North Dakota Administrative Code › Title 81 - Tax Commissioner › Article 81-03 - Income Taxes and Privilege Taxes Based on Income › Chapter 81-03-01.1 - General Considerations › Section 81-03-01.1-09 - Requirement to report federal changes

Current through Supplement No. 393, July, 2024
1. The following
				provisions are applicable for purposes of interpreting subsection 1 of North
				Dakota Century Code section
				57-38-34.4:
a. If a change or correction to federal
				taxable income or federal income tax liability is initiated by the United
				States internal revenue service, the change or correction must be reported to
				the commissioner even if it does not result in an underpayment or an
				overpayment of federal income tax.
b. "Final determination" means a decision,
				action, or date from which no further action is taken by the taxpayer or the
				United States internal revenue service to resolve any dispute relating to the
				change or correction which was made to the taxpayer's federal taxable income or
				federal income tax liability. A final determination has occurred if any of the
				following circumstances apply:
(1) A taxpayer
				receives a notice or other correspondence from the United States internal
				revenue service which makes an adjustment to the taxpayer's federal taxable
				income based on:
(a) A mathematical or
				clerical error.
(b) Any other
				change or correction if the taxpayer has paid or arranged to pay the
				underpayment of federal income tax, or if the United States internal revenue
				service has credited or refunded to the taxpayer an overpayment of federal
				income tax. A final determination does not occur, however, if a taxpayer pays
				the tax and then files a claim for credit or refund with the United States
				internal revenue service.
(2) A taxpayer waives the restrictions on
				assessment and collection of all or any part of an underpayment of federal
				income tax by signing a federal form 870 or any other form prescribed for this
				purpose by the United States internal revenue service. A final determination
				does not occur with respect to any part of the underpayment which is not
				covered by the waiver. If the signature of an authorized representative of the
				United States internal revenue service is required to execute this waiver, the
				date of final determination is when the taxpayer receives notice of the
				signing. A final determination does not occur, however, if a taxpayer pays the
				tax and then files a claim for credit or refund with the United States internal
				revenue service.
(3) A taxpayer
				receives a federal statutory notice of deficiency and does not timely file a
				petition with the United States tax court for redetermination of the assessed
				underpayment of federal income tax. The date of final determination is when the
				time period within which to file the petition expires. A final determination
				does not occur, however, if a taxpayer pays the tax and then files a claim for
				credit or refund with the United States internal revenue service.
(4) A closing agreement is executed pursuant
				to United States Internal Revenue Code section 7121 [
				26 U.S.C.
				7121 ]. The date of final determination is
				when the taxpayer receives notice of the signing of the closing agreement by an
				authorized representative of the United States commissioner of internal
				revenue.
(5) A federal court of
				law issues a decision which is not appealed or is not subject to appeal.
(6) A federal court of law
				approves a voluntary agreement stipulating final disposition of a case.
(7) If a taxpayer files a claim
				for credit or refund of all or any part of an underpayment of federal income
				tax, as described in paragraph 1, 2, or 3, a final determination has occurred
				if any of the following circumstances apply:
(a) The taxpayer receives notice of the
				disallowance of the claim for credit or refund from the United States internal
				revenue service and the taxpayer does not appeal the disallowance or file a
				suit for refund.
(b) The taxpayer
				receives notice of the allowance of the claim for credit or refund from the
				United States internal revenue service.
(c) Receipt of the refund from the United
				States internal revenue service, if no prior notice is received.
(d) The provisions of paragraph 4, 5, or 6
				apply.