North Dakota Amended Corporation Income Tax Return

Amended Corporation Income Tax Return
Form 40X - Amended Corporation Income Tax Return
North Dakota Office of State Tax Commissioner

Form 40X Amended Corporation Income Tax Return
, and ending

Calendar Year or Fiscal Year beginning
Name



L02
(Rev. 2016)

,

Federal employer identification number*




Name the original Form 40 was filed under

Mailing Address


Telephone number

City, State, ZIP Code

Reason for changes:
RAR
Other


Income and deductions
1 Income
Fill in the circle for the original tax return filing method
a.
b.
b1.
b2.
c.
c1.
2 Total additions

A

B

C

As originally reported
or as adjusted

Net change
increase or (decrease)

Correct amount

1

(M)

2

(N)

3

(P)

d.

3 Total subtractions
4 North Dakota apportionable income (subtract line 3 from the
sum of lines 1 and 2)
5 North Dakota apportionment factor
6 Multiply line 4 by line 5 for income apportioned to North Dakota
7 Income, less related expenses, allocated to North Dakota
8 North Dakota income (add lines 6 and 7)
9 Federal tax deduction (tax years prior to January 1, 2004)
10 Exempt income for new and expanding business (attach supporting sch.)
11 Exempt income for renaissance zone activity (attach Schedule RZ)

4
5
6
7
8
9
10
11

(R)
(S)
(O)
(A)
(U)

12 Subtract lines 9, 10 and 11 from line 8

12

13 North Dakota net operating loss deduction
14 Subtract line 13 from line 12
15 Recapture of federal alternative minimum tax (tax years prior to
January 1, 2004)

13
14

(T)

15

(E)

16 Subtotal (subtract line 15 from line 14)
17 Gross proceeds allocated to North Dakota from sale of North
Dakota tax credits (see instructions)
18 North Dakota taxable income (see instructions)

16

(F)
(V)

17
18

Payment or refund
19
20
21
22
23
24
25
26

Income tax due for amount on line 18, Column C (use tax brackets and rates for year being amended; see below)
North Dakota alternative minimum tax (tax years 1989 and 1990 only)
Surtax on water's edge method election (3.5% of amount on line 18-water's edge filers only 2004 forward)
North Dakota income tax due (add lines 19, 20 and 21)
Tax credits
North Dakota net income tax liability (subtract line 23 from line 22)
North Dakota net income tax liability previously paid after credits
If line 24 is greater than line 25, enter difference as balance due (enter $0 if less than $5)
26a. Interest and penalty for balance due line 26

(C) 19
(B) 20
(Z) 21
22
(Y) 23
(G) 24
(H) 25
(J) 26
(I) 26a
26b

26b. Add lines 26 and 26a for total payment due

(D) 27
(I) 27a
27b

27 If line 25 is greater than line 24, enter difference as overpayment
27a. Interest on overpayment on line 27
27b. Add lines 27 and 27a for amount to be refunded (no refund under $5)
I declare under the penalties of North Dakota Century Code § 12.1-11-02, which provides for a Class A misdemeanor for making a false statement
in a governmental matter, that I have filed an original return and that this amended return, including any accompanying schedules and statements,
has been examined by me and to the best of my knowledge and belief is a true, correct, and complete return.

Date:

Signature of Officer:

Title:

Date:

Signature of Preparer:

Address:

*Privacy Act Notice - See instructions

Mail to: Office of State Tax Commissioner, 600 E. Boulevard Ave., Dept. 127, Bismarck, North Dakota 58505-0599

See tax return for year being amended for
correct tax rates; or visit our website at
nd.gov/tax. Click on Corporate Income,
Corporate Income Tax Rates.



I authorize the
North Dakota
Office of State
Tax Commissioner
to discuss this
tax return with
the preparer.

