Examination by tax commissioner - Penalty for improper returns
N.D. Cent. Code § 5-03-06
in effect5-03-06. Examination by tax commissioner - Penalty for improper returns
The state tax commissioner may at any reasonable time make an examination of the books
and premises of any retailer, wholesaler, manufacturer, domestic winery, domestic distillery,
microbrew pub, direct shipper, licensed alcohol carrier, licensed logistics shipper, or other
person to determine if the person has fully complied with all statutes and rules pertaining to the
person's business. If any manufacturer, wholesaler, domestic winery, domestic distillery,
microbrew pub, or direct shipper liable for any taxes imposed by this chapter fails to pay such
tax on the date payment is due, there must be added to the tax a penalty of five percent of the
total amount of the tax or five dollars, whichever is greater, plus interest of one percent of the
tax per month or fraction of a month of delay, except the first month after the return or tax
became due. Any manufacturer, wholesaler, domestic winery, domestic distillery, microbrew pub,
direct shipper, licensed alcohol carrier, or licensed logistics shipper failing to furnish reports
when required must be assessed a penalty of one hundred dollars for each day such reports are
delinquent. The state tax commissioner may forgive all or part of any penalty for good cause
shown. The tax commissioner shall give notice of the determination to the person liable for tax.
If the determination of tax due relates to an incorrect or insufficient return filed by a taxpayer,
notice of the determination must be given not later than three years after the last day on which
the return was due or three years after the return was filed, whichever is later. If it is determined
upon audit by the tax commissioner that the tax due was twenty-five percent or more above the
amount reported on the return, notice of determination of tax due must be given not later than
six years after the last day on which the return was due or six years after the return was filed,
whichever is later. Notice of determination of tax due for any reporting period for which a
taxpayer failed to file a return must be given not later than six years after the due date of the
return, but if fraudulent information is given in a return or the failure to file a return is due to the
fraudulent intent or willful attempt of the taxpayer in any manner to evade the tax, the time
limitation provided in this section for giving notice of the determination of tax due does not apply.
If any manufacturer, wholesaler, domestic winery, domestic distillery, microbrew pub, or direct
shipper files a fraudulent return, there must be added to the tax an amount equal to the tax
evaded or attempted to be evaded and such manufacturer, wholesaler, domestic winery,
domestic distillery, microbrew pub, or direct shipper is also guilty of a class C felony. All such
taxes and civil penalties may be collected by assessment or distraint, and no court of this state
may enjoin the collection of any such tax or civil penalty. No wholesaler may purchase alcoholic
beverages from a manufacturer after notice from the tax commissioner that such manufacturer
has failed to file required reports with the tax commissioner's office. Any manufacturer,
wholesaler, domestic winery, domestic distillery, microbrew pub, direct shipper, licensed alcohol
carrier, or licensed logistics shipper may have its license suspended or revoked for violation of
any of the provisions of this title after a hearing conducted similar to that prescribed by this law.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://ndlegis.gov/cencode/t05c03.pdf#nameddest=5-03-06Fetched: 10/16/2026