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               North Dakota Office of State Tax Commissioner

               GuGuidelineGuideline -- IncomeIncome TaxTax WithholdingWithholding &ideline&                                                                            - Income Tax Withholding &
                                      I                                              IInformation Returnsnformation Returnsnformation Returns

Table of Contents
Section 1 - Income Tax Withholding From Wages
  Withholding Requirement .........................................................................................................................2
  Wages Subject To Withholding .................................................................................................................3  
  Employer Registration ..............................................................................................................................4
  Amount To Withhold ..................................................................................................................................5
  Reporting And Payment Of Tax Withheld .................................................................................................6
    ○  Form 306 - Income Tax Withholding Return .......................................................................................6
    ○  Filing And Payment Methods For Form 306 .......................................................................................6
Section 2 - Non-Wage Payments With Voluntary Withholding .............................................................................9
  General Rule For Non-Wage Payments ...................................................................................................9
  Voluntary Withholding ...............................................................................................................................9
Section 3 - Information Returns For Wages And Non-Wage Payments With Voluntary Withholding ................. 11
  Who Must File ......................................................................................................................................... 11  
  How And When To File ...........................................................................................................................12
Section 4 - Information Returns For Non-Wage Payments With No Withholding ...............................................15  
  Who Must File .........................................................................................................................................15
  How And When To File ...........................................................................................................................17
Section 5 - Income Tax Withholding From Oil and Gas Royalty Payments ........................................................ 20
  Part 1 - Withholding Requirement ...........................................................................................................            20 
    ○  Definitions .........................................................................................................................................20
    ○  Who Must Withhold ...........................................................................................................................21
    ○  Exemptions From Withholding Requirement ....................................................................................22
    ○  Amount To Withhold ..........................................................................................................................23
    ○  Remitter Registration ........................................................................................................................24
  Part 2 - Reporting And Payment Of Tax Withheld ...................................................................................25
    ○  Form RWT-941 - Royalty Withholding Return...................................................................................25
    ○  Filing And Payment Methods For Form RWT-941 ............................................................................25
  Part 3 - Information Returns For Oil And Gas Royalty Payments ...........................................................27
    ○  How And When To File Forms 1099-MISC And 1042-S ...................................................................28
    ○  Form RWT-1096 - Royalty Withholding Annual Return And Transmittal ........................................... 30
    ○  Reporting By A Publicly Traded Partnership .....................................................................................                     30
Assistance ..........................................................................................................................................................31
    ○  Registration Assistance ....................................................................................................................31
    ○  Technical Assistance .........................................................................................................................31

For Frequently Asked Questions, go to www.nd.gov/tax/faqs.

28221 (12/2021)

                                                                                      www.nd.gov/tax | individualtax@nd.gov 
                                      600 E. Boulevard Ave., Dept 127 | Bismarck, ND 58505-0599 
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Income Tax Withholding & 
Information Returns Guideline

Section 1 - Income Tax Withholding From Wages

         This section explains the requirements for withholding North Dakota income tax from 
        wages paid by employers to employees.
         See Section 3 for year-end information return filing requirements.

       CHANGE FOR 2022 AND AFTER—For calendar years 2022 and after, Form 306, Income 
       Tax Withholding Return, and the tax due on it must be submitted electronically if the amount of 
       North Dakota income tax withheld during the previous calendar year was $1,000 or more. See 
       “Filing And Payment Methods For Form 306” later in this section.

Withholding Requirement
An employer is subject to North Dakota’s income tax withholding requirement and must register for a 
withholding account if both of the following apply:
   The employer pays wages to (a) an employee for services performed in North Dakota or (b) a North 
       Dakota resident for services performed outside North Dakota (including outside the United States).
       Exception for North Dakota resident working outside North Dakota. A North Dakota-based 
       employer does not have to withhold North Dakota income tax from wages paid to a North Dakota 
       resident who works outside North Dakota if the employer is required to withhold another state’s income 
       tax from the wages.
      The wages are subject to federal income tax withholding.
Unless otherwise stated, the terms used in Section 1 of this guideline have the same meaning as defined in 
the Internal Revenue Code of 1986, as amended, for purposes of federal income tax withholding from wages. 
An “employer” includes the State of North Dakota and any of its political subdivisions. North Dakota Century 
Code (N.D.C.C.) §§ 57-38-01(10) and 57-38-59(1)(2)

Nonresident alien of United States working in North Dakota
Wages paid to a nonresident alien of the United States for services performed within North Dakota are subject 
to North Dakota income tax withholding if they are subject to federal income tax withholding. Even if wages 
paid to a nonresident alien are exempt from federal income tax withholding because of an income tax treaty 
between the United States and a foreign country, they are subject to North Dakota income tax withholding. 
Unless an income tax treaty between the United States and a foreign country specifically exempts wages from 
taxation by a U.S. state, the treaty exemption is not recognized for North Dakota income tax purposes.
To determine the amount of North Dakota income tax to withhold from the wages paid to a nonresident alien 
for services performed in North Dakota, do the following: 
     Complete a separate Federal Form W-4 for North Dakota withholding purposes. Write “North Dakota 
       only— nonresident alien” at the top of the form.
     Fill in the name and address of the nonresident alien. For the address, provide the permanent address 
       in the home country of the nonresident alien. If there is no permanent address in the home country, 
       provide the address used in the United States.

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     Fill in the social security number if one is available. If the nonresident alien does not have to obtain a 
       social security number for any federal purpose, one does not have to be obtained just for North Dakota 
       withholding purposes, in which case write “Not required” in the space for the social security number. 
     Check the “Single” box.
     Calculate the North Dakota income tax withholding based on the Federal Form W-4 as filled out above.
       (Note: The “Exempt” status may not be claimed.)

Wages Subject To Withholding
Except as provided under “Exceptions” below, “wages” means any remuneration includable in wages as 
defined under I.R.C. § 3401 for purposes of federal income tax withholding from wages. Any payment excluded 
from wages under I.R.C. § 3401, such as compensation paid for domestic service in a private home, is not 
subject to the North Dakota withholding requirement, even if an employer and employee voluntarily agree to 
withhold federal income tax from the compensation. N.D.C.C. § 57-38-01(10)
Exceptions. The following wage payments are exempt from North Dakota income tax withholding:
     Wages paid to a nonresident of North Dakota for performing regularly assigned duties in more than 
       one state for an interstate motor, rail, air, or water carrier company, to the extent the wages are exempt 
       from state income tax or state income tax withholding under federal interstate commerce law. See 
       U.S. Code, title 49, sections 11502 (rail carrier), 40116(f)(2) (air carrier), 14503(a) (motor carrier), and 
       14503(b)(2) (water carrier).
     Wages paid to a Minnesota or Montana resident that are exempt from North Dakota income tax under 
       reciprocity, provided the employee completes and gives a Form NDW-R, Reciprocity Exemption 
       From Withholding For Qualifying Minnesota and Montana Residents Working in North Dakota, to the 
       employer. (Note: Under the agreement with Minnesota, the employee must return to his or her home 
       in Minnesota at least once every month to qualify for the exemption.) The employee must renew the 
       exemption from withholding at the beginning of each year by completing and giving a new
       Form NDW-R to the employer on or before February 28. The employer is responsible for making
       Form NDW-R available to employees. N.D.C.C. § 57-38-59.1
     Wages paid to a Native American Indian who (1) is an enrolled member of a federally recognized Indian 
       tribe, (2) lives on an Indian reservation, and (3) performs the services for which the wages are paid on 
       an Indian reservation.
     Wages paid by a farmer or rancher to an employee solely for agricultural labor.
       N.D.C.C. § 57-38-60(10)
     Wages paid to an eligible civilian spouse of a U.S. armed forces service member for services performed 
       in North Dakota if (1) both the civilian spouse and service member are nonresidents of the state,
       (2) the service member’s permanent duty station is in the state, and (3) the civilian spouse is residing 
       and working in the state only because the civilian spouse wants to be with the service member. If 
       a civilian spouse working in North Dakota meets these conditions, the civilian spouse may claim 
       exemption from North Dakota income tax withholding on the North Dakota wages by completing 
       and filing Form NDW-M with the civilian spouse’s employer. This exemption must be renewed each 
       year by completing and filing a new Form NDW-M with the employer by January 31 of the new year. 
       Servicemembers Civil Relief Act, 50 U.S.C. 4001.