PLEASE DO NOT WRITE IN THIS SPACE

North Dakota Amended Corporation Income Tax Return Instructions

General instructions
Who must file

A North Dakota Amended Corporation Income Tax
Return, Form 40X, must be filed if:
•	 An amended federal income tax return is filed;
•	 Federal taxable income or federal income tax
liability is changed as a result of a federal audit;
•	 A corporation's North Dakota income is changed
as a result of a North Dakota loss carryback (see
instruction for line 13);
•	 The corporation wishes to correct an error
discovered on a previously filed return; or
•	 The corporation receives a refund of federal
income tax which was deducted on a previously
filed return.
Information relating to an amended return can be
found in North Dakota Century Code §§ 57‑38‑38 and
57‑38-40.

How to prepare an amended return

In order to file a complete Form 40X, a corrected
Form 40, page 1 and supporting schedules, for the
year being amended must be prepared. Complete
Form 40X using specific instructions below and attach
the corrected Form 40, Page 1, and ONLY the North
Dakota Schedules FACT, FACT-1, SA, CR, FTD,
TC, WE, WW, AMT-C and/or AMT­‑R which have
been corrected. Use forms and schedules from the tax
booklet for the year being amended.

Preparer authorization

If the corporation wants to allow the North Dakota
Office of State Tax Commissioner to discuss its tax
return with the preparer who signed it, mark the circle
in the signature area of the return. This authorization
applies only to the individual whose signature
appears in the “Signature of Preparer” section of the
corporation’s return. It does not apply to the firm, if
any, shown in that section.
If the circle is marked, the corporation is authorizing
the North Dakota Office of State Tax Commissioner to

contact the preparer to answer any questions that may
arise during the processing of its return.
The corporation is also authorizing the preparer to:
•	 Give the North Dakota Office of State Tax
Commissioner any information that is missing from
the return,
•	 Call the North Dakota Office of State Tax
Commissioner about the processing of the return or
the status of any related refund or payment(s), and
•	 Respond to certain North Dakota Office of State
Tax Commissioner notices that the corporation
has shared with the preparer about math errors and
return preparation. The notices will not be sent to
the preparer.
The corporation is not authorizing the preparer to
receive any refund check, bind the corporation to
anything (including any additional tax liability),
or otherwise represent the corporation before the
North Dakota Office of State Tax Commissioner.
If the corporation wants to expand the preparer’s
authorization, North Dakota Form 500, Authorization
to Disclose Tax Information and Designation of
Representative, will need to be signed and filed with
our office. North Dakota Form 500 can be found on our
web site at
www.nd.gov/tax. Click on Corporate Income and then
Forms.
The authorization will automatically end 6 months from
the date the amended return is filed.

Where to obtain forms

Forms, schedules and instructions may be obtained by
e-mailing us at [email protected], visiting our website at
www.nd.gov/tax, or calling 701.328.1249.
For the speech and hearing impaired, call Relay North
Dakota at 1.800.366.6888.

Federal attachments required

A complete copy of the amended federal return or
Federal Form 1139 or Federal Revenue Agent Report,
must be attached to the Form 40X.
In addition, if the corporation is included in a
consolidated federal return, the following must be
attached:
•	 A copy of the corporation's amended pro forma
separate company federal return;
•	 Pages 1-4 of the amended consolidated federal
return; and
•	 The schedule of gross income and deductions, by
company, which supports the amended consolidated
taxable income.

Where to file

Completed returns should be mailed to the Office
of State Tax Commissioner, 600 E. Boulevard Ave.,
Dept. 127, Bismarck, ND 58505-0599.

Payment of tax

If tax due is less than $5.00, payment need not be made.
If tax is due, the total payment due must be paid when
the return is filed.
Payment may be made by check or money order to the
North Dakota State Tax Commissioner. Payment for
estimated income tax may be made electronically using
an ACH credit, electronic check, debit card, or credit
card. To make an electronic payment or for information
regarding an ACH credit, go to the department’s web
site at www.nd.gov/tax.
Privacy Act Notification. In compliance with the
Privacy Act of 1974, disclosure of a social security
number or Federal Employer Identification Number
(FEIN) on this form is required under N.D.C.C.
§§ 57‑01-15 and 57-38-32, and will be used for tax
reporting, identification, and administration of North
Dakota tax laws. Disclosure is mandatory. Failure to
provide the social security number or FEIN may delay
or prevent the processing of this form.

