North Dakota: Sales Tax Handbook
How to appeal a sales tax audit or penalty in North Dakota
In North Dakota, the Office of State Tax Commissioner will frequently audit business sales tax returns and may issue penalties or punishments for tardy filing, incorrect reporting, willful omissions, or other violations. Penalties can range from fines to revocation of your sales tax permit depending on the infraction.
If you disagree with a penalty or ruling made by the North Dakota Office of State Tax Commissioner, you have several options you can pursue in appealing their decision. This page contains basic guidelines for appealing to the Office of State Tax Commissioner, to an administrative appeal body, and through the courts.
Sales Tax Statute of Limitations in North Dakota
In sales tax law, the "statute of limitations" is the maximum amount of time state authorities have to investigate and begin potential audit or prosecution related to a a filed North Dakota sales tax return in the event of underpayment, incorrect reportings, etc. The Office of State Tax Commissioner cannot begin an audit or issue a penalty after this timeframe.
The statute of limitations in North Dakota is three years from later of either the return due date or the return filing date. It must be noted that if the tax is understated by at least 25%, it becomes six years from either the return due date or the return filing date. It becomes six years from the return due date in the case where no return was filed.
Appealing to the Office of State Tax Commissioner in North Dakota
If you do not agree with a penalty or decision made by the North Dakota Office of State Tax Commissioner, you have the right to file an appeal and ask for reconsideration. In the case of a department appeal, an official petition must be filed with the Tax Commission within 30 days after notice of determination
TopAdministrative Sales Tax Appeals in North Dakota
The state has no administrative appeal body
TopJudicial Sales Tax Appeals in North Dakota
If all other appeal avenues fail, businesses can make a final appeal in the state court system. When working with judicial appeals, the suit must be filed with the District Court within thirty days after notice of decision or denial of rehearing request
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