                                   www.nd.gov/tax | individualtax@nd.gov 
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     Wages paid to a nonresident of North Dakota under North Dakota’s nonresident mobile workforce 
       exclusion. Subject to exception for certain employees, the exclusion applies if (1) the nonresident 
       has no other income from sources in North Dakota for the tax year; (2) the nonresident is present in 
       North Dakota to perform employment duties for not more than twenty days during the tax year; and 
       (3) the nonresident’s state of residence provides a substantially similar exclusion or does not impose 
       an individual income tax, or the nonresident’s income is exempt from state taxation under the United 
       States Constitution or federal statute. N.D.C.C. § 57-38-59.3

Severance pay
Severance pay granted to an employee upon termination that is based on past services is included in wages. 
Severance pay to a former employee who is a North Dakota resident at the time of payment are taxable and 
subject to North Dakota income tax withholding whether the employer is based inside or outside North Dakota. 
Severance pay to a former employee who is a nonresident of North Dakota at the time of payment are taxable 
and subject to North Dakota income tax withholding to the extent the payment is based on past services in 
North Dakota. For example, if a former employee is an Arizona resident at the time of payment, and if the 
employee had worked in North Dakota for nine years and one year in Arizona, 90% of the payment is taxable 
and subject to withholding in North Dakota. N.D.C.C. §§ 57-38-03 and 57-38-04(1)

Voluntary withholding
In certain cases where wages are not subject to North Dakota income tax withholding, an employee may 
request the employer to voluntarily withhold North Dakota income tax from the wages. If an employer agrees to 
voluntarily withhold North Dakota income tax for an employee’s convenience, the employer must register for a 
North Dakota withholding account and comply with the reporting and payment requirements.
N.D.C.C. § 57-38-61

Employer Registration
Every employer subject to the requirement to withhold North Dakota income tax from wages paid to employees 
must register with the Office of State Tax Commissioner by applying for an income tax withholding account. 
Application is made through Taxpayer Access Point (TAP), the online tax filing and account access application 
on the Office of State Tax Commissioner’s website. To set up a TAP account, go to www.nd.gov/tax/tap and 
click on “Sign Up For Access.” North Dakota Administrative Code (N.D. Admin.Code) § 81-03-03.1-02

Cash deposit or bond 
If required by the Office of State Tax Commissioner, an employer must make a cash deposit or post a bond or 
undertaking executed by a surety company authorized to do business in North Dakota. The amount of the cash 
deposit, bond, or undertaking must be reasonably calculated to ensure the payment of North Dakota income 
tax withheld from wages by the employer. N.D.C.C. § 57-38-60(9)

Funds held in trust
North Dakota income tax withheld from employees’ wages are held by the employer in trust for the State of 
North Dakota for payment to the Office of State Tax Commissioner in the manner and at the time prescribed by 
law, subject to the lien provided by law. N.D.C.C. § 57-38-60(8)

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Personal liability 
The president, vice president, secretary, or treasurer of a corporation; or the governors, managers, or 
members of a limited liability company (LLC); or the general partners of a partnership who, jointly or severally, 
are charged with the responsibility for the filing of the withholding returns and payment of the tax due are 
personally liable for the failure of the business to file any return or pay any tax due. Dissolution of the business 
does not discharge this personal liability. N.D.C.C. §§ 57-38-60.1(1), 57-38-60.2(1), and 57-38-60.3(1)

Election to make cash deposit or bond or undertaking in lieu of personal liability. The persons personally 
liable for the failure to file or pay may elect to not be personally liable, provided the corporation, LLC, or 
partnership makes a cash deposit or posts a bond or undertaking executed by a surety company authorized 
to do business in North Dakota. The amount of the cash deposit, bond or undertaking must be equal to the 
estimated annual income tax withholding liability of the corporation, LLC, or partnership. The business must 
contact the Office of State Tax Commissioner to make this election. N.D.C.C. §§ 57-38-60.1(2), 57-38-60.2(2), 
and 57-38-60.3(2)

Change in federal employer identification number (FEIN)
If an employer’s FEIN is changed for any reason, the employer must register the change by completing a new 
application for an income tax withholding account.

Payroll service provider
If an employer contracts with a payroll service provider to handle the employer’s wage withholding, filing, and 
payment duties, the employer must complete the appropriate part of the registration form to designate and 
identify the provider. The designation of the provider on the registration form will constitute the employer’s 
consent for the Office of State Tax Commissioner to communicate directly with the provider about the 
employer’s wage withholding returns and payments. An employer may revoke the provider designation and 
consent by completing and filing a new registration application on which the employer requests the revocation.

Closing an account
If an employer ceases to conduct business in North Dakota or permanently ceases to pay wages subject 
to North Dakota withholding, the employer must notify the Office of State Tax Commissioner to close 
the withholding account. This can be done on the final Form 306 or final Form 307 filed for the closing 
year, or through Taxpayer Access Point (TAP) at www.nd.gov/tax/tap, by letter, or sending an email to 
taxregistration@nd.gov. Note: Form 307 (if required), Form W-2, and any Form 1099 and 1042-S reporting 
non-wage payments (other than oil and gas royalties) must be filed for the year the account is closed.
N.D.C.C. § 57-38-61

Amount To Withhold
The amount of North Dakota income tax to withhold is based on the employee’s federal Form W-4 on file 
with the employer. There are two methods available to employers for calculating the amount to withhold—the 
Percentage Method and the Wage Bracket Method—which are similar to the federal income tax withholding 
methods. For complete details, see the separate document Income Tax Withholding Rates & Instructions at
www.nd.gov/tax/withholding. N.D.C.C. § 57-38-59

                                                  www.nd.gov/tax | individualtax@nd.gov 
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Reporting And Payment Of Tax Withheld

Form 306 - Income Tax Withholding Return
Form 306, North Dakota Income Tax Withholding Return, must be filed to report and remit the amount of North 
Dakota income tax withheld during the period for which it is filed. Form 306 must be filed on a calendar quarter 
basis, or if eligible, on an annual basis—see “When to file Form 306” later in this section. Form 306 must be 
filed even if no wages were paid during the period covered by the return.
Form 306 can be obtained on the Office of State Tax Commissioner’s website at www.nd.gov/tax. If an 
employer is required to electronically file Form 306, or an employer chooses to file Form 306 electronically, the 
paper Form 306 will no longer be mailed to the employer—see “Filing and Payment Methods For Form 306” 
below. N.D.C.C. § 57-38-60(1)(2)

Filing And Payment Methods For Form 306

2021 calendar year. For the 2021 calendar year, Form 306 may be filed electronically or on paper.
Calendar years 2022 and after. For calendar years 2022 and after, Form 306 and the tax due on it must be 
submitted electronically if either of the following apply:
   The amount required to be withheld from wages paid during the previous calendar year is $1,000 or 
       more.
   The employer contracts with a third-party payroll service provider to file and remit North Dakota income 
       tax withheld on the employer’s behalf, and the third-party payroll service provider electronically files and 
       remits the employer’s withholding taxes for federal tax purposes.
If an employer can show good cause, the employer may request a waiver of the electronic filing requirement. 
N.D.C.C. § 57-38-60(2)

Electronic filing and payment options
Form 306 and the tax due on it can be submitted electronically in the same transaction using either of the 
following two methods:
      Taxpayer Access Point (TAP) - If an employer has a TAP account with the Office of State Tax 
       Commissioner, Form 306 and any tax due on it can be electronically submitted through the account. If 
       there is a tax due, it can be paid through an ACH Debit transaction, which authorizes the Office of State 
       Tax Commissioner to withdraw the funds from the employer’s checking or savings account.
       Don’t have a TAP account? To set up a TAP account, go to www.nd.gov/tax/tap and click on “Sign 
       Up For Access.”
       ACH Debit block: If an employer has placed an ACH Debit block on the employer’s bank account, 
       the employer must contact the financial institution to authorize an ACH Debit payment prior to the 
       transaction to prevent rejection of the payment. The financial institution will need the Office of State Tax 
       Commissioner’s Originator ID number for this purpose. Use the applicable Originator ID below:
       To authorize the Office of State Tax Commissioner to debit a savings or checking account, use 
         Originator ID number 1450309764.
       To pay with a debit card, use Originator ID number 1621868563.

                                                          www.nd.gov/tax | individualtax@nd.gov 
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      ACH Credit – If  there is a tax due on Form 306, both the return and the tax due can be electronically 
       submitted through an ACH credit transaction, which is an electronic transfer of funds from the 
       employer’s bank to the Bank of North Dakota. The employer initiates this through its own bank and is 
       responsible for any fees to make the transfer. The ACH Credit transaction satisfies the Form 306 filing 
       requirement.
       To use this method, complete and submit Form 301-EF, ACH Credit Authorization, to the Office of State 
       Tax Commissioner. For more information, go to www.nd.gov/tax and click on “Make A Payment,” 
       then select “ACH Credit Information.” Note: The addenda record layout specified for “Income Tax 
       Withholding” must be used.

