North Dakota Administrative Code
Title 81 - Tax Commissioner
Article 81-03 - Income Taxes and Privilege Taxes Based on Income
Chapter 81-03-05.2 - Water's Edge Method
Section 81-03-05.2-07 - Procedure for review of tax commissioner's recision of water's edge election

1. The commissioner shall notify a taxpayer if there is a decision to rescind the taxpayer's water's edge election. The notice of recision must be sent to the taxpayer by certified mail with a return receipt requested, and it must state the reasons for the recision.

2. The notice of recision becomes final and irrevocable thirty days after the date the notice is received by the taxpayer unless within that thirty-day period the taxpayer files a written protest with the commissioner. The protest which will be deemed filed on the date it is sent by certified mail must state the grounds upon which the protest is based.

3. If a protest is filed, the commissioner shall reconsider the notice of recision. This reconsideration may include further examination by the commissioner of any affiliated corporation's books, papers, records, or memoranda pursuant to North Dakota Century Code sections 57-01-02, 57-38-56, and section 81-01.1-01-03.

4. Upon request, the commissioner may grant the taxpayer an informal conference.

5. Within a reasonable time after receiving the protest, the commissioner shall notify the taxpayer as to whether the decision to rescind the taxpayer's water's edge election is affirmed or reversed. Notice of this reconsideration must be sent to the taxpayer by certified mail with a return receipt requested. A decision to affirm becomes final and irrevocable thirty days after the notice of reconsideration has been received by the taxpayer unless, within that thirty-day period, the taxpayer seeks formal administrative review by filing a complaint and requesting an administrative hearing. The provisions of North Dakota Century Code chapter 28-32 will apply to and govern the filing of the complaint and the administrative hearing, including an appeal of the decision rendered by the commissioner.

6. Upon written request, the commissioner may grant an extension of time to file a protest or a complaint.