North Dakota Calculation of Interest on Underpayment or Late Payment of Estimated Income Tax for Estates and Trusts

Calculation of Interest on Underpayment or Late Payment of Estimated Income Tax for Estates and Trusts
Schedule 38-UT - Calculation of Interest on Underpayment or Late Payment of Estimated Income Tax for Estates and Trusts -2023
	CALCULATION OF INTEREST ON UNDERPAYMENT

OR LATE PAYMENT OF ESTIMATED INCOME TAX
FOR ESTATES AND TRUSTS

Schedule 38-UT

OFFICE OF STATE TAX COMMISSIONER

2023

SFN 28711 (12-2023)

Attach to Form 38
Name of Estate or Trust Shown on Form 38	

Estate’s or Trust’s FEIN

IMPORTANT:	•	
See instructions before attempting to complete this form.
	•	
Do not complete this form unless the estate or trust was required to pay estimated federal income tax for the
2023 tax year. See “Federal estimated income tax requirement” in General Instructions.

Part 1 - Exceptions to regular computation of underpayment
	

See the instructions for a description of each of the exceptions listed below. If one of them applies, fill in the applicable circle,
complete Parts 2 and 3 as instructed, and attach Schedule 38-UT to Form 38.

	Qualified farmer exception	
B.	  Federal annualized income installment method exception	
A.	

		

	

(Attach copy of 2023 Federal Form 2210)

	
	

 Federal 4th quarter exception
D.	  Partial year exception
C.	

Part 2 - Computation of underpayment
	 1.	 Enter 2023 net tax liability (from 2023 Form 38, page 1, line 4)................................................................	 1	______________
	 2.	 Multiply line 1 by 90% (.90) [or 66 2/3% (.6667) if a qualified farmer].................... 	 2	______________
	 3.	 Enter 2023 withholding (from 2023 Form 38, page 1, line 8).....................................................................	 3	______________
	 4.	 Subtract line 3 from line 1. If less than $1,000, no estimated tax payment was required
	

	 for 2023; do not file this form ..........................................................................................................	 4	______________

	 5.	 Enter 2022 net tax liability (from 2022 Form 38, page 1, line 4). If no return .was required to be filed for
		 2022, enter -0-. If less than $1,000, no estimated tax payment was required .for 2023;
	

	 do not file this form..........................................................................................................................	 5	______________

	 6.	 Required payment. Enter smaller of line 2 or line 5. However, if the estate or trust was not in existence
		 for the entire 2022 tax year, enter the amount from line 2 and fill in this circle	
If one of the exceptions in Part 1 applies, see the	
instructions to line 7 before completing the rest of this form.	
	

 ........ 	 6	______________
Payment due date

1st Quarter	 2nd Quarter	 3rd Quarter	 4th Quarter

April 15, 2023	

June 15, 2023	 Sept. 15, 2023	 Jan. 15, 2024

	 7.	 Enter 25% of line 6 in each column (or, if an exception
		 in Part 1 applies, enter the amount per instructions to line 7).......... 	

7	 __________	__________	__________	 __________

	 8.	 Enter estimated tax paid and tax withheld (See instructions).......... 	

8	 __________	__________	__________	 __________

		
Complete lines 9 through 15 of one column before

		 going to next column. Lines marked “NA” do not apply.

	 9.	 Enter amount, if any, from line 13 of previous column.................... 	

NA
9	 __________	__________	__________	
__________

	 10.	 Total paid. Add lines 8 and 9....................................................... 	

10	 __________	__________	__________	 __________

	 11.	 Add lines 14 and 15 of previous column....................................... 	

NA
NA
11	 __________	__________	__________	
__________

	 12.	 Overpayment. If line 10 is greater than line 7, subtract line 7

NA
		 from line 10. Otherwise, enter -0-............................................... 	 12	 __________	__________	__________	 __________
	 13.	 Overpayment carryover. If line 12 is greater than line 11,

		 subtract line 11 from line 12. Otherwise, enter -0- .......................	

	 14.	 Underpayment carryover. If line 11 is greater than line 12,

		 subtract line 12 from line 11. Otherwise, enter -0- .......................	

13	 __________	__________	__________	 __________
NA

NA
NA
14	 __________	__________	__________	
__________

	 15.	 Underpayment. If line 7 is greater than line 10, subtract

		 line 10 from line 7. Otherwise, enter -0-....................................... 	 15	 __________	__________	__________	 __________

Part 3 - Computation of interest (See instructions)
	 16.	 a.	 Date of payment (See instructions)....................................... 	 16a	 __________	__________	__________	 __________
b.	 Number of days from the payment due date to the
	

date on line 16a.................................................................. 	 16b	 __________	__________	__________	 __________

c.	

Divide line 16b by 365 and round to three decimal places......... 	 16c	 __________	__________	__________	 __________

d.	 Multiply line 16c by 12% (.12) and round to three
	
decimal places.................................................................... 	 16d	 __________	__________	__________	 __________
e.	 Multiply line 15 by line 16d................................................... 	 16e	 __________	__________	__________	 __________

	 17.	 Total interest. Add the amounts in all four columns on line 16e. Enter this amount

		 on Form 38, line 17. (See instructions)................................................................................................ 	 17	______________

	 023 Schedule 38-UT
2
SFN 28711 (12-2023), Page 2

General instructions

A fiduciary for an estate or trust may
use Schedule 38-UT to determine if
enough estimated North Dakota income
tax was paid by the payment due dates
and, if not, to calculate the amount of
interest to pay on the underpayment
or late payment. The dates used on
Schedule 38‑UT and in these instructions
are for calendar year filers. Fiscal year
filers should substitute corresponding
dates.
Federal estimated income tax
requirement. Do not complete
Schedule 38‑UT unless the estate or trust
was required to pay estimated federal
income tax for the tax year. To determine
this, see the 2023 Federal Form 2210.