Paper filing and payment options
Form 306 may be filed on paper only if an employer is not required to file it electronically or has obtained a 
waiver of the electronic filing requirement. N.D.C.C. § 57-38-60(2)
Payment options. If filing a paper Form 306, payment of the tax due on the form can be electronically 
submitted through the employer’s TAP account or through the Make A Payment feature on the Office of State 
Tax Commissioner’s website at www.nd.gov/tax. If paying with a paper check, complete Part III of Form 306 
and submit the check with Form 306.
When to file Form 306
Except as provided under “Annual filing” below, Form 306 must be filed for each calendar quarter on or before 
the following due dates:
       Calendar Quarter                            Due Date 
       January, February and March                 April 30 
       April, May and June                         July 31 
       July, August and September                  October 31 
       October, November and December              January 31   N.D.C.C. § 57-38-60(1)

Annual filing. In lieu of filing and paying on a quarterly basis, an annual filing and payment option is available 
to eligible employers under which one Form 306 is filed for the entire calendar year on or before January 31 
following the end of the calendar year. An employer is eligible to file an annual Form 306 for a calendar year if 
all the following apply:
     The employer filed Form 306 for all four quarters of the preceding calendar year.
     The employer filed and paid the full amount of North Dakota income tax due on Form 306 on or before 
       the due date for all four quarters of the preceding calendar year. 
     The total North Dakota income tax withheld by the employer during the preceding calendar year was 
       less than $1,000.
For eligible employers who wish to file Form 306 on an annual basis, contact the Office of State Tax 
Commissioner at withhold@nd.gov prior to filing the first quarter’s withholding income tax return.
N.D.C.C. § 57-38-60(1)

                                                   www.nd.gov/tax | individualtax@nd.gov 
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Failure To Timely File Or Pay
If Form 306 is not filed, or if full payment is not remitted, on or before the due date, penalty and interest applies 
as follows:
     Penalty
         Late filed return—If an original return is not filed by the due date, the penalty is 5% of the tax due or 
           $5.00, whichever is greater, for the month in which the return is due, plus an additional 5% for each 
           additional month (or fraction of a month) during which the tax remains unpaid, not to exceed 25% of 
           the tax due.
         Late payment—If an original return is filed on or before the due date, but the full amount of tax due 
           on it is not paid by the due date, the penalty is 5% of the tax due or $5.00, whichever is greater.
         Amended return—If an amended return is filed after the due date of the original return, and there is 
           a tax due on the amended return, a penalty of 5% of the tax due on the amended return or $5.00, 
           whichever is greater, applies.
       N.D.C.C. §§ 57-38-45(2) and 57-38-61
     Interest. Interest accrues at the rate of 1% of the tax due for each month (or fraction of a month) the tax 
       remains unpaid, starting with the month following the month in which the original return was due. This 
       also applies to tax due on an amended return filed after the due date of the original return. N.D.C.C.
       §§ 57-38-45(1) and 57-38-61

Amended return
An amended Form 306 can be filed electronically in TAP, or on paper if the employer is not required to file it 
electronically.

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Section 2 - Voluntary Income Tax Withholding From
Non-Wage Payments

         This section explains the requirements and procedures that apply if North Dakota income 
        tax is voluntarily withheld from non-wage payments reportable on Forms 1099, 1042-S, and 
        W-2G.
         See Section 3 of this guideline for the requirements and procedures for filing Forms 1099, 
        1042-S, and W-2G reporting non-wage payments from which North Dakota income tax is 
        withheld.

General Rule For Non-Wage Payments
Non-wage payments are not subject to North Dakota income tax withholding, except for the three types listed 
below. North Dakota income tax may be voluntarily withheld from non-wage payments otherwise exempt from 
withholding—see “Voluntary Withholding” below.
      North Dakota oil and gas royalty payments—Certain oil and gas royalty payments reportable on 
       Forms 1099-MISC and 1042-S are subject to North Dakota income tax withholding. See Section 5 of 
       this guideline for the requirements and procedures. N.D.C.C. § 57-38-59.4
      North Dakota lottery prize payments—A North Dakota lottery prize payment reportable on Form 
       W-2G is subject to North Dakota income tax withholding at the highest marginal rate for individuals if 
       the prize is over $5,000. Currently, the withholding rate is 2.90%. North Dakota lottery prize payments 
       and the withholding of income taxes from them are administered by the North Dakota Lottery, a division 
       of the Office of Attorney General. N.D.C.C. § 57-38-59.2
      North Dakota unemployment benefit payments—North Dakota unemployment compensation 
       payments reportable on Form 1099-G are subject to North Dakota income tax withholding, but only if 
       the benefit recipient elects have both federal income tax and North Dakota income tax withheld. North 
       Dakota unemployment payments and the withholding of income taxes from them are administered by 
       Job Service North Dakota. N.D.C.C. § 52-06-30(2)

Voluntary Withholding
For non-wage payments other than the three identified above, North Dakota income tax may be voluntarily 
withheld if the payment recipient requests it and the payor agrees to do so. If a payor agrees to voluntarily 
withhold North Dakota income tax, the following procedures apply:
  1.  Register for a withholding account with the Office of State Tax Commissioner. Application is made through 
   Taxpayer Access Point (TAP), an online tax filing and account access application on the Office of State 
   Tax Commissioner’s website at www.nd.gov/tax/tap.
  2.  Calculate the amount to withhold as explained under “Amount to withhold” below.
  3.  Report and pay the North Dakota income tax withheld in the same manner as wage payments, as 
   provided under “Filing And Payment Methods For Form 306” in Section 1 of this guideline.

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  4.  File the information returns—Forms 1099, 1042-S, or W-2G—in the same manner as wage payments, as 
 provided in Section 3 of this guideline.
   Complete the state information boxes on the Form 1099, 1042-S, or W-2G to identify the state, 
        provide the payor’s state identification number, and show the state income tax withheld. Note: The 
        state identification number for North Dakota purposes consists of the payor’s federal employer 
        identification number (FEIN) with the suffix “01” at the end.
   The Combined Federal/State Program may not be used to satisfy the requirement to file a 
        Form 1099 information return with North Dakota if North Dakota income tax is withheld from the 
        payment.

Amount to withhold
Because the withholding is voluntary, the payment recipient may choose the amount to withhold. This may be a 
percentage of the payment or a specific dollar amount. If the recipient does not specify a percentage or amount 
to withhold, or is uncertain about the amount to withhold, multiply the payment by 2.90%.

                                         www.nd.gov/tax | individualtax@nd.gov 
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Section 3 - Information Returns For Wages And
Non-Wage Payments With Voluntary Withholding

    This section explains the year-end filing requirements for the following information returns:
        o  Form W-2.
        o  Forms 1099, 1042-S, and W-2G reporting non-wage payments (other than oil and gas 
            royalty payments) from which North Dakota income tax was withheld.
       IMPORTANT—The procedures in this section do not apply to the following information 
        returns:
        o  Forms 1099 and 1042-S reporting oil and gas royalty payments from which North 
            Dakota income tax is required to be withheld under North Dakota Century Code
            § 57-38-59.4. Instead, see Section 5.
        o  Forms 1099, 1042-S, and W-2G reporting non-wage payments (other than oil and gas 
            royalty payments) without North Dakota income tax withholding. Instead, see Section 4.

  CHANGE FOR 2022 AND AFTER - For calendar years 2022 and after, all Forms W-2, and any  
  Forms 1099, 1042-S, and W-2G showing North Dakota income tax withholding, must be filed  
  electronically. See “How And When To File” later in this section.

