North Dakota Unfiled Sales Tax Returns Checklist
Introduction
If you operate a business in North Dakota and have not filed one or more sales tax returns, the
North Dakota Office of State Tax Commissioner will eventually take action to collect unpaid taxes or bring your account into compliance. An unfiled sales and use tax return occurs when a business required to register for and collect sales tax fails to submit returns by its filing deadline.
What This Issue Means
An unfiled sales tax return means you have not submitted a required monthly or quarterly return to North Dakota for a specific period, even if no sales occurred during that time. The state records show a gap in your filing history for one or more reporting periods. This is a tax compliance matter that requires immediate attention.
Why the State Requires This
North Dakota requires all registered sales tax vendors to file sales and use tax returns on a regular schedule, regardless of whether they made taxable sales. The state uses filed returns to track tax compliance, collect revenue, and maintain accurate business records. When returns go unfiled, the state has no record of your sales activity for those periods.
What Happens If This Is Ignored
If unfiled sales tax returns remain unaddressed, the state may escalate collection action through repeated notices, tax penalties and interest charges, potential placement of a tax lien on business assets, or referral to a collection agency. Ignoring the issue does not make the tax debt go away and will likely increase the total amount owed.
Checklist: What to Do After Receiving an Unfiled Sales
Tax Return Notice
Step 1: Locate and Review the State Notice
Check your mail, email, and business voicemail for any communications from the North Dakota
Office of State Tax Commissioner. If you received a notice, read it carefully and note the specific tax periods listed as unfiled and any deadline dates mentioned.
Step 2: Gather Business Records for the Missing Periods
Collect sales records, invoices, and accounting documents for each unfiled period. Organize records by month or quarter, depending on your filing frequency. Include records of any sales tax exemption certificates and documentation for taxable items sold during those periods.
Step 3: Determine Your Filing Frequency
Review your sales tax registration certificate or account letter from the state to confirm whether you are required to file monthly, quarterly, or annually. If you are unsure, contact the North
Dakota Office of State Tax Commissioner directly to verify your filing schedule.
Step 4: Calculate Estimated Sales and Tax Owed
Add up total gross sales for each unfiled period using your business records. Identify which sales were subject to North Dakota sales and use tax, which is currently a five percent state rate plus any applicable local taxes levied by cities or local jurisdictions. Apply the correct tax rate to taxable items sold.
Step 5: Contact the North Dakota Office of the State Tax Commissioner
Call the sales tax section at 701-328-1246 during business hours with your sales tax permit number and business name ready. Explain that you have unfiled returns and ask for specific periods owed. Request written confirmation of the unfiled periods and clarify the filing deadline.
Step 6: File All Missing Returns
Access the North Dakota Office of State Tax Commissioner online system or request paper forms if you cannot file online. Complete one return for each unfiled period, reporting all sales and use tax information. If you had zero sales during a period, file a zero return reporting zero dollars.
Step 7: Verify the State Received Your Returns
After filing, wait approximately 1 week, then log in to your sales tax account online to confirm that the returns appear in the system. If you filed by mail, call 701-328-1246 to confirm receipt.
Make a note of the date the state confirmed receipt.
Step 8: Pay Any Taxes Owed
After filing, the state will send a billing notice if taxes, tax penalties, or interest are due. Review the billing notice and verify the amounts against your own records. If you disagree with the amount, document your objection and contact the state immediately to discuss.
Step 9: Explore Payment Options If You Cannot Pay in Full
If you cannot pay the full tax debt immediately, contact the collections section at 701-328-1244 to discuss options. North Dakota may offer an Installment Agreement to spread payments over time. Request information about any available tax relief programs or penalty abatement if you have reasonable cause for late filing.
- Missing the deadline in the initial notice: If the state gave you a specific deadline to
- Not filing a zero return for periods with no sales: The state still requires a return even
- Filing incomplete or inaccurate returns: Double-check your sales figures and use tax
- Not keeping copies of filed returns: Always maintain your own record of what you
- Paying the state without confirming what you owe: Before paying, make sure 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 10: Set Up a System to Avoid Future Unfiled Returns
Mark your calendar or set reminders for your next filing deadline to ensure tax compliance.
Decide whether to file online, by mail, or through a tax professional such as an enrolled agent
Set aside time each month to gather sales records so filing is easier next time.
Understanding Collection Actions and Tax Relief Options
The North Dakota Office of State Tax Commissioner has authority under state tax law to pursue various collection actions for unpaid tax debt. These actions may include placing a tax lien on your real or personal property, which becomes a public record and may affect your credit. The state may also pursue wage garnishment or bank account levies in serious cases.
If you are facing financial hardship, consider tax resolution options. Penalty abatement may be available if you can demonstrate reasonable cause for failing to file on time. In limited circumstances, the state may consider the Currently Not Collectible Status if you cannot pay due to financial hardship.
Common Mistakes to Avoid respond, meet it because missing that date can trigger additional tax penalties or escalated collection action. if you made no taxable sales, so leaving a period blank is not the same as zero filing of a return. calculations before submitting, because incorrect information may require you to file an amended return later. submitted to the state because this protects you if there is a dispute later. understand which periods are covered and why the amount is correct to avoid unnecessary tax debt accumulation.
Frequently Asked Questions
Do I have to file a sales tax return if I had no sales during a period?
North Dakota requires registered vendors to file sales and use tax returns for each reporting period, even if sales were zero. This zero-filing return must be submitted to maintain tax compliance with state tax law.
What if I cannot find my sales records for a missing period?
Contact the North Dakota Office of the State Tax Commissioner immediately and explain the situation. The state may ask you to reconstruct sales based on bank records, supplier invoices, or other documentation available to you.
Can I set up a payment plan if I cannot pay the full amount owed at once?
North Dakota does offer an Installment Agreement in some cases for taxpayers who cannot pay the full tax debt immediately. Contact the collections section at 701-328-1244 to discuss payment plan options and determine whether you qualify based on your specific circumstances.
When should I seek professional help from enrolled agents or tax professionals?
Consider consulting enrolled agents or tax professionals if you have multiple unfiled periods, significant tax debt, or complex sales tax situations involving online marketplaces or fulfillment centers. Professional assistance with tax resolution can help you navigate penalty abatement requests and negotiate payment arrangements.
Closing
Unfiled sales and use tax returns are a serious tax compliance issue that can escalate quickly if left unaddressed. Taking action now will stop collection notices, prevent additional tax penalties, and bring your account into compliance with North Dakota tax law. Reach out to the North
Dakota Office of State Tax Commissioner if you need help understanding your account status or exploring tax relief options.
Received a State Tax Notice?
If you’ve received a state tax notice and aren’t sure how to respond, we can help you review your options and next steps.
20+ years experience • Same-day reviews available
