 57-38 of the Century Code, North Dakota’s income tax law:

• Beginning on the due date, interest accrues at 1% whenever tax remains unpaid for a month or part of one.
• A filed return paid late is subject to a penalty of 5% of the unpaid tax or $5, whichever amount is larger.
• Each month a return is late adds a penalty of 5% of the tax, but the total cannot exceed 25% or $5 if that is higher.
• Interest at 12% a year applies to tax paid under a filing extension, starting from the original due date.

Letters you might receive

Each letter tells you the status of your debt. A Statement of Tax Due appears first on the unpaid tax letters page. Additional letters follow until the debt is paid. Your account is handled by the Collections Section after you receive a Collection Letter. A refund taken for debt, a plan for taking your federal refund and a tax lien already filed are also reported in other letters.

When a North Dakota tax bill remains unpaid

Collection starts with reminders by mail and phone. According to the collections page, the office may place a tax lien against your real and personal property. It may also send the debt to the federal Treasury Offset Program and refer your case to its Legal Division.

Your property can be subject to a legal claim called a lien. Such a claim may block a sale or purchase when the property lacks a clear title. Because it is public, credit agencies can pick up this record. Your federal income tax refund can be held back by the Treasury Offset Program and applied to an income tax debt owed to North Dakota. Some businesses may also lose their sales and use tax permit if they fall behind on sales tax reports. A hearing comes before the loss and they are told about it.

Comparing an IRS plan with a state plan

The Tax Commissioner and the IRS handle their payment plans separately. Every plan is arranged separately and requires its own monthly payment. You may be counting on a federal refund, but North Dakota can also receive it through the offset program. Leave that money out of your budget.

Nearby states

• Minnesota
• South Dakota
• Montana
• All states