Who Must File

Information return for wages (Form W-2)
Every employer who pays wages must file an information return to report the wages and any North Dakota 
income tax withheld if all the following apply:
   The employer is located, or carries on a trade or business, in North Dakota. “Employer” includes the 
  state of North Dakota and its political subdivisions.
   The employer pays wages to (a) an employee for services performed in North Dakota or (b) a North 
  Dakota resident for services performed outside North Dakota (including outside the United States).
   The employer is required to file a Form W-2 for federal purposes to report the wages.
This filing requirement applies even if the employer is not required to register for a withholding account or no 
North Dakota income tax was withheld during the calendar year. N.D.C.C. § 57-38-60(3)(4)
Third-party sick payReconciliation statement.  If a third-party payer of sick pay withholds and remits North 
Dakota income tax using the third-party payer’s name and federal employer identification number (FEIN), but 
the withheld taxes are reported on the Forms W-2 filed by the employer, the employer must provide a written 
statement with the Forms W-2 when filed to reconcile the amounts paid with Form 306 and the amounts 
reported on Form W-2. If the employer electronically files the Forms W-2, the statement may be submitted 
through the employer’s TAP account, by letter, or as an email attachment to withhold@nd.gov. The statement 
must contain the following:

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   The heading: Third-Party Sick Pay Reconciliation Statement For Withholding Purposes.
   Calendar year in which the sick pay payments from which North Dakota income tax was withheld were 
    made to the employees.
   Employer’s name, FEIN, and North Dakota withholding account number.
   For each employee who received sick pay from which North Dakota income tax was withheld:
      Name
      Social security number
      Amount of sick pay
      Amount of North Dakota income tax withheld
 N.D.C.C. §§ 57-38-56, 57-38-60, and 57-38-61

Information return for non-wage payments with voluntary withholding (Forms 1099, 1042-S, and W-2G)
If an employer or other person voluntarily withholds North Dakota income tax from non-wage payments 
reportable to North Dakota on Forms 1099, 1042-S, and W-2G, the information returns must be filed with North 
Dakota using the procedures explained in this Section 3 of the guideline. N.D.C.C. § 57-38-42(1)

How And When To File
For North Dakota purposes, the requirement to file information returns is satisfied by filing with North Dakota a 
copy of the Form W-2, 1099, 1042-S, or W-2G filed with the Social Security Administration or Internal Revenue 
Service. The state information section on the information return must be completed for North Dakota purposes 
to show the North Dakota wages or income paid and North Dakota income tax withheld for the calendar year.
N.D.C.C. §§ 57-38-42(1) and 57-38-60(3)(4)

How to file
2021 calendar year. For calendar year 2021, all Forms W-2, and any Forms 1099, 1042-S, and W-2G 
showing North Dakota income tax withholding, must be electronically filed if there is a requirement to file them 
electronically for federal purposes and the number of forms required to be filed with North Dakota is 10 or 
more. A payroll service provider must file the forms electronically, regardless of the number of forms. N.D.C.C. 
§ 57-38-60(11)(12), effective for calendar years before 2022.
Calendar years 2022 and after. For calendar years 2022 and after, all Forms W-2, and any Forms 1099, 
1042-S, and W-2G showing North Dakota income tax withholding, must be filed electronically. If an employer 
or payor can show good cause, a request for a waiver of the electronic filing requirement may be requested. 
N.D.C.C. § 57-38-60(12), effective for calendar years 2022 and after.
Either of the following two electronic filing methods may be used:

  Method 1: Taxpayer Access Point (TAP)
    The information returns can be filed in TAP, the Office of State Tax Commissioner’s online tax filing and 
    account access system for businesses. In TAP, the data can be uploaded or manually keyed from the 
    returns. To do so:
    1.  Go to  www.nd.gov/tax/tap.
    2.  If new to TAP, select Sign Up for Access to create an account. If an existing user, select Log On.

                                                www.nd.gov/tax | individualtax@nd.gov 
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   3.  After logging into account, select File W-2s or 1099s and follow the online instructions.
        Tip: If using TAP only to file information returns, select Third party access.
        Need help? Step-by-step instructions on how to file the information returns in TAP can be found at 
        www.nd.gov/tax/W2 under Instructions to efile your W-2s. These instructions also apply to filing 
        Forms 1099, 1042-S, and W-2G reporting North Dakota income tax withholding.
 Method 2: Electronic upload web service through accounting software
   If an employer or other person uses accounting software that supports the transmission of information 
   returns via an upload web service, the information returns can be submitted directly through the 
   software. The software streamlines filing and provides confirmation that the information returns were 
   successfully submitted.
   Anyone interested in incorporating the upload web service into their software or system can find 
   technical information at www.nd.gov/tax/softwaredevelopers under Technical Guidance for Income 
   Tax Withholding.
Please note:
 1.  If the information returns are electronically filed with North Dakota, do not file North Dakota Form 307, 
   Transmittal of Wage and Tax Statement. Form 307 is to be used only if the information returns are filed 
   on paper—see “Paper filing” later in this section.
 2.  A Form 1099 reporting a payment from which North Dakota income tax was withheld must be filed 
   separately using the procedures in this Section 3 of the guideline. This applies even if it was included 
   in the information filed with the IRS under the Combined Federal/State Program. If possible, do 
   not include a Form 1099 reporting North Dakota income tax withholding in a filing under the 
   Combined Federal/State Program.

                   Formatting Form W-2, 1099, 1042-S, and W-2G Data Files
  Form W-2 files must be formatted according to the specifications in SSA Publication 42-007 (EFW2).
  Form 1099 and W-2G files must be formatted according to the specifications in IRS Publication 1220.
  Form 1042-S files must be formatted using the formatting specifications contained in IRS
  Publication 1187.
  For additional technical information on file specifications specific to North Dakota, go to
  www.nd.gov/tax/user/tax-professionals/software-developers.

                            Testing Form W-2 and 1099 Data Files
  The following two secure processes are available for testing W-2 and 1099 file formatting:
  Option 1—Submit file through TAP account
  If filer has access to a TAP account—whether as owner, employee, or third party—a test file can 
  be securely submitted through the account’s messaging feature. Log into TAP account and click 
  “Send message” under the “I Want To” section. Then choose Message Type “10. W2 1099 Test File.” 
  Enter a subject and message, attach the file, and click “Submit.” The test file will be reviewed, and a 
  response message will be sent to the TAP account. The response will either confirm the file passed 
  validation with zero errors or identify any errors in the file and explain how to correct them.

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Option 2—Submit file using “Test W-2 & 1099 Files” feature in TAP
A test file can also be submitted without having, or logging into, a TAP account. In TAP, under 
Resources, click on “Test W-2 & 1099 Files” and follow the instructions for uploading the file. Unlike 
Option 1 above, this feature is limited to providing an immediate response that either confirms zero 
errors or identifies any errors; it does not explain how to correct the errors.
Don’t have a TAP account? To set up a TAP account, go to www.nd.gov/tax/tap and click on “Sign 
Up For Access.”

When To File
Whether filing electronically or on paper, all Forms W-2 and any Forms 1099, 1042-S, and W-2G showing 
North Dakota income tax withholding must be filed with North Dakota on or before the due date for filing 
Form W-2 with the Social Security Administration. N.D.C.C. §§ 57-38-42 and 57-38-60(3)(4)

Failure To File
A penalty of $10 per information return, up to a maximum amount of $2,000, may be assessed for failure to file 
North Dakota information returns. This penalty may be assessed if information returns are not filed within thirty 
days after the Office of State Tax Commissioner provides written notice of the failure to file. N.D.C.C.
§§ 57-38-42(1) and 57-38-60(5)

Corrections To Form W-2 And Forms 1099, 1042-S, And W-2G With Withholding
If a Form W-2c, or a Form 1099, 1042-S, or W-2G with North Dakota income tax withholding, is filed with the 
Internal Revenue Service to report a correction, a copy of the corrected form must be filed with North Dakota. 
This includes any correction, including a change to the name or federal identification number of the employee 
or payee.
If a correction needs to be made only to the state information on the form, and a corrected form is not going to 
be filed for federal purposes, report the correction to North Dakota using a Form W-2c or a Form 1099, 1042-S, 
or W-2G (with the “CORRECTED” box checked). For state-only corrections, the forms can be marked “For 
State Purposes Only.”
For North Dakota purposes, correction forms cannot be electronically filed but must be filed on paper. North 
Dakota Form 307, Transmittal Of Wage And Tax Statement, must be completed and filed with the Form W-2c 
or corrected Forms 1099, 1042-S, and W-2G.

                                          www.nd.gov/tax | individualtax@nd.gov 
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Section 4 - Information Returns For Non-Wage
Payments With No Withholding

                                      IMPORTANT
     This section explains the general year-end information return filing requirements for 
        Forms 1099, 1042-S, and W-2G reporting non-wage payments without North Dakota 
        income tax withholding.
       IMPORTANT—The procedures in this section do not apply to the following information 
        returns:
        o  Forms 1099, 1042-S, and W-2G reporting non-wage payments (other than oil and gas 
         royalty payments) from which North Dakota income tax was withheld. See Section 3.
        o  Forms 1099 and 1042-S reporting oil and gas royalty payments from which North 
         Dakota income tax is required to be withheld under North Dakota Century Code
         § 57-38-59.4. See Section 5.

