Taxpayers who cannot pay their complete tax obligation to North Dakota—from individual income, business income, or other sources—may request a structured payment arrangement through the Office of the State Tax Commissioner. Payment plans are available through the ND TAP online portal and by mail. These agreements allow eligible individuals and businesses to satisfy their tax obligations in installments, avoiding more severe enforcement actions such as tax liens, wage garnishments, or state refund offsets. Filing all required returns and submitting a timely payment plan request is considered a good-faith effort, which may improve eligibility for penalty and interest relief.
Even if full payment is not possible for the current tax period, filing all returns by the statutory deadline is critical to avoid additional penalties and interest. When completing the payment plan request, applicants must provide financial and identifying information—including Social Security Number or Employer Identification Number, filing status, and tax liability details. Upon approval, the taxpayer will receive confirmation of the payment schedule and may choose among available payment methods, including electronic withdrawals and debit card transactions. Continued compliance with future filing and payment obligations is required to maintain the agreement and remain in excellent standing with the Department.
This guide provides a step-by-step overview of the payment plan process, including documentation requirements, application procedures, and guidance on maintaining compliance after approval. It also addresses how interest accrues during the agreement period, how to communicate with the Collections Section, and what to expect in the event of a default. By adhering to the terms of an approved installment plan, taxpayers can resolve outstanding tax liabilities while avoiding additional enforcement measures under North Dakota tax law.
Paying your entire tax liability in a single transaction through ND TAP or mail resolves all outstanding balances simultaneously. You’ll need sufficient funds in your bank account to cover the full amount owed, including any penalty and interest charges applied to late-filed returns.
Selecting a full payment immediately halts additional interest charges and eliminates the need for setup fees or installment-agreement paperwork. However, this option requires a lump sum, which may be impractical if you lack the necessary funds in your bank account.
A payment plan is a formal agreement with the Collections Section of the North Dakota Office of State Tax Commissioner to spread payments over time. This installment agreement allows you to pay smaller, manageable monthly amounts, demonstrating your commitment to resolving your tax debt.
While a payment plan helps you avoid severe collection actions—such as liens or refund offsets—interest continues to accrue 12% per year on the unpaid balance. Missing a scheduled payment can lead to default, so timely payments are crucial.
Under North Dakota Century Code 57-20-10, you may pay state taxes in installments of at least 10% of the original tax amount, plus any applicable penalty and interest. Each installment must be at least $10.
By making installment payments, you reduce the principal balance with each payment, lowering future interest charges and penalties on the remaining amount. This flexible payment option is beneficial if you can’t meet the 100% payment requirement but can manage smaller, regular payments.
The following types of state tax debt may qualify for a payment plan with the North Dakota Office of State Tax Commissioner:
Individual income tax covers the personal earnings you report on your tax return each year. Qualifying for a payment plan on this debt can help you manage taxes owed without facing immediate collection actions from the state tax commissioner.
Business income tax applies to profits earned by sole proprietorships, partnerships, and corporations operating in North Dakota. An installment agreement for business income tax allows you to keep your operations running smoothly while spreading your liability into affordable monthly payments.
Sales and use tax is collected on goods and services you sell or bring into the state. Setting up a sales and use tax payment plan ensures you stay compliant with filing status requirements and avoid penalties on amounts owed.
Withholding tax is the amount employers deduct from employee paychecks for state income tax purposes. If your business falls behind on remitting withholding tax, an approved payment option can prevent liens and demonstrate good faith under the taxpayer bill.
This category includes specialty taxes such as fuel, tobacco, and lodging taxes that the North Dakota Office oversees. Qualifying for an installment agreement on these debts allows you to resolve diverse state tax obligations without risking severe collection measures.
To be eligible for a payment plan, you generally must:
Being current on your income tax returns means you’ve submitted every tax return by its due date. This shows the North Dakota Office of State Tax Commissioner that you comply with filing status requirements and reduces the risk of being denied an installment agreement.
Demonstrating that you cannot cover your total tax liability in a single payment helps the Collections Section understand your financial situation. Showing this need makes you eligible for a payment option that breaks your debt into manageable monthly installments.
Based on your income and expenses, you must prove you can afford the proposed payment amount each month. Establishing a realistic budget and sharing your financial information reassures the state tax office that you’ll maintain your payment plan and avoid default.
Your request is strengthened by a track record of timely payments and accurate filings with the North Dakota Office of State Tax Commissioner. A positive compliance history indicates good faith and increases the likelihood that your payment plan application will be approved.
Payment plans typically range from six months to two years, depending on your total tax year liability, proposed monthly payment amount, and overall compliance record. The Collections Section evaluates each request's merits and may adjust the duration based on your financial information.
Call the Collections Section at 701-328-1244 to initiate your request or email collectionstax@nd.gov. Prepare to discuss your outstanding balance, filing history, and payment capacity.
Before you apply, prepare the following details:
Gather your full name exactly as it appears on your income tax returns, your current mailing address, Social Security Number or Tax ID, and a contact phone number. Having these details ready ensures the Collections Section can verify your identity quickly and match your request to the correct taxpayer account without delays.
Identify the tax return types you owe—individual income tax, business income tax, sales and use tax, or withholding tax—and note the tax year(s) involved. Review your most recent tax return or ND TAP account statement to determine the total amount owed, including any accrued penalty and interest charges, and have any notices or vouchers on hand for reference.