This return is incomplete without all required state and federal attachments

Specific line instructions
Line 13

The North Dakota net operating loss deduction
allowed on the Form 40X is the amount of the
accumulated net operating loss less any previously
deducted loss carryback or carryforward. Only
a state net operating loss which occurs when a
corporation does business in North Dakota is
allowed as a state carryback or carryforward.
Additional information is contained in N.D.C.C.
§ 57‑38-01.3(3) and North Dakota Administrative
Code § 81‑03‑05.1‑07.
The state loss is carried back or forward as follows:
For taxable years beginning after December 31,
2002.
•	 Effective for a North Dakota net operating
loss incurred in a taxable year beginning after
December 31, 2002, a corporation may not carry
the loss back to a previous tax year.
For taxable years beginning on or after
January 1, 1993, and before January 1, 2003.
•	 A state net operating loss must be carried back
and carried forward for the same period as a
federal loss. However, a corporation may elect to
forego the carryback period and carryforward the

entire state loss. To elect to forego the carryback
period for a North Dakota loss, a corporation
must make the election on the original return that
was timely filed for the year in which the loss
was incurred. If an election is not made, the loss
must be carried back.
For taxable years beginning before January 1,
1993.
•	 If a corporation incurs a state loss, in the same
year it incurs a federal loss, the loss must be
carried back and carried forward in the same
manner as elected for federal purposes.
	

Consequently, a federal election to forego the
carryback period also applies to the state loss.
•	 If a corporation incurs a state loss, but no federal
net operating loss, the loss may be carried back
and carried forward for the same period as a
federal loss. The corporation may elect to forego
the carryback period and carry forward the entire
state loss. A corporation must make an election
to carryforward the loss with an original return
that is timely filed for the year in which the loss
was incurred. If an election is not made, the loss
must be carried back.

Line 17

Enter on this line the gross proceeds from the sale,
assignment or transfer of unused North Dakota
tax credits from the Credit for Research and
Experimental Expenditures or from the Geothermal,
Solar, Wind or Biomass energy tax credit. Refer
to the corporation income tax booklet for the year
being amended for instructions.

Line 18

If line 17 is zero enter the amount from line 16.
If line 16 is zero or less and line 17 is greater than
zero, enter the amount from line 17.
If line 16 is greater than zero, enter the total of line
16 and line 17.

Line 23

North Dakota law provides for certain tax credits
to a corporation. These credits may have limits and
carryback/carryforward provisions. Refer to the
corporation income tax booklet for the year being
amended for instructions pertaining to these credits.
Attach an explanation for all changes to credits.

Lines 26a and 27a

The current provisions for interest and penalty are
outlined on the back page of this form.

Form

40X

(Revised November 2016)

North Dakota
Amended Corporation Income Tax Return
(Please detach this sheet and keep for future reference)
(See Reverse side for Interest and Penalty Provisions)

The following "Time for Filing" requirements have been summarized from the North Dakota Century Code. We have attempted to discuss
the most common situations where an amended return would be necessary. However, if a situation arises that is not discussed below, refer to
the North Dakota Century Code for the year being amended or contact the Office of State Tax Commissioner at 701.328.1249.

For Taxable Years Beginning After December 31, 1990.
•	 Form 40X must be filed within three years after
the due date of the return or within three years
after the return was filed, whichever period
expires later, if a refund is requested.

	

•	 If North Dakota taxable income or North
Dakota income tax liability changes by an
amount in excess of twenty-five percent, any
refund may be claimed within six years after
the due date of the return, or six years after the
return was filed, whichever period expires last.
(A similar provision related to assessments was
not changed and may be found in N.D.C.C.
§ 57-38-38).
•	 The filing of an amended return before the
expiration of the time limitations provided
for in N.D.C.C. ch. 57-38 allows the tax
commissioner two years after the amended
state income tax return is filed to audit the state
income tax return and assess any additional
state income tax found to be due, even though
other time periods prescribed in N.D.C.C.
ch. 57‑38 for the assessment of tax may have
expired. This time period does not limit or
restrict any other time period prescribed in
N.D.C.C. ch. 57-38 for the assessment of tax
that has not expired at the end of the two-year
period.