   CHANGE FOR 2022 AND AFTER - For calendar years 2022 and after, Forms 1099, 1042-S, 
   and W-2G must be filed electronically. See “How And When To File” later in this section.

Who Must File
Every person making certain payments—see “Reportable Payments” below—must file an information return to 
report the payment to North Dakota if both of the following apply: 
 The person resides, owns property, or carries on a trade or business in North Dakota.
 The person is required to file a 1099, 1042-S or W-2G to report the same payment for federal purposes.
   Note: Other types of information returns, such as Forms 1098, 1098-E, 1098-T, or 5498, are not 
   required for North Dakota purposes.
For this purpose, “person” includes an individual, partnership, fiduciary, corporation, limited liability company, 
and an officer or employee of the state of North Dakota or any of its political subdivisions. N.D.C.C.
§§ 57-38-01(9) and 57-38-42(1)

Reportable Payments
For North Dakota purposes, reportable payments include the following:
 Rents, royalties, crop insurance proceeds, taxable prizes and awards, and any other income reportable 
   on Form 1099-MISC.
   Exception: For payments of North Dakota-sourced oil and gas royalties subject to North Dakota 
   income tax withholding, do not use the procedures in this Section 4; instead, see Section 5 for how to 
   report these payments. If North Dakota oil or gas royalty payments and any other reportable payments 
   are reported on the same Form 1099-MISC, the submission of the Form 1099-MISC under the 
   procedures in Section 5 satisfies the North Dakota information return reporting requirements under this 
   Section 4 for the other reportable payments.

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 Payment of compensation for services performed by a nonemployee reportable on Form 1099-NEC.
 Gambling winnings reportable on Form W-2G.
 Unemployment benefits, taxable grants, agricultural payments, and any other income reportable on 
   Form 1099-G.
 Proceeds from real estate transactions, including sales of mineral rights, reportable on Form 1099-S.
 Proceeds from broker and barter exchange transactions reportable on Form 1099-B.
 Gambling winnings, royalties, lease bonuses, compensation for services, and any other income paid to 
   a nonresident alien, foreign partnership or corporation, or a foreign fiduciary of an estate or trust that is 
   reportable on Form 1042-S, provided that the income is sourced, and is subject to income tax, in North 
   Dakota.
   Exception: For payments of North Dakota-sourced oil and gas royalties subject to North Dakota 
   income tax withholding, do not use the procedures in this Section 4; instead, see Section 5 for how to 
   report these payments. If North Dakota oil or gas royalty payments and any other reportable payments 
   are reported on the same Form 1042-S, the submission of the Form 1042-S under the procedures in 
   Section 5 satisfies the North Dakota information return reporting requirements under this Section 4 for 
   the other reportable payments.
 N.D.C.C. § 57-38-42(1)

Nonreportable payments
Except where North Dakota income tax is withheld from the payment, an information return does not have to 
be filed to report the following payments:
 Interest income reportable on Form 1099-INT or 1042-S.
 Original issue discount reportable on Form 1099-OID.
 Dividend income reportable on Form 1099-DIV, 1042-S or 1099-PATR.
 Distribution from a retirement or profit-sharing plan, an IRA, a SEP, or an annuity contract reportable on 
   Form 1099-R or 1042-S.
 Note: If North Dakota income tax is withheld from any of the above payment types, an information return 
 must be filed using the procedures in Section 3 of this guideline.
 N.D.C.C. § 57-38-42(1)

Resident and nonresident individual payees
In the case of an individual payee, this information return reporting requirement applies regardless of 
whether the individual is a resident or nonresident of North Dakota; however, in the case of a nonresident, 
the requirement applies only if the income is sourced in North Dakota. In general, income is sourced in North 
Dakota if it meets any of the following:
 It is attributable to services performed in North Dakota.
 It is derived from tangible property in North Dakota, such as rents, oil and gas royalties, and gain from 
   the sale or exchange of the property.
 It is derived from a trade or business carried on in North Dakota, whether as a sole proprietorship, 
   partnership, S corporation, or limited liability company.

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 It is from an estate or trust, but only to the extent the income is derived from tangible property or a trade 
   or business in North Dakota.
 It is derived from gambling activity carried on in North Dakota.
 N.D.C.C. §§ 57-38-03, 57-38-04, and 57-38-42(1)

State information section on information return
If the information return has a section for providing state information, please complete that section, particularly 
the state abbreviation code (“ND” in the case of North Dakota), to indicate the state in which the income is 
sourced. This is very helpful to both the payee and the Office of State Tax Commissioner.

How And When To File
For North Dakota purposes, the requirement to file information returns is satisfied by filing with the Office of 
State Tax Commissioner a copy of the Form 1099, 1042-S, or W-2G filed with the Internal Revenue Service.
N.D.C.C. § 57-38-42(1)(4)

How to file
2021 calendar year. For calendar year 2021, Forms 1099, 1042-S, and W-2G must be electronically filed if 
there is a requirement to file them electronically for federal purposes and the number of forms required to be 
filed with North Dakota is 10 or more. N.D.C.C. § 57-38-42(1)
Calendar years 2022 and after. For calendar years 2022 and after, all Forms 1099, 1042-S, and W-2G 
must be filed electronically. If an employer or payor can show good cause, a waiver of the electronic filing 
requirement may be requested. N.D.C.C. § 57-38-42(7)
The following electronic filing methods are available:

 Method 1: Taxpayer Access Point (TAP)
   The information returns can be filed in TAP, the Office of State Tax Commissioner’s online tax filing and 
   account access system for businesses. In TAP, the data can be uploaded or manually keyed from the 
   returns. To do so:
   1.  Go to  www.nd.gov/tax/tap.
   2.  If new to TAP, select Sign Up for Access to create an account. If an existing user, select Log On.
   3.  After logging into account, select File W-2s or 1099s and follow the online instructions.
        Tip: If using TAP only to file information returns, select Third party access.
        Need help? Step-by-step instructions on how to file the information returns in TAP can be found at 
        www.nd.gov/tax/W2 under Instructions to efile your 1099s.

 Method 2: Electronic upload web service through accounting software
   If an employer, payor or other person uses accounting software that supports the transmission of 
   information returns via an upload web service, the information returns can be submitted directly through 
   the software. The software streamlines filing and provides confirmation that the information returns 
   were successfully submitted.
   Anyone interested in incorporating the upload web service into their software or system can find 
   technical information at www.nd.gov/tax/softwaredevelopers under Technical Guidance for Income 
   Tax Withholding.

                                                      www.nd.gov/tax | individualtax@nd.gov 
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 Method 3: Combined Federal/State Program
   North Dakota participates in the Combined Federal/State Program offered by the IRS. Rather than 
   submitting Form 1099 information separately to the IRS and North Dakota, the payor can request the 
   IRS to provide a copy of the information to North Dakota. Only Form 1099 information can be submitted 
   under this program. N.D.C.C. § 57-38-42(5)
   If this option is chosen, please note the following:
     The payor does not need to notify the Office of State Tax Commissioner that Form 1099 information 
        will be filed through the Combined Federal/State Program.
     Format Forms 1099 using the specifications in the most current version of IRS Publication 1220. Be 
        sure to provide the state data in the “B” record.
     Forms 1099-NEC, 1042-S, and W-2G cannot be filed through the Combined Federal/State Program 
        and must be filed with North Dakota using Method 1 (TAP) or Method 2 (upload web service).
     A Form 1099 reporting a payment from which North Dakota income tax was withheld must be filed 
        separately with North Dakota using the procedures in Section 3 of this guideline. This applies even 
        if it was included in the information filed with the IRS under the Combined Federal/State Program. If 
        possible, please do not include a Form 1099 reporting North Dakota income tax witholding in 
        a filing under the Combined Federal/State Program.

                     Formatting Form 1099, 1042-S, and W-2G Data Files
  Form 1099 and W-2G files must be formatted according to the specifications in IRS Publication 1220.
  Form 1042-S files must be formatted using the formatting specifications contained in IRS
  Publication 1187.
  For additional technical information on file specifications specific to North Dakota, go to
  www.nd.gov/tax/user/tax-professionals/software-developers.