Prepare a summary of your monthly income sources (wages, self-employment, etc.) and essential expenses such as rent or mortgage, utilities, and insurance. If you plan to set up free electronic withdrawals, have your bank account and routing numbers ready; if you prefer a debit card or money order, confirm available funds or card limits to demonstrate your ability to maintain regular monthly payments.
You can submit your payment plan request by:
Log in to the North Dakota Taxpayer Access Point (ND TAP) at apps.nd.gov/tax/tap and choose “Payment Plan.”
Provide your details to the Collections Section representative by calling 701-328-1244.
Send your information and proposed payment terms to collectionstax@nd.gov.
Negotiate the monthly payment amount, start date, and plan length. Be transparent about your budget and any upcoming changes to avoid surprises that could lead to default.
Your contract will specify your monthly payment and due date. Knowing these details upfront helps you budget effectively and avoid accidental late payments.
The plan’s duration indicates how many months you will make payments before your debt is fully resolved. Understanding the timeline ensures you can plan for other financial obligations and prevent surprises about when the balance will be cleared.
Interest continues to accrue on any unpaid balance at 12% per year, and specific payment methods—like credit or debit cards—may incur convenience fees. Knowing these ongoing costs helps you choose the most economical payment option and estimate your total repayment amount.
The agreement will outline actions the Collections Section may take if you miss a payment or default, such as filing a lien or offsetting future refunds. Knowing these penalties in advance motivates timely payments and highlights the importance of maintaining current tax filings.
Once your application is reviewed, the Collections Section will send an approval letter or email detailing the finalized payment terms.
You can authorize free electronic debits against your checking or savings account through the ND TAP portal, ensuring timely payments without manual effort.
If you prefer to use a card, you can make payments by credit or debit; however, convenience fees will apply.
Print a payment voucher from ND TAP and mail your check or money order to the Collections Section. Always include the voucher to ensure proper credit to your account.
Interest accrues on the unpaid balance at 12% per year, compounded monthly. Any late-filing penalties applied before you set the plan will remain effective until fully resolved.
Mark payment due dates on your calendar and set alerts to avoid missing deadlines.
Automate payments through ND TAP to reduce the risk of forgetting to submit your monthly installment.
To remain in good standing, continue to file and pay all new income tax returns by their due dates.
Submit your quarterly estimated payments if your income requires them to avoid additional penalties and interest.
Missing payments can trigger default and resume collection actions. Contact the Collections Section immediately to discuss alternatives. If you anticipate a late payment
Errors in your personal or financial data can delay approval. Double-check all details before submitting them and update any changes promptly.
Always read the notices of the North Dakota Office of State Tax Commissioner and respond by the deadline. Keeping an organized file of correspondence helps you track deadlines and requirements.
Balancing old debt payments with new taxes can be challenging. If you struggle, consider consulting a tax professional to explore options like compromise or waiver requests under the Taxpayer Bill of Rights.
Addressing your tax debt promptly minimizes additional interest and penalty growth, prevents liens that can harm your credit score, and stops potential refund offsets.
Contact the Collections Section at 701-328-1244 or collectionstax@nd.gov, or visit ND TAP to file returns and apply for a payment plan online. Demonstrating a proactive approach shows good faith and may lead to more favorable terms.
Most North Dakota payment plans last six months to two years based on your total taxes owed, proposed monthly payment, and compliance history with income tax returns and filing status requirements. The Collections Section at the state tax office evaluates each request individually. They may approve shorter or extended durations when you apply online or submit financial information demonstrating the ability to pay anticipated liabilities.
There is no setup fee for North Dakota state tax payment plans, but unpaid balances accrue 12% annual interest charges, compounded monthly. Using a credit or debit card for payment online incurs additional convenience fees, while free electronic withdrawals via your bank account remain fee-free. Any penalty charges applied before you apply online or by mail will continue until your taxes owed are fully resolved.
North Dakota state tax payment plans and IRS installment agreements are separate processes administered by different agencies. You must apply online or by mail to each office—the North Dakota state tax commissioner for North Dakota and the IRS for federal obligations—and maintain both payments independently. Understand each plan’s interest rate, repayment terms, and penalty and interest charges to manage your taxpayer bill and avoid defaults or liens.
If you cannot afford the minimum payment under your installment agreement, contact the North Dakota Office of State Tax Commissioner immediately at 701-328-1244 or via email with your Social Security Number and financial information, such as income, expenses, and bank account details. The Collections Section may request additional documentation and reassess your payment plan online or by mail to adjust terms based on your hardship.
Once you enter into an approved payment plan with the North Dakota state tax office, active collection actions—such as tax liens, wage garnishments, or refund offsets—are generally paused. However, interest and penalty charges will continue to accrue on taxes owed. If you default on your plan, the Collections Section may resume collection under the tax return process and pursue liens again.
Yes, under the North Dakota Taxpayer Bill of Rights, you can request a waiver of penalty and interest charges for good cause. Contact the Collections Section or file a written request with your Social Security Number, tax year details, and supporting documentation—such as evidence of illness or natural disaster—to demonstrate hardship. If eligible, the state tax commissioner may approve partial or complete relief.
If your financial situation changes during your payment plan, contact the North Dakota Office of State Tax Commissioner at 701-328-1244 or submit a payment plan online modification request via ND TAP. Provide updated financial information—such as income, expenses, bank account details—and any additional documentation the Collections Section requires. They will review your request, assess your hardship, and adjust your installment agreement accordingly.
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