	

If the federal change results in additional state
income tax due and:
►	 the change is reported within ninety
(90) days of final determination, the
time period for issuing an assessment
is limited to two (2) years from the date
the change is reported, provided all
other time periods for assessment have
expired.
►	 the change is not reported within ninety
(90) days of final determination, the
time period for issuing an assessment is
unlimited.
If the federal change results in an overpayment
of state income tax and:
►	 the change is reported within ninety
(90) days of final determination, the
overpayment plus interest accrued
through the date of payment will be
refunded.
►	 the change is not reported within ninety
(90) days but is reported within two (2)
years of final determination (or within
any other unexpired time period for
refund), the overpayment plus interest
accrued through ninety (90) days after
final determination will be refunded.

►	 the change is not reported within two
(2) years after final determination,
and provided all other time periods
for refund have expired, the Office of
State Tax Commissioner must deny
any claim for credit or refund.
•	 If all other time periods for assessment or
refund have expired, an assessment or claim for
credit or refund based on a change in federal
taxable income or federal income tax liability
is limited to adjustments directly attributable to
the federal change.
•	 If a taxpayer fails to file a return within three
years after the due date of the return, no credit
or refund of overpaid estimated income tax
may be made.
•	 If a taxpayer consents to an extension of time
for the assessment of North Dakota income tax,
the period of time for filing a claim for refund
is similarly extended.

For Taxable Years Beginning After December 31, 1984 And Before January 1, 1991
•	 Form 40X must be filed within three years after
the due date of the return or within three years
after the return was filed, whichever period
expires later, if a refund is requested.
•	 The time period for assessment of a taxpayer
whose principal place for managing or directing
a business is inside North Dakota is three years
after the due date of the return or three years
after the return was filed, whichever period
expires later.
•	 The time period for assessment of a taxpayer
whose principal place for managing or directing
a business is outside North Dakota is six years
after the due date of the return or six years after
the return was filed, whichever period expires
later.

•	 If there is a change in North Dakota taxable
income or adjusted federal income tax liability
by an amount which is in excess of twenty-five
percent of the amount of taxable income stated in
the return as filed, any additional tax determined
due may be assessed any time within six years
after the due date of the return, or six years after
the return was filed, whichever period expires
later.
•	 The filing of an amended return before the
expiration of the time limitation provided for
in N.D.C.C. ch. 57-38 shall add an additional
time period of two years for assessment of a
deficiency or the issuance of a credit or refund to
the time limitation still remaining as of the date
of filing of the amended return.
•	 Where a loss is being carried back from a
taxable year beginning before January 1, 1987,

Form 40X must be filed within the period
which ends with the fifteenth day of the fortieth
month following the end of the taxable year in
which the net operating loss occurred.
•	 Where a loss is being carried back from a
taxable year beginning after December 31,
1986, Form 40X must be filed within three
years after the original due date for the taxable
year in which the loss occurred, including
extensions.
•	 The time period for reporting a change in
federal taxable income or federal income
tax liability to the Office of State Tax
Commissioner is thirty days after final
determination of any change made by the
Internal Revenue Service. Failure to file within
this time frame will suspend the running of the
statute of limitations for assessment.