                             Testing Form 1099 Data Files
  The following two secure processes are available for testing 1099 file formatting:
  Option 1—Submit file through TAP account
  If filer has access to a TAP account—whether as owner, employee, or third party—a test file can 
  be securely submitted through the account’s messaging feature. Log into TAP account and click 
  “Send message” under the “I Want To” section. Then choose Message Type “10. W2 1099 Test File.” 
  Enter a subject and message, attach the file, and click “Submit.” The test file will be reviewed, and a 
  response message will be sent to the TAP account. The response will either confirm the file passed 
  validation with zero errors or identify any errors in the file and explain how to correct them.
  Option 2—Submit file using “Test W-2 & 1099 Files” feature in TAP
  A test file can also be submitted without having, or logging into, a TAP account. In TAP, under 
  Resources, click on “Test W-2 & 1099 Files” and follow the instructions for uploading the file. Unlike 
  Option 1 above, this feature is limited to providing an immediate response that either confirms zero 
  errors or identifies any errors; it does not explain how to correct the errors.
  Don’t have a TAP account? To set up a TAP account, go to www.nd.gov/tax/tap and click on “Sign 
  Up For Access.”

                                             www.nd.gov/tax | individualtax@nd.gov 
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When To File
Whether filing electronically or on paper, the information returns must be filed with the Office of State Tax 
Commissioner on or before the due date for filing Forms 1099, 1042-S or W-2G with the Internal Revenue 
Service. Forms 1099 filed through the Combined Federal/State Program are considered timely filed with North 
Dakota if timely filed with the IRS. N.D.C.C. § 57-38-42(3)

Failure To File
A penalty of $10 per information return, up to a maximum amount of $2,000, may be assessed for failure to file 
North Dakota information returns. This penalty may be assessed if information returns are not filed within thirty 
days after the Office of State Tax Commissioner provides written notice of the failure to file. N.D.C.C.
§ 57-38-42(6)

Corrections To Forms 1099, 1042-S, And W-2G
If a corrected Form 1099, 1042-S, or W-2G is filed with the Internal Revenue Service, a copy of the corrected 
form must be filed with North Dakota. This includes any correction, including a change to the recipient’s name 
or federal identification number.
If a correction needs to be made only to the state information on the form, and a corrected form is not going to 
be filed for federal purposes, report the correction to North Dakota using a Form 1099, 1042-S, or W-2G (with 
the “CORRECTED” box checked). For state-only corrections, the forms can be marked “For State Purposes 
Only.”
For North Dakota purposes, corrected Forms 1099, 1042-S, and W-2G cannot be electronically filed but must 
be filed on paper. There is no state transmittal form to be submitted with the corrected forms; submit a copy of 
the Form 1096 filed with the corrected forms for federal purposes.

                                           www.nd.gov/tax | individualtax@nd.gov 
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Section 5 - Income Tax Withholding From Oil And Gas
Royalty Payments

   This section applies to persons responsible for making oil and gas royalty payments to 
        owners of royalty interests in oil and gas produced in North Dakota.
   Part 1 of this section explains the requirements and procedures for withholding North 
        Dakota income tax from royalty payments made to nonresident individuals and non-North 
        Dakota domiciled business entities under N.D.C.C. § 57-38-59.4.

   Part 2 of this section explains the year-end information return filing requirements for 
        Forms 1099 and 1042-S reporting North Dakota oil and gas royalty payments subject to 
        North Dakota income tax withholding.

                               CHANGES FOR 2022 AND AFTER
   For calendar years 2022 and after, Form RWT-941, Royalty Withholding Return, and 
        the tax due on it must be submitted electronically if the amount of North Dakota income 
        tax withheld during the previous calendar year was $1,000 or more. See “Reporting And 
        Payment Of Tax Withheld” in Part 1 of this section.

   For calendar years 2022 and after, Forms 1099  and 1042-S reporting North Dakota oil and  
        gas royalty payments must be filed electronically. See Part 2 of this section.

Part 1 - Withholding Requirement

Definitions

Unless otherwise stated, the following definitions of terms used in this section apply:
Non-North Dakota domiciled business entity means a business entity with a commercial domicile outside 
North Dakota. Commercial domicile is the principal place from which the trade or business is directed or 
managed. A business entity includes a partnership, corporation, and any person other than an individual.
Nonresident individual means an individual who is not a legal resident of North Dakota for the entire year. 
This includes an individual who is a legal resident of a foreign country. Legal residence refers to an individual’s 
place of permanent residence to which an individual always returns whenever absent from it. Absences 
attributable to employment, vacation, military service, attending college, etc., do not affect an individual’s place 
of legal residence if the individual intends on returning to it when the activity is completed.
North Dakota oil or gas royalty means a payment to a royalty owner that represents the royalty owner’s 
share of receipts from the sale of oil or gas extracted from within the boundaries of North Dakota. The amount 
that is subject to North Dakota income tax withholding is the gross amount of the North Dakota oil or gas 
royalty reported in Box 2 of the federal or state-only Form 1099-MISC or 1042-S.
Person means an individual, estate, trust, partnership, corporation, limited liability company, and any other 
type of entity recognized under North Dakota law. N.D.C.C. § 57-38-01(9)

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Remitter means a person responsible for issuing a royalty payment to a royalty owner. A remitter may be the 
person that produces the oil or gas or the person that distributes the royalty on behalf of a producer. In all 
cases, the remitter is the person whose name and federal employer identification number (FEIN) are required 
to be entered in the payer boxes on the federal or state-only Form 1099-MISC or 1042-S. N.D.C.C.
§ 57-38-59.4(1)(b)
Royalty owner means a person entitled to receive periodic royalty payments for a nonworking interest in 
the production of oil or gas, and the person to whom a remitter is required to issue a federal or state-only 
Form 1099-MISC or 1042-S to report the royalty payments. If a royalty owner is a single-member limited 
liability company (LLC) that is a disregarded entity for federal income tax purposes, the owner of the single-
member LLC is the royalty owner, and the federal or state-only Form 1099-MISC or 1042-S must be issued 
in the name and taxpayer identification number (social security number or FEIN) of the LLC’s owner. (Note: If 
a remitter receives a federal Form W-9 on which it is indicated that the royalty owner is a single-member LLC 
that is disregarded, the name and taxpayer identification number on the Form W-9 should be that of the LLC’s 
owner instead of the LLC itself.) N.D.C.C. § 57-38-59.4(1)(c)
State-only Form 1099-MISC or 1042-S means a federal Form 1099-MISC or 1042-S prepared on a pro forma 
basis for North Dakota income tax purposes for a royalty owner with North Dakota oil or gas royalty payments 
for whom a Form 1099-MISC or 1042-S is not required to be issued for federal income tax purposes. See 
“Information returns for royalty owners” later in this guideline for more information.

Who Must Withhold
A remitter is required to withhold North Dakota income tax from North Dakota oil or gas royalty payments made 
to nonresident individuals and non-North Dakota domiciled business entities. N.D.C.C. § 57-38-59.4(2)

Determining residency or commercial domicile status of a royalty owner
A remitter needs to know the residency or commercial domicile status of a royalty owner. The remitter may use 
any reasonable means to determine the status. This may include reliance on the address to which a royalty 
payment is mailed or the address provided by the royalty owner on a federal Form W-9. In some cases, a 
remitter may need to contact the royalty owner to obtain the information.

Nonresident alien
This withholding requirement applies to an individual royalty owner who is a nonresident alien of the United 
States. It applies even if the royalty income is exempt from U.S. income tax because of an income tax treaty 
between the United States and a foreign country. Except where an income tax treaty between the United 
States and foreign country specifically exempts oil or gas royalty income from taxation by a U.S. state, income 
tax treaties between the United States and foreign countries are not recognized for North Dakota income tax 
purposes, and North Dakota oil or gas royalty income is subject to North Dakota income tax.

Voluntary agreement to withhold
A remitter and a royalty owner other than a nonresident individual or non-North Dakota domiciled business 
entity may mutually agree to have North Dakota income tax withheld on a voluntary basis from the royalty 
owner’s North Dakota oil or gas royalty payments. If North Dakota income tax is voluntarily withheld, the 
remitter must comply with the registration, reporting, and payment requirements explained in this section of the 
guideline.

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Accounting service provider
A remitter may arrange with a third-party accounting service to handle the withholding, reporting, and payment 
duties on behalf of the remitter. However, the remitter remains responsible for any failure to comply with any of 
the withholding requirements. See “Registration requirement” later in this guideline for more information.

