North Dakota Oil Producers Report And Oil Purchasers Report Instructions Sheet (Page 4 of 23) in pdf

Extension interest that is not paid with the report will be billed by the Commissioner.

PENALTY FOR FAILURE TO FILE A REPORT:

Any person or entity that is responsible for filing a tax or information report is subject to a penalty of twenty-five dollars per day for

each well or unit which is not reported. This penalty is in addition to the 5% penalty imposed on delinquent tax payments.

PENALTY AND INTEREST ON DELINQUENT TAX:

The penalty on delinquent tax is five percent of the tax or five dollars, whichever is greater. This penalty does not apply to delinquent tax

reported on an amended report if both of the following conditions are met:

• Ninety percent of the total combined tax liability, reported on the original report and amended reports, was paid with the taxpayer’s

original report, and

• The amended report is filed and all delinquent tax is paid within sixty days of the due date of the original report.

Interest is imposed on delinquent tax at a rate of one percent per month for each calendar month or any part of a month in which the tax

remains unpaid, except that interest is not imposed in the month the delinquent tax became due.

Penalty and interest due is computed in the following manner:

• Penalty and interest rates are applied to delinquent tax for each production period and for each original or amended report.

• Multiple tax underpayments for different production periods will not be combined to calculate penalty and interest.

• Tax overpayments and tax underpayments for different production periods will not be offset to calculate penalty and interest.

• Tax overpayments and tax underpayments for individual well or unit entries on a single report will be offset and the penalty and

interest computed on the net delinquent tax.

• Tax overpayments and tax underpayments reported on separate reports for the same production period will not be offset.

Penalty and interest that is not paid with the report will be automatically imposed and billed.

A waiver of penalty and interest may be requested either verbally or in writing. The Commissioner may grant a waiver in accordance with

N.D. Admin. Code §§ 81-01.1-01-09 and 81-01.1-01-10.

AMENDED REPORTS:

Pursuant to N.D. Admin. Code § 81-09-02-04, if a taxpayer is required to file an amended report, the amended report is due on the date

set by the Commissioner. The amended report is delinquent if it is postmarked after the due date.

Reversal “credit” entries are required on amended reports. All original entries should be backed out using brackets or minus signs

except for the posted price and average price per barrel, which must be entered as positive “debit” numbers.

• Note: Examples of an original report worksheet and an amended report worksheet to correct the original report can be found

in the Special Instructions section of this booklet.

The correcting entry should be filed using only positive “debit” numbers.

A reversal entry on an amended report should take into account any previously amended reports that may have affected the volumes

and values reported on the original report.

When reporting volume and value for an API or group number not previously reported for a period, you must:

• File the worksheet debit entry under a “current” coversheet

• Not include this worksheet entry with an “amended” coversheet for that period.

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North Dakota Oil Producers Report And Oil Purchasers Report Instructions Sheet Page 4