North Dakota Amended Corporation Income Tax Return
Calculation of interest and penalty for income tax purposes:
Comparison of rates and calculation methods for pre-'98 years
with those for 1998 and subsequent years

This table shows (in the right hand column) the interest and penalty rates and calculation methods in effect for taxable years beginning after December 31,
1997, as a result of passage of Senate Bill 2102 by the 1999 North Dakota Legislative Assembly. Because the rates and calculation methods in effect for
taxable years begining before January 1, 1998, remain in effect for those taxable years, you'll have to keep track of different rates and calculation methods.
This table will help you do that. Please note that for refunds arising from loss years beginning after December 31, 1997, interest shall start accruing from
the due date of the loss year to the date the refund is issued; however, no interest shall accrue if the refund is issued within forty-five days after the date the
amended return is filed.
•	 SECTION 1 provides an overview of the rates and the general statutory authority
•	 SECTION 2 shows the rates and calculation methods applicable to refunds and the specific statutory authority
•	 SECTION 3 provides an overview of penalty provisions and the general statutory authority

Pre-'98 years

Taxable years beginning before January 1, 1998
SECTION 1: Interest rates at-a-glance
	Refunds
		 [Generally, N.D.C.C. § 57-38-35.2]

1998 and subsequent years

Taxable years beginning after December 31, 1997

10% per annum (.000277/day)

1% per month (or fraction of a month)

1% per month (or fraction of a month)

1% per month (or fraction of a month)

	 Extension of time to file
		 [Generally, N.D.C.C. § 57-38-45(1)]

12% per annum (.000333/day)

12% per annum (.000333/day)

	 Nonpayment, late payment or underpayment
	 of estimated tax
		 [Generally, N.D.C.C. §§ 57-38-45(1) and
		57-38-62(3)]
	SECTION 2: Interest on a refund
	 Description of provision
	 Refund on original return attributable to an
overpayment of withholding or estimated tax
		 [N.D.C.C. § 57-38-35.2(1)(a)]

12% per annum (.000333/day)

12% per annum (.000333/day)

	 Payment of tax after due date, or additional
	 tax due because of audit or other reason
		 [Generally, N.D.C.C. § 57-38-45(1)]

	Rate	
Calculation
10% per annum	 Starts accruing after 60
(.000277/day)	days from the later of (1) the
due date (without extension)
of the original return or (2)
the date the original return is
filed, and stops accruing on
the date the refund is issued.

	Rate	
1% per month or	
fraction of a 	
month	

	

Refund attributable to an amended return filed
for reasons other than a net operating loss
		 [N.D.C.C. § 57-38-35.2(1)(b)]

10% per annum	 Starts accruing after 60
(.000277/day)	days from the later of (1) the
due date (without extension)
of the original return, (2) the
date the original return was
filed, or (3) the date the tax
was fully paid, and stops accruing on the date the refund
is issued.

1% per month or	
fraction of a 	
month	
	
	
	

Accrues from the due date
(without extension) of the
original return to the date the 		
refund is issued, excluding 		
the month in which the due 		
date falls.

	

10% per annum	 Starts accruing after 60
(.000277/day)	days from the date the 		
	
amended return is filed, and
	
stops accruing on the date
	
the refund is issued.

1% per month or	
fraction of a 	
month.	
	

If the refund is issued within
45 days of the date the
amended return is filed, no	 	
interest accrues.

	

If the refund is not issued
within 45 days of the date
the amended return is filed,
interest accrues from the
due date (without extension)
of the original return for the
year in which the loss was
incurred to the date the
refund is issued.

Refund attributable to an amended return filed
for a net operating loss carryback or a capital
loss carryback.
		 [N.D.C.C. § 57-38-35.2(1)(c)]

	SECTION 3: Penalty
	 Description of provision
	

Penalty on late payments of tax due amounts
[N.D.C.C. §§ 57-38-38 and 57-38-45]

Rate	Calculation
5% of the tax or	
$5.00, which-	
ever is greater	
	
	
	

If the federal carryback of a
net operating loss or investment tax credit results in
additional income tax due for
state purposes, the penalty
may be waived.

Calculation
Starts accruing after 45
days from the later of (1)
the due date (without
extension) of the original 	
return or (2) the date the
original return is filed, and
stops accruing on the date
the refund is issued.

Rate	Calculation
5% of the tax or	
$5.00, which-	
ever is greater	
	
	
	

If the federal carryback of a
net operating loss or investment tax credit results in
additional income tax due for
state purposes, the penalty
may be waived.