Exemptions From Withholding Requirement
A remitter does not have to withhold North Dakota income tax if any of the following exemptions apply:

Exemption 1: Qualifying Small Producer 
A remitter does not have to withhold North Dakota income tax from North Dakota oil and gas royalty payments 
during the calendar year if the remitter is an oil or gas producer whose production in North Dakota during the 
preceding calendar year was less than 350,000 barrels of oil or 500 million cubic feet of gas. However, the 
remitter must still file an annual report—see “Annual reporting requirement” below. This exemption does not 
prohibit a remitter from voluntarily withholding income tax from the royalty payments made to royalty owners.
N.D.C.C. § 57-38-59.4(4)(a)
Measuring the production threshold. The volume of production used to determine whether the threshold is 
exceeded is the amount reported by a well operator to the North Dakota Industrial Commission, Oil and Gas 
Division, on Forms 5 and 5B for the preceding calendar year. If the production data reported to the Industrial 
Commission by the remitter includes production attributable to other producers, only use the production data 
for the remitter’s respective interest in the production for purposes of the production threshold. If the remitter 
acquired or disposed of production interests during the calendar year, only use the production attributable to 
the period the remitter had an interest in the production.
Annual reporting requirement. Even though a remitter is not required to withold tax because of this 
exemption, the remitter is still subject to the information return filing requirements—see “Information Returns 
For Oil and Gas Royalty Payments” in Part 2 of this section.

Exemption 2: Payments To Certain Types Of Royalty Owners
A remitter is not required to withhold North Dakota income tax from North Dakota oil or gas royalty payments 
made to any of the following entities:
 The United States or any of its agencies, or any state and its political subdivisions.
 A federally recognized Indian tribe with respect to on-reservation oil and gas production pursuant to a 
   lease entered under the Mineral Leasing Act of 1938 [25 U.S.C. 396a – 396g].
 The United States as trustee for individual Indians.
 A publicly traded partnership, as defined in Internal Revenue Code § 7704, that is not treated as 
   a corporation. But see “Exempt status notification” below. Also see “Reporting by a publicly traded 
   partnership” in Part 2 of this section.
 An organization that is exempt from North Dakota income tax under N.D.C.C. § 57-38-09. But see 
   “Exempt status notification” below. This exemption does not affect the taxation of an entity’s unrelated 
   business taxable income (UBTI), if any, under North Dakota income tax law.
 The same person or entity as the remitter.
 N.D.C.C. § 57-38-59.4(3)

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Exempt status notification. A publicly traded partnership or an organization exempt from North Dakota 
income tax must complete Form RWT-EXM, Exemption Status For Royalty Withholding For Publicly Traded 
Partnership And Tax-Exempt Organization. A copy of Form RWT-EXM must be provided to each remitter and 
the Office of State Tax Commissioner to verify its exempt status. This form needs to be filed only one time; a 
new form does not have to be filed each year. If the entity receives North Dakota oil or gas royalty payments 
from more than one remitter, the entity should provide a copy of Form RWT-EXM to each remitter. If an entity 
fails to meet the definition of a publicly traded partnership or loses its exempt status under N.D.C.C.
§ 57-38-09, the entity must complete a new Form RWT-EXM on which it indicates that it is no longer exempt 
from withholding and provide a copy to the remitter and the Office of State Tax Commissioner. N.D.C.C.
§ 57-38-59.4(5)(b)

Exemption 3: Payment Amount Below Statutory Threshold
Upon written request, the Office of State Tax Commissioner will allow a remitter to forego withholding North 
Dakota income tax from any North Dakota oil or gas royalty payment that is less than either of the following 
statutory thresholds:
   For royalty payments made on a quarterly basis, no withholding is required from a payment that is less 
     than $600.
   For royalty payments made on other than a quarterly basis—for example, monthly or semiannually—no 
     withholding is required from a payment that, when annualized, is less than $1,000.
     o  Example 1: If a remitter makes royalty payments monthly, no withholding is required if the amount 
        of the payment is $83.33 or less. $83.33, when annualized, equals $999.96 ($83.33 x 12 months), 
        which is less than $1,000. Withholding would be required on a monthly payment that is more than 
        $83.33.
     o  Example 2: If a remitter makes royalty payments semiannually, no withholding is required if the 
        amount of the payment is $499.99 or less. $499.99, when annualized, equals $999.98 ($499.99 x 
        2 semiannual periods), which is less than $1,000. Withholding would be required on a semiannual 
        payment that is $500 or more.
Making the written request. A remitter may request to use this exemption by completing the applicable part 
of the Application to Register for Royalty Withholding, the registration form that all remitters must complete 
and file with the Office of State Tax Commissioner. If a remitter has already filed the registration form without 
requesting the use of this exemption, the remitter may submit a letter to the Office of State Tax Commissioner 
to request the use of the exemption under N.D.C.C. § 57-38-59.4(6). For more information, see “Remitter 
Registration” later in this section. N.D.C.C. § 57-38-59.4(6)

Amount To Withhold
The amount to withhold is determined by multiplying the gross amount of the North Dakota oil or gas royalty 
by 2.15%.* This applies to all types of royalty owners, regardless of whether the royalty owner is an individual, 
estate, trust, partnership, or other type of business entity. N.D.C.C. § 57-38-59.4(2)
   * The withholding rate is equal to the highest marginal individual income tax rate reduced by 0.75%. 
     Currently, the highest marginal individual income tax rate is 2.90%. This rate is subject to change by the 
     North Dakota Legislature.

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Funds held in trust. Any North Dakota income tax withheld from royalty payments, whether or not properly 
withheld, is held by the remitter in trust for the State of North Dakota. All amounts withheld must be submitted 
to the Office of State Tax Commissioner in the manner and at the time prescribed by law, as explained in this 
guideline. N.D.C.C. §§ 57-38-59.4(2) and 57-38-60(8)

Remitter Registration
Every remitter must register with the Office of State Tax Commissioner by completing and filing an Application 
to Register for Royalty Withholding. A remitter must register even if any of the exceptions to the withholding 
requirement apply or the remitter does not withhold any tax for any reporting period. Every remitter is subject to 
reporting requirements regardless of whether the remitter is required to withhold any tax—see “Reporting and 
Payment of Tax Withheld” in Part 2 of this section for more information. N.D.C.C. § 57-38-59.4(2) and
N.D. Admin. Code § 81-03-03.1-02

Accounting service provider
A remitter that arranges with another party to handle the remitter’s royalty withholding filing and payment 
duties must complete the appropriate part of the registration form to designate and identify the provider. The 
designation of the provider on the registration form will constitute the remitter’s consent for the Office of State 
Tax Commissioner to communicate directly with the provider about the remitter’s royalty withholding returns 
and payments. A remitter may revoke the provider designation and consent by completing and filing a new 
Application to Register for Royalty Withholding on which the remitter requests the revocation.

Request to forego withholding from a payment below statutory threshold
If a remitter qualifies for Exemption 3 under “Exemptions From Withholding Requirement,” the remitter may 
satisfy the written request requirement by completing the appropriate part of the registration form.

Change in FEIN
If a remitter’s FEIN is changed for any reason, or the quarterly or annual return will be filed under a different 
FEIN, the remitter must complete and file a new Application to Register for Royalty Withholding to register the 
change.

Cash deposit or bond
If required by the Office of State Tax Commissioner, a remitter must make a cash deposit or post a bond or 
undertaking executed by a surety company authorized to do business in North Dakota. The amount of the cash 
deposit, bond, or undertaking must be reasonably calculated to ensure the payment of the tax withheld by the 
remitter. N.D.C.C. §§ 57-38-59.4(2) and 57-38-60(9)

Closing an account
If a remitter ceases activity as a remitter or will no longer be making North Dakota oil or gas royalty payments, 
the remitter must notify the Office of State Tax Commissioner to close the withholding account. This can be 
done on the final Form RWT-941 or final Form RWT-1096 filed for the closing year, or through Taxpayer Access 
Point (TAP) at www.nd.gov/tax/tap, by letter, or sending an email to taxregistration@nd.gov.
Note: Form RWT-1096, Royalty Withholding Annual Return and Transmittal, and Forms 1099-MISC and
1042-S must be filed for the year the account is closed. N.D.C.C. §§ 57-38-59.4(2) and 57-38-61

                                                    www.nd.gov/tax | individualtax@nd.gov 
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Part 2 - Reporting And Payment Of Tax Withheld

Form RWT-941 - Royalty Withholding Return
Form RWT-941, North Dakota Royalty Withholding Return, must be filed to report and remit the amount of 
North Dakota income tax withheld during the period for which it is filed. Form RWT-941 must be filed on a 
calendar quarter basis or, if eligible, on a monthly or annual basis—see “When to file Form RWT-941” later in 
this section. Form RWT-941 must be filed even if a remitter did not pay any royalties or did not withhold any tax 
during the period covered by the return. N.D.C.C. §§ 57-38-59.4(2) and 57-38-60(1)(2)

In the case of a new remitter, or an existing remitter currently filing on paper, a paper Form RWT-941 is 
automatically mailed to the remitter prior to the end of each reporting period (quarterly, monthly, or annually, 
whichever applies). Failure to receive the form for any reason does not relieve the obligation to timely file or 
pay. Form RWT-941 can be obtained on the Office of State Tax Commissioner’s website at
www.nd.gov/tax/user/businesses/formspublications/royalty-withholding/forms--instructions---royalty-
withholding. If a remitter is required to electronically file Form RWT-941, or a remitter chooses to file 
Form RWT-941 electronically, the paper Form RWT-941 will no longer be mailed to the remitter—see “Filing 
and Payment Methods For Form RWT-941” below.