Instructions for Part 1

Following are descriptions of the
exceptions to the regular computation of
underpayment listed in Part 1. If one of
them applies, fill in the applicable circle.
Item A: Qualified farmer exception
This exception applies if the fiduciary
qualified as a farmer for federal
estimated income tax purposes in 2023
and was required to pay estimated
federal income tax for the 4th quarter
due on January 15, 2024.
Item B: Federal annualized income
installment method exception
This exception applies only if the
fiduciary used the annualized income
installment method to calculate the
amount of the underpayment and
penalty for federal estimated income
tax purposes for 2023. Attach a copy
of the federal annualized income
installment method worksheet (from
2023 Federal Form 2210) showing
the amounts computed for federal
purposes.
Item C: Federal 4th quarter
exception
This exception applies if the fiduciary
did not have to make the 4th quarter
estimated federal income tax payment
due on January 15, 2024, because the
2023 federal income tax return was filed
and the remaining federal income tax due
was paid by February 1, 2024.
Item D: Partial year exception
This exception applies if the estate or
trust was not in existence for the entire
2023 tax year and did not receive
income subject to North Dakota income
tax until after April 15, 2023. Attach a
statement describing the situation.

Instructions for Part 2
Line 7

If one of the exceptions in Part 1 applies,
enter on this line the appropriate
amount(s) as follows:
	 •	If Item A applies, enter the amount
from line 6 in the 4th quarter
column. Enter zero in the first three
columns.
	 •	If Item B applies, use the
annualized federal taxable
income determined on the 2023
Federal Form 2210 to calculate an
annualized North Dakota taxable
income. Include any adjustments
required or allowed under North
Dakota tax law in the calculation.
Enter the amount of estimated
North Dakota income tax due by
each payment due date calculated
in the same manner as under
the federal annualized income
installment method on Form 2210.
Attach a worksheet showing the
North Dakota calculations.
	

•	 If Item C applies, enter 25% of the
amount on line 6 in the 1st, 2nd
and 3rd columns. Enter zero in the
4th quarter column.

	 •	If Item D applies, the amount
to enter in each column depends
on when the estate or trust first
received income from North Dakota
sources in 2023. If received after
March 31 and before June 1, 2023,
enter one-third of the amount on
line 6 in the 2nd, 3rd, and 4th
quarter columns. If received after
May 31 and before September 1,
2023, enter one-half of the
amount on line 6 in the 3rd and
4th quarter columns. If received
after August 31, 2023, and before
January 1, 2024, enter the amount
from line 6 in the 4th quarter
column.

Line 8

Enter the amount of estimated tax paid
and income tax withheld for each quarter.
(Note: Do not include the income tax
withheld from nonresident beneficiaries
from Form 38, page 1, line 5.) Unless it
can be shown otherwise, one-fourth of
the total amount withheld is deemed to
have been withheld by each payment
due date. If the fiduciary elected to apply
an overpayment from the 2022 North
Dakota Form 38 to the 2023 estimated
tax, enter the overpayment in the 1st
quarter column; however, if the fiduciary
attached a statement to the 2022
return requesting the overpayment to
be applied to another quarter, enter the
overpayment in the appropriate column.

Instructions for Part 3

Interest of 12% per year is charged on
an underpayment or late payment of
estimated tax. Interest accrues from the
due date of the payment to the earlier of
April 15, 2024, or the date the estimated
tax due is paid in full. In the case where
an overpayment is applied to offset
an underpayment, the overpayment is
considered to have been applied as of
the payment due date for the quarter in
which the overpayment occurred.
In some cases, it may be necessary
to compute the interest on a separate
worksheet, in which case skip lines 16a
through 16d and enter the separately
computed interest on line 16e in
the appropriate column. Attach a
worksheet showing the calculation.
For purposes of computing interest,
the amount paid for a quarter must
be applied first to the amount due for
that quarter. If the total amount paid
exceeds the amount due, the excess
must be applied to offset an outstanding
underpayment, if any, from a previous
quarter, starting with the earliest
underpayment. In addition, in the case of
a late payment, the interest on line 16e
must be computed on the amount due on
line 7 less any tax withheld included on
line 8.

Line 16a

Except for a late payment or where an
underpayment is offset by a subsequent
quarter’s overpayment, enter April 15,
2024. If there is a late payment and
the amount of the payment equals
or exceeds the amount of estimated
tax due, enter the date of payment.
If an underpayment is fully offset by
a subsequent quarter’s overpayment,
enter the payment due date for the
quarter in which the overpayment
occurred. In other cases, more than
one date may apply and it may be
necessary to compute the interest on a
separate worksheet, in which case skip
lines 16a through 16d and enter the
separately computed interest on line 16e
in the appropriate column. Attach a
worksheet showing the calculation.

Line 17

If there is an overpayment on Form 38,
page 1, line 11, any interest due on
Schedule 38-UT will reduce the amount
to be refunded. If there is a tax due on
Form 38, page 1, line 14, any interest
due on Schedule 38-UT must be included
in the balance due to be paid with the
return. If there is no overpayment or tax
due on Form 38, and if the interest due
on Schedule 38‑UT is $5.00 or more, the
interest due on Schedule 38-UT must be
included in the balance due, and a check
or money order for this amount must be
submitted with the return.