§ 57-38-45 — Interest and penalties

1. In addition to other increases to tax and penalty prescribed in this chapter, a taxpayer
is subject to interest as follows:
a. Any taxpayer who requests and is granted an extension of time for filing a return
shall pay, with the tax, interest on the tax at the rate of twelve percent per annum
from the date the tax would have been due if the extension had not been granted
to the date the tax is paid.
b. If any amount of tax imposed by this chapter, including tax withheld by an
employer, is not paid on or before the due date or extended due date for the
payment, there must be added to the tax interest at the rate of one percent per

month or fraction of a month during which the tax remains unpaid, computed from
the due date of the return to the date paid excepting the month in which the return
was required to be filed or the tax became due.
c. If upon audit an additional tax is found to be due, there must be added to the
additional tax due interest at the rate of one percent of the additional tax for each
month or fraction of a month during which the tax remains unpaid, computed from
the due date of the return to the date paid, excepting the month in which the
return was required to be filed or the tax became due.
d. If the mathematical verification of a taxpayer's return results in additional tax due,
there must be added to the additional tax interest at the rate of one percent of the
additional tax due for each month or fraction of a month during which the tax
remains unpaid, computed from the due date of the return to the date paid,
excepting the month in which the return was required to be filed or the tax
became due.
e. If a deficiency is determined for a tax period for which there was an overpayment
that was applied to the following tax period's estimated tax under subsection 6 of
section 57-38-62, interest accrues with respect to the amount of the deficiency
that is equal to or less than the amount of the overpayment applied from the
estimated tax payment date to which the overpayment was applied.
f. If a deficiency is determined for a tax period for which there was an overpayment
of estimated tax that was refunded, interest accrues, with respect to the amount
of the deficiency which is equal to or less than the amount of the overpayment of
estimated tax refunded, from the date of payment of the refund.
2. In addition to the tax and interest prescribed in this chapter, a taxpayer is subject to
penalties as follows:
a. If any taxpayer, without intent to evade any tax imposed by this chapter, shall fail
to pay the amount shown as tax due on any return, including tax withheld by an
employer, filed on or before the due date or extended due date prescribed
therefor, there shall be added to the tax a penalty of five percent thereof, or five
dollars, whichever is greater.
b. If any taxpayer, without intent to evade any tax imposed by this chapter, shall fail
to file a return, including the employer's withheld tax return, on or before the due
date or extended due date prescribed therefor, there shall be added a penalty
equal to five percent of the tax required to be reported, or five dollars, whichever
is greater, if the failure is for not more than one month, counting each fraction of a
month as an entire month, with an additional five percent for each additional
month or fraction thereof during which the failure continues, not exceeding
twenty-five percent in the aggregate.
c. If upon audit of a taxpayer's return, including tax withheld by an employer, an
additional tax is found to be due, there shall be added to the tax the penalty as
prescribed in subdivision a or b.
d. If the mathematical verification of a taxpayer's return, including tax withheld by an
employer, results in additional tax due, there shall be added to the tax the penalty
as prescribed in subdivision a or b.
e. The provisions of subdivision a, b, c, or d do not apply to the extent it has been
determined that the taxpayer has offsetting overpayments of income taxes which
have not been refunded.
3. Any person including any officer or employee of any corporation or any member or
employee of any partnership or any member, employee, governor, or manager of a
limited liability company who, with intent to evade any requirement of this chapter,
shall fail to pay any tax, or to make, sign, or verify any return, or to supply any
information required by law, or under the provisions of this chapter, or who with like
intent shall make, render, sign, or verify any false or fraudulent information, shall be
subject to a penalty of not more than one thousand dollars to be recovered by the
attorney general, in the name of the state, by action in any court of competent
jurisdiction. Such person shall also be guilty of a class A misdemeanor.

4. In case any person or any corporation fails to pay any tax, addition to tax, interest, or
penalty imposed by this chapter, the attorney general shall bring action for the
recovery of the amount of the tax, addition to tax, interest, or penalty which may be
due, in the name of the state, in any court of competent jurisdiction.
5. The tax commissioner may for good cause shown waive all or any part of any civil
penalty or interest that attached pursuant to the provisions of this chapter.
6. If any taxpayer who has failed to file a return and has been notified by the tax
commissioner of the delinquency, refuses or neglects within thirty days after such
notice to file a proper return, the tax commissioner shall determine the income of such
taxpayer according to the best information available, and shall assess the tax at not
more than double the amount so determined. The appropriate interest and penalty
prescribed in subsections 1 and 2 shall also be added.
7. If any corporation fails to file an income tax return as required by section 57-38-32 on
the date prescribed in section 57-38-34, and after thirty days' notice to file is given by
the tax commissioner, the tax commissioner may assess a penalty of up to five
hundred dollars for each failure to file.