North Dakota State Tax Enforcement Collections
Timeline Checklist
Introduction
State tax enforcement in North Dakota occurs when the Office of State Tax Commissioner initiates collection action against a taxpayer for unpaid tax debt. This process begins after initial billing efforts have been made and the taxpayer has not responded or paid the amount owed.
Enforcement actions follow a defined process that taxpayers can track and respond to at each stage using available resources and help guides.
What This Issue Means
State enforcement by the Office of State Tax Commissioner represents an active attempt to collect a tax debt through formal administrative procedures. The state has moved beyond initial billing notices and is now using collection tools available under North Dakota tax law.
Enforcement can include notices, wage garnishment, bank levies, or liens, depending on the stage of collection and amount owed.
Why the State Issued This Requirement
The state initiates enforcement when a tax debt remains unpaid after initial notices have been sent and payment deadlines have passed. Common triggers include failure to pay taxes shown on a filed return, accumulated penalties and interest, or taxes determined through an audit. The
Office of State Tax Commissioner follows established collection procedures to recover unpaid state tax revenue while providing taxpayers notice and opportunity to respond.
North Dakota Active Collections Timeline Checklist
Step 1: Identify the Enforcement Action
Review the notice from the Office of State Tax Commissioner to understand what collection action is being taken. Locate the notice type, total amount owed including penalties and interest, payment deadline, and contact information for the collections unit.
Step 2: Confirm Taxpayer Information
Verify the notice is addressed to you or your business and that all identification information is accurate. Check that your name, Social Security number or employer identification number, and tax type match your records to ensure proper case identification.
Step 3: Review Tax Debt Details
Examine what taxes, penalties, and interest make up the total amount owed by identifying the tax type, tax year, original tax amount, fines, and interest charges. Confirm all components add up correctly, noting that interest continues to accumulate until the outcome is reached.
Step 4: Determine Enforcement Type
Identify which collection tool the state is using by looking for notices of intent, wage garnishment language, bank levy information, lien language, or offset notices. The state typically begins with notices and, if payment is not made, progresses to wage garnishment or levies.
Step 5: Confirm Response Deadline
Identify all deadlines mentioned in the enforcement notice, including payment deadlines, response deadlines, and administrative hearing deadlines. For tax assessments, taxpayers have thirty days to file a protest after receiving a Notice of Determination.
Step 6: Gather Supporting Documents
Collect all documents related to the tax debt or enforcement action, including the original return or assessment, payment records, previous correspondence, and supporting documents.
Organized documentation with proper digital data storage makes it easier to understand the debt and respond effectively.
Step 7: Choose Your Response Option
Review your options and decide how to proceed based on search results from your case review.
You can pay the debt in full, request an administrative hearing if you believe the assessment is incorrect, request a payment plan, request penalty abatement, or seek professional assistance.
Step 8: Make Payment if Applicable
Follow the payment instructions on the notice by locating the mailing address, phone number, or online payment portal for payment processing. Make the payment using the accepted method and keep records, including the receipt, confirmation number, or a cancelled check image, in your digital data storage system.
Step 9: Request a Hearing if Disputing
File a written protest within thirty days after receiving the Notice of Determination, explaining why you believe the debt is incorrect. Include supporting documents and submit by the deadline to the District Court or the administrative hearing officer, keeping proof of submission, such as a certified mail receipt.
Step 10: Arrange Payment Plan if Needed
Contact the collections unit at 701-328-1244 or collectionstax@nd.gov to discuss installment payment options. The Tax Commissioner has discretion to offer payment plans based on individual circumstances, and you may need to provide financial information demonstrating your ability to make scheduled payments.
Step 11: Monitor Account Status
Regularly check the status of the enforcement action and account balance by contacting the
Office of the State Tax Commissioner for search results on your case. Request written confirmation that the debt has been paid or enforcement has ceased, documenting the outcome for your records.
