§ 57-38-62 — Payment of estimated income tax

North Dakota § 57-38-62

• Jurisdiction: North Dakota
• Title 57: Taxation
• Ch. 57-38: Income Tax

Text

1. An individual, estate, or trust that is subject to section 6654 of the Internal Revenue
Code relating to a failure to pay federal estimated income tax shall, at the time
prescribed in this chapter, pay estimated tax for the current taxable year.
Notwithstanding any other provision of this section, an individual, estate, or trust
whose net tax liability for the preceding taxable year was less than one thousand
dollars is not required to pay estimated tax for the current taxable year. Married
individuals who file a joint federal income tax return and are subject to section 6654 of
the Internal Revenue Code must each be deemed to be subject to the federal
provision. If payment of estimated tax is required, the individual, estate, or trust shall,
at the time prescribed in this chapter, pay the lesser of the following:
a. An amount which, when added to the taxpayer's withholding, equals ninety
percent of the taxpayer's current taxable year's net tax liability.
b. An amount which, when added to the taxpayer's withholding, equals one hundred
percent of the taxpayer's net tax liability for the immediately preceding taxable
year.
(1) This subdivision does not apply to any taxpayer who was not required by
this chapter to file a return for the immediately preceding taxable year, to an
individual who moved into this state during the immediately preceding
taxable year, or to an estate or trust that was not in existence for the entire

immediately preceding taxable year. The amount under this subdivision
must be deemed to be equal to the amount in subdivision a if this part
applies.
(2) In order to satisfy the requirements of this subdivision, married individuals
who are required to file separate state returns for the current taxable year
but who were required to file a joint state return for the immediately
preceding taxable year must each be required to pay estimated tax in an
amount which, when added to the individual's withholding, equals the net tax
liability which would have been computed for the immediately preceding
taxable year if separate state returns had been required to be filed.
(3) In order to satisfy the requirements of this subdivision, married individuals
who are required to file a joint state return for the current taxable year but
were required to file separate state returns for the immediately preceding
taxable year must be required to pay estimated tax in an amount which,
when added to their withholding, equals the sum of their separate net tax
liabilities for the immediately preceding taxable year.
2. A corporation shall, at the time prescribed in this chapter, pay estimated tax for the
current taxable year if the corporation's estimated tax can reasonably be expected to
exceed five thousand dollars and if the corporation's net tax liability for the immediately
preceding taxable year exceeded five thousand dollars. If payment of estimated tax is
required, the corporation shall, at the time prescribed in this chapter, pay the lesser of
the following:
a. An amount which, when added to the corporation's withholding, equals ninety
percent of the corporation's current taxable year's net tax liability.
b. An amount which, when added to the corporation's withholding, equals one
hundred percent of the corporation's net tax liability for the immediately preceding
taxable year.
3. The provisions of section 57-38-45, except those provisions relating to the imposition
of a penalty, apply in case of nonpayment, late payment, or underpayment of
estimated tax. For purposes of applying the interest provisions of section 57-38-45,
interest accrues on a per annum basis from the due date of an installment to the
fifteenth day of the fourth month following the end of the current taxable year or, with
respect to any portion of the estimated tax required to be paid, the date on which the
portion thereof is paid, whichever date is earlier. Notwithstanding the other provisions
of this section, no interest is due if the estimated tax paid on or before each due date
under section 57-38-63 by a corporation is based on the annualized or adjusted
seasonal method under section 6655 of the Internal Revenue Code. Notwithstanding
the other provisions of this section, no interest is due if the estimated tax of an
individual, estate, or trust is less than one thousand dollars per income tax return filed.
4. For purposes of this section, "estimated tax" means the amount that a taxpayer
estimates to be income tax under this chapter for the current taxable year less the
amount of any credits allowable, including tax withheld.
5. For purposes of this section, "net tax liability" means the amount of income tax
computed for the taxable year as shown on the return less the amount of any credits
allowable except tax withheld and estimated tax paid.
6. An individual or corporation may apply a tax overpayment from a preceding taxable
year as an estimated tax payment on the individual's or corporation's behalf for the
taxable year succeeding the overpayment. The individual or corporation may elect to
apply the overpayment to specific estimated tax installments. If the individual or
corporation does not specify the installment period toward which the overpayment is to
be applied, the individual or corporation must be considered to have elected to apply
the overpayment toward the first required estimated tax installment for the succeeding
taxable year.