The State of North Dakota Tax Department or the North Dakota Office of State Commissioner (ND OSC) does offer relief for taxpayers who either need to file late, pay late, or pay tax liabilities over time. In other words, just like the IRS, the ND OSC has mechanisms to help taxpayers in certain situations.
If you cannot pay your ND tax bill in full, the state asks that you pay as much as you and to contact their Collections department at 701-328-1244. In many cases, you will be able to set up a “reasonable” payment plan which can often prevent a tax lien from being placed on your credit report. A payment normally carriers interest, but it will allow you to pay off your tax liabilities over a period of 6 months at 12% interest (ouch!). Furthermore, you will still incur the failure to pay penalty, which ranges depending on the balance. With such a high-interest rate, you may want to consider methods of paying off your tax bills such as a home equity loan, personal loan, or credit card, assuming one of these assumptions will charge you less interest and give you more time to pay off the tax balance.
An Offer In Compromise is available to certain financially troubled taxpayers in the state of North Dakota, regarding those with unpaid tax bills. Just like the IRS and many states, the state of North Dakota states in their Biennial Report, that a liabilityor’s individual “income tax liability may be reduced based upon a federal offer in compromise.” In other words, it is contingent on you receiving an acceptance on a Federal Offer in Compromise. Therefore, if you don’t owe the IRS any money but only owe the State of North Dakota, then an Offer In Compromise will not be a possible option.
If you need an extension to file your taxes, the North Dakota Office of the State Tax Commissioner provides state taxpayers with the ability to request one as long as there is “good cause.” Realize that “good cause” does not include the inability to pay. However, If the IRS grants you an extension to file your Federal tax return, you do not need to have “good cause” to receive an ND tax filing extension, and you do not have to notify the ND OSC. The ND OSC will give you an extension to file that matches your Federal tax extension to file. For 2013, it is October 15th, 2013. If you do not need a Federal tax extension, but need a filing extension just for the state of North Dakota, you will need to fill out Form 101 and it must be mailed on or before the normal tax filing deadline. Be sure to include any prepayment of tax owed with your extension request, otherwise, any taxes due that are unpaid will accrue at 12% interest. For individuals, use Form ND-1EXT, which is the applicable payment voucher.
Our partners are comprised of tax attorneys, CPAs, and Enrolled Agents. Generally, the state of North Dakota prefers working with attorneys and CPAs. These professionals may be able to help you resolve North Dakota tax issues and get you into compliance, whether your tax problems result from unfiled tax returns (late filings), unpaid taxes, wage, and other tax levies, tax liens, and other back tax problems. If you prefer to work with a tax professional, utilize the form on the right in order to get a free consultation on whether our partner professionals can help. The consultation is free and will inform you on possible courses of action and applicable fees.
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