North Dakota Recognition of Federal Extensions Due to Disaster Situations
In the event that the Internal Revenue Service (IRS) grants an extension of filing and payment deadlines for federal tax purposes because of a natural or manmade disaster, North Dakota automatically recognizes the federal extension for North Dakota tax purposes.
This automatic recognition of the federal extension applies to income tax, sales and use taxes, oil and gas taxes, alcohol taxes, fuel taxes, alcohol and tobacco taxes, and any other tax administered by the North Dakota Office of State Tax Commissioner. It applies to any taxpayer who qualifies for the federal extension relief, as provided in the official IRS announcement.
Eligible taxpayers have until the last day of the federal extension period to file their North Dakota returns or make any required tax payments that have a due date falling within the federal extension period. Relief may be applicable for penalty or interest for late filing or payment charged during this special extension period.
To assist the Office of State Tax Commissioner in recognizing returns for which this relief is sought, taxpayers should provide a letter with their return or payment in which they (1) identify the disaster for which the federal extension was provided, (2) identify the federal extension period granted by the IRS, and (3) briefly explain how they were affected by the disaster. Taxpayers who file or pay using electronic methods should attach a copy of the letter in a PDF format to the return. Taxpayers who file or pay using paper forms should write at the top of their North Dakota return the "Disaster Designation" provided in the official IRS announcement. For example, "Hurricane Katrina." Taxpayers should retain the letter in their tax records in case they are contacted by the North Dakota Office of State Tax Commissioner regarding their return or payment.
Taxpayers who are eligible for this relief who receive a notice or billing for penalty, interest, or both, should contact the North Dakota Office of State Tax Commissioner for assistance using the phone number or address provided on the notice or billing statement. For additional contact information, including e-mail addresses, click on Contact Info at the very bottom of the page.
For information on the extensions granted by the IRS in response to disasters, visit the IRS.
Disaster Remediation Tax Exemptions for Out-Of-State Businesses
Exemptions from state and local tax filing and payment obligations are available to out-of-state businesses and their employees who are in North Dakota on a temporary basis for the sole purpose of repairing or replacing critical infrastructure that is damaged, or under threat of damage, from a state- or presidentially-declared disaster or emergency. “Critical infrastructure” means real and personal natural gas, electrical, and telecommunication transmission property so vital that the incapacity or destruction of that transmission system would impact public health or safety and the economic and physical security of the state or region. This qualifying work is referred to as disaster or emergency remediation work.
An out-of-state business that enters North Dakota to perform disaster or emergency remediation work must provide a separate written notification to each of the following state agencies to inform them of its presence in North Dakota for this purpose: Office of State Tax Commissioner, Job Service North Dakota (state unemployment), North Dakota Secretary of State (business registration), and North Dakota Workers Safety and Insurance (workers compensation). For each agency’s notification procedure and other information pertinent to the agency, separately contact each agency.
Reference: N.D.C.C. ch. 37-17.5
For more information on the tax relief available for taxes, fees, and filing requirements administered by the Office of State Tax Commissioner, see the Tax Relief for Disaster or Emergency Remediation Work by Out-Of-State Businesses Guideline.
Notification Form – To notify the Office of State Tax Commissioner, complete and file the form Out-Of-State Business Disaster or Emergency Remediation Work Notification.