North Dakota Administrative Code
Title 81 - Tax Commissioner
Article 81-01.1 - Practice and Procedure
Chapter 81-01.1-01 - General Provisions
Section 81-01.1-01-02 - Definitions

As used in this article and in the provisions of North Dakota Century Code title 57, unless otherwise required, all terms and phrases have the same meaning as defined in the North Dakota Century Code, and, in addition:

1. "Assessment" means the determination and imposition of tax by the tax commissioner of any state tax due and owing based upon information on a tax return, upon information obtained through an audit, or upon the best information available. The term does not include a self-assessment made by a taxpayer on a tax return, a calculation of tax made by a taxpayer with the assistance of the tax commissioner, or an adjustment made due to a mathematical or clerical error on a tax return.

2. "Audit" means an examination or investigation by the tax commissioner to determine the accuracy of information on a tax return or to determine whether a tax liability exists.

3. "Determination" means a decision by the tax commissioner on a refund or an assessment of tax. The term does not include a self-assessment made by a taxpayer on a tax return, a calculation of tax made by a taxpayer with the assistance of the tax commissioner, or an adjustment made due to a mathematical or clerical error on a tax return.

4. "Field audit" means any audit where taxpayer's books and records are examined at the taxpayer's place of business.

5. "Mathematical error" or "clerical error" means:

a. An error in addition, subtraction, multiplication, or division shown on any tax return.

b. An incorrect use of any table provided by the tax commissioner with respect to any tax return if such incorrect use is apparent from the existence of other information on the tax return.

c. An entry on a tax return of an item that is inconsistent with another entry of the same or another item on such tax return.

d. An omission of information that is required to be supplied on the tax return to substantiate an entry on the tax return.

e. An entry on a tax return of a deduction or credit in an amount that exceeds a statutory limit.

6. "Notice" means a communication in writing issued by the tax commissioner or the taxpayer.

7. "Notice of determination" means notice provided by the tax commissioner to the taxpayer, pursuant to subsection 3 of North Dakota Century Code section 57-38-39, North Dakota Century Code sections 57-39.2-15, 57-40.2-13, and 57-40.3-12, and subsection 3 of section 81-09-02-02.

8. "Notice of reconsideration" means notice to taxpayer pursuant to subsection 5 of North Dakota Century Code section 57-38-39, subsection 8 of North Dakota Century Code section 57-38-40, subsection 6 of section 81-09-02-02, and subsection 7 of section 81-09-02-03.

9. "Notice of refund change" means notice provided to the taxpayer, as provided in subsection 10 of North Dakota Century Code section 57-38-40, North Dakota Century Code section 57-39.2-25, and subsection 3 of section 81-09-02-03, that all or part of the requested refund is denied.

10. "Office audit" means any audit where a taxpayer's books and records are examined in the tax commissioner's office.

11. "Tax form" means a document prescribed by the tax commissioner requesting specific information, and includes a document submitted to the tax commissioner by means of electronic transmission, such as wires, cables, electromagnetic waves, light waves, or similar media now in existence or that may be devised.

12. "Tax return" means a tax form containing facts required and sufficient information from which the tax commissioner can determine a tax liability and includes information returns. The terms "tax form" and "tax return" are not synonymous.

13. "Taxpayer" means an individual, partnership, firm, corporation, joint venture, association, estate, fiduciary, trust, receiver, or any other group or combination acting as a unit and the plural as well as the singular number who is or may be required to file a tax return under North Dakota Century Code title 57.

General Authority: NDCC 28-32-02

Law Implemented: NDCC 57-01-02, 57-01-11