Form 58 - North Dakota Partnership Income Tax Booklet

Part 5

Preparer authorization check-off

For purposes of calculating the gain or loss for

Nonresident individual

I.R.C. § 179 property dispositions included in

The partnership may authorize the North

box 20 of the Federal Schedule K-1, include

Dakota Ofﬁ ce of State Tax Commissioner

partner only

all of the Section 179 deduction passed

(Tax Department) to discuss matters

Complete Part 5 for a nonresident individual

through to the partner, regardless of whether

pertaining to its 2012 Form 58 with the

partner only.

or not the partner actually deducted all of it.

preparer who signed it. To do so, mark the

circle in the lower right-hand corner of page 1

Line 37

Exception 1: Professional service

ND distributive share of income

of Form 58 next to the signature area. This

partnership. If the partnership is a

(loss)

authorization applies only to the individual

professional service partnership, calculate

Enter the partner’s North Dakota distributive

whose signature and printed name appear in

the amount to enter on line 26 (guaranteed

share of income (loss) from Form 58,

the paid preparer section of the signature area.

payments) by adding the following two

Schedule KP, Column 6.

It does not apply to the ﬁ rm, if any, shown in

amounts:

that section.

Line 38

ND income tax withheld

• Guaranteed payments for services

By marking the circle, the partnership

Enter the amount of North Dakota income

performed within North Dakota by the

authorizes the Tax Department to contact

tax withheld from the partner’s North Dakota

partner; and

the preparer to answer any questions that

distributive share of income from Form 58,

• Guaranteed payments for other than

may arise during the processing of the

Schedule KP, Column 7.

personal services multiplied by the

partnership’s return. It also authorizes

partnership’s apportionment factor from

the preparer to respond to questions and

Line 39

Schedule FACT, line 14.

to provide any information missing from

ND composite income tax

the return, to contact the Tax Department

Enter the amount of North Dakota composite

Exception 2: Allocable (nonbusiness)

to inquire about the status of the return’s

income tax on the partner’s North Dakota

income. If the partnership treated any part

processing and related refund or payment,

distributive share of income from Form 58,

of a distributable item of income from

and to respond to Tax Department notices

Schedule KP, Column 8.

the partner’s Federal Schedule K-1 as

that the partnership shares with the

nonbusiness income subject to allocation,

preparer pertaining to math errors or return

Part 6

calculate the amount to enter on the

preparation. (Tax Department notices will not

Partnership or corporation

corresponding line of this part in the

be sent directly to the preparer.)

following steps:

partner only

This authorization automatically expires on

The apportionment factors are used to

1. Subtract the net nonbusiness income

the due date (excluding extensions) for ﬁ ling

determine North Dakota apportioned income.

(gross amount less related expenses)

the 2013 Form 58.

Complete Part 6 only for a partner that is

from the applicable distributable amount

a partnership, corporation, or other entity

shown on the Federal Schedule K-1.

This authorization does not authorize the

treated like a partnership or corporation.

preparer to receive a refund check, to bind

2. Multiply the remaining distributive

the partnership in any way (including any

Line 40

amount, if any, (from step 1) by the

additional tax liability), or to represent the

North Dakota factors

partnership’s apportionment factor from

partnership before the Tax Department

Enter the partner’s share of the partnership’s

Schedule FACT, line 14.

for any other purpose. To expand the

North Dakota apportionment factor amounts

preparer’s authorization, the partnership must

3. Add the result (from step 2) to the portion,

from Schedule FACT, Column 2, lines 7, 8,

complete and ﬁ le North Dakota Form 500,

if any, of the net nonbusiness income

and 12 in the corresponding column.

Authorization to Disclose Tax Information

allocable to North Dakota, and enter the

and Designation of Representative, with the

result on the corresponding line of Part 4.

Line 41

Total factors

Tax Department.

Note: If any portion of the net nonbusiness

Enter the partner’s share of the partnership’s

income removed from the distributable

Assembling a paper return

total factor amounts from Schedule FACT,

amount (in step 1 above) is allocable outside

Please assemble Form 58 and its required

Column 1, lines 7, 8, and 12 in the

North Dakota, do not enter it anywhere on

attachments in the following order:

corresponding column.

North Dakota Schedule K-1 (Form 58).

1. Form 58.

Before you ﬁ le

Exception 3: Interest from U.S. obligations.

2. Schedule FACT.

Do not include interest from U.S. obligations

3. Schedule K.

Form 58

in determining the amount to enter on Part 4,

4. Schedule KP.

line 27.

5. North Dakota Schedule K-1s.

Signatures

6. Supporting statements required in

If the calculation of any amount on lines 23

The return must be signed and dated

instructions.

through 36 of Part 4 was affected by the

by a general partner, or an authorized

7. Complete copy of Form 1065 (or 1065-B)

removal or inclusion of net nonbusiness

representative of the partnership.

including Federal Schedule K-1s.

income, attach a statement to the partner’s

North Dakota Schedule K-1 (Form 58)

If the partnership pays someone other than

Staple all documents (except check or money

identifying the net nonbusiness income

one of its partners or an employee of the

order) together at the top center of Form 58.

and showing the calculation of the amount

partnership to prepare the return, the paid

Enclose a check or money order made

entered on the applicable line(s) of Part 4.

preparer also must sign and date the return.

payable to: ND State Tax Commissioner. Do

not send cash.

Form 58 - North Dakota Partnership Income Tax Booklet - 2012 Page 13

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