- Missing deadlines: Not responding by the deadline prevents you from requesting a
- Not keeping payment proof: Paying without proof creates confusion if the state does
- Ignoring garnishment notices: The state must provide at least ten days' notice before
- Not requesting hearings when disputing: If you believe the amount is wrong, you
- Failing to communicate changes: If your situation changes due to job loss, hardship,
- Not using case search tools: Failing to check public case search records means you
- State tax notice review and response
- Penalty and interest reduction options
- Payroll and trust fund tax assistance
- Payment plan and relief eligibility review
- Representation with state tax agencies
Step 12: Maintain Documentation
Keep complete records of all actions taken and communications with the state by saving all notices and correspondence in a secure digital data storage system. Record dates, times, and names of people you speak with, and retain payment processing records for verification purposes.
Understanding Collection Agency Involvement
If your case escalates, the Office of State Tax Commissioner may refer your debt to a collection agency authorized under the North Dakota Collection Agency Bond requirements. Collection agencies operating in North Dakota must be licensed and bonded, and they must follow state law when collecting tax debts on behalf of the state. You retain all taxpayer rights even when a collection agency is involved in the collection process.
Legal Action Through District Court
The Office of State Tax Commissioner may pursue legal remedies through the District Court or municipal court if administrative collection efforts are unsuccessful. The Attorney General brings these actions to enforce payment of taxes and penalties or to foreclose liens on behalf of North
Dakota. Court proceedings become part of the public record, and taxpayers should consider seeking legal representation if their case reaches this stage.
Case Search and Public Records
Tax liens filed by the Office of State Tax Commissioner become public records indexed in the central indexing system maintained by the Secretary of State. These liens may appear in search results from lenders, employers, or credit reporting agencies, potentially affecting credit scores and financial opportunities. Once paid, the Tax Commissioner indexes a satisfaction of lien to clear the public record and document the outcome.
Understanding Restricted Case Information
Certain tax case information remains confidential under North Dakota law and is classified as restricted. The Office of the State Tax Commissioner maintains the confidentiality of the information supplied on individual income tax, corporation income tax, and sales and use tax returns. This information may be released only with written authorization from the taxpayer or as required by law.
Common Mistakes to Avoid hearing and allows enforcement to proceed. Taxpayers must file protests within thirty days of receiving a Notice of Determination to preserve appeal rights and avoid an unfavorable outcome. not record payment processing correctly. Always retain receipts, confirmation numbers, and cancelled check images as evidence, storing them securely using digital data storage systems. issuing a garnishment summons for earnings under North Dakota law. Acting before garnishment begins is much easier than stopping it afterward through District Court intervention. must request a hearing by the deadline stated in the notice. Waiting too long eliminates this option and renders the assessment final, limiting your ability to challenge the outcome. or relocation within North Dakota, notify the collections unit promptly to prevent unnecessary escalation and explore alternative payment arrangements. may not know if liens have been filed against your property. Regular case search monitoring helps you stay informed about enforcement actions.
Frequently Asked Questions
Does State Enforcement Mean Criminal Prosecution?
State enforcement is a civil administrative process to collect unpaid taxes and does not automatically mean criminal prosecution has been filed. Criminal cases are separate proceedings, not automatically part of enforcement action, though they can exist independently in serious cases of tax fraud.
Can Wage Garnishment Happen Without Warning?
Under North Dakota law, the state must provide at least 10 days' notice before issuing a garnishment summons for earnings. The notice period is brief, so responding quickly to any garnishment notice is important to protect your income and negotiate alternative arrangements.
What if I cannot afford to pay?
Contact the collections unit immediately at 701-328-1244 to discuss your financial situation and explore available options. Payment plans may be available based on individual circumstances, and the Tax Commissioner has discretion to consider the ability to pay when determining the outcome.
How Can I Access My Case Information?
You can request search results for your case by contacting the Office of State Tax
Commissioner directly. Some lien information may also appear in public case search databases maintained by the Secretary of State, though detailed tax return information remains restricted.
Where Can I Find Additional Help?
The Office of State Tax Commissioner provides help guides and resources on their website at tax.nd.gov. You can also contact their collections unit by phone at 701-328-1244 or email at collectionstax@nd.gov for personalized assistance with your North Dakota tax enforcement matter.
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