Filing And Payment Methods For Form RWT-941

2021 calendar year. For the 2021 calendar year, Form RWT-941 may be filed electronically or on paper.
Calendar years 2022 and after. Starting with the 2022 calendar year, Form RWT-941 and the tax due on it 
must be submitted electronically if the amount required to be withheld from North Dakota oil and gas royalty 
payments during the previous calendar year is $1,000 or more. If a remitter can show good cause, the remitter 
may request a waiver of the electronic filing requirement. N.D.C.C. §§ 57-38-59.4(2) and 57-38-60(2)

Electronic filing and payment options
Form RWT-941 and the tax due on it can be submitted electronically in the same transaction using either of the 
following two methods:
     Taxpayer Access Point (TAP) - If a remitter has a TAP account with the Office of State Tax 
       Commissioner, Form RWT-941 and any tax due on it can be electronically submitted through the 
       account. If there is a tax due, it can be paid through an ACH Debit transaction, which authorizes 
       the Office of State Tax Commissioner to withdraw the funds from the remitter’s checking or savings 
       account.
       Don’t have a TAP account? To set up a TAP account, go to www.nd.gov/tax/tap and click on “Sign 
       Up For Access.”
       ACH Debit block: If a remitter has placed an ACH Debit block on the remitter’s bank account, 
       the remitter must contact the financial institution to authorize an ACH Debit payment prior to the 
       transaction to prevent rejection of the payment. The financial institution will need the Office of State Tax 
       Commissioner’s Originator ID number for this purpose. Use the applicable Originator ID below:
          To authorize the Office of State Tax Commissioner to debit a savings or checking account, use 
           Originator ID number 1450309764.
          To pay with a debit card, use Originator ID number 1621868563.

                                                     www.nd.gov/tax | individualtax@nd.gov 
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 ACH Credit – If  there is a tax due on Form RWT-941, both the return and the tax due can be 
   electronically submitted through an ACH Credit transaction, which is an electronic transfer of funds from 
   the remitter’s bank to the Bank of North Dakota. The remitter initiates this through its own bank and is 
   responsible for any fees to make the transfer. The ACH Credit transaction satisfies the Form RWT-941 
   filing requirement. For more information, go to www.nd.gov/tax and click on “Make A Payment,” then 
   select “ACH Credit Information.” Note: The addenda record layout specified for “Royalty Withholding 
   Tax” must be used.
If a remitter provided an email address on the application form when registering for the royalty withholding 
account, a timely reminder to file will be sent to that email address. Failure to receive a reminder does not 
relieve the remitter’s obligation to timely file Form RWT-941.

Paper filing and payment options
Form RWT-941 may be filed on paper only if a remitter is not required to file it electronically or has obtained a 
waiver of the electronic filing requirement.
Payment options for paper filers. If filing a paper Form RWT-941, payment of the tax due on the form can be 
electronically submitted through the remitter’s TAP account or through the payment options at
www.nd.gov/tax/tap. If paying with a paper check, submit the check with Form RWT-941.

When to file Form RWT-941
Except as provided under “Monthly filing” or “Annual filing” below, Form RWT-941 must be filed for each 
calendar quarter on or before the following due dates:
        Calendar Quarter                    Due Date 
        January, February, and March        April 30 
        April, May, and June                July 31 
        July, August, and September         October 31 
        October, November, and December     January 31    N.D.C.C. §§ 57-38-59.4(2) and 57-38-60(1) 

Monthly filing. In lieu of filing and paying on a quarterly basis, a remitter may elect to file Form RWT-941 and 
pay the tax due monthly. This option is available only if a remitter files and pays electronically. A remitter must 
contact the Office of State Tax Commissioner to arrange for monthly filing and payment. If this election is made 
and approved, a remitter must continue to file and pay monthly until it obtains permission to change.
Annual filing. In lieu of filing and paying on a quarterly basis, a remitter may elect to file Form RWT-941 and 
pay the tax due on an annual basis if all the following conditions apply:
 The remitter had an obligation to file Form RWT-941 for all four quarters of the preceding calendar year.
 The remitter filed Form RWT-941 and paid the full amount of North Dakota income tax required to be 
   withheld on or before the due date for all four quarters of the preceding calendar year. 
 The total North Dakota income tax withheld by the remitter during the preceding calendar year was less 
   than $1,000.
A remitter must contact the Office of State Tax Commissioner to arrange for annual filing and payment. 
N.D.C.C. §§ 57-38-59.4(2) and 57-38-60(1)

                                                      www.nd.gov/tax | individualtax@nd.gov 
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Failure To Timely File Or Pay
If Form RWT-941 is not filed, or if full payment is not remitted, on or before the due date, penalty and interest 
applies as follows:
   Penalty
       Late filed return—If an original return is not filed by the due date, the penalty is 5% of the tax due or 
         $5.00, whichever is greater, for the month in which the return is due, plus an additional 5% for each 
         additional month (or fraction of a month) during which the tax remains unpaid, not to exceed 25% of 
         the tax due.
       Late payment—If an original return is filed on or before the due date, but the full amount of tax due 
         on it is not paid by the due date, the penalty is 5% of the tax due or $5.00, whichever is greater.
       Amended return—If an amended return is filed after the due date of the original return, and there is 
         a tax due on the amended return, a penalty of 5% of the tax due on the amended return or $5.00, 
         whichever is greater, applies.
     N.D.C.C. §§ 57-38-45(2), 57-38-59.4(2), and 57-38-61

   Interest. Interest accrues at the rate of 1% of the tax due for each month (or fraction of a month) the tax 
     remains unpaid, starting with the month following the month in which the original return was due. This 
     also applies to tax due on an amended return filed after the due date of the original return. N.D.C.C.
     §§ 57-38-45(1), 57-38-59.4(2), and 57-38-61

Amended return
Form RWT-941 is also used to correct a previously filed Form RWT-941. An amended Form RWT-941 cannot 
be electronically filed; it must be filed on paper.

Part 3 - Information Returns For Oil And Gas Royalty Payments
Every remitter must file with the Office of State Tax Commissioner a copy of all federal Forms 1099-MISC and 
1042-S reporting North Dakota oil or gas royalty payments. This applies whether or not North Dakota income 
tax was withheld from the payments. For North Dakota purposes, the requirement to file information returns is 
satisfied by filing with North Dakota a copy of the Form 1099-MISC or 1042-S filed with the Internal Revenue 
Service. N.D.C.C. §§ 57-38-59.4(2) and 57-38-60(3)(4)
State-only Form 1099-MISC or 1042-S. If a remitter is not required to file a federal Form 1099-MISC 
or 1042-S for a royalty owner for federal income tax purposes—for example, the royalty owner is a 
corporation—the remitter must prepare and file a copy of a state-only Form 1099-MISC or 1042-S. The 
state-only Form 1099-MISC or 1042-S must show the same information that would have been reported on 
a federal Form 1099-MISC or 1042-S had one been required to be filed for federal income tax purposes. 
Note: A reference to Form 1099-MISC or 1042-S in this section of the guideline includes a state-only 
Form 1099-MISC or 1042-S. N.D.C.C. §§ 57-38-56, 57-38-59.4(2), 57-38-60, and 57-38-61 

State information. Be sure to complete the state information boxes on the Form 1099-MISC or 1042-S to 
identify the state, provide the remitter’s federal identification number, and show the North Dakota income tax 
withheld.
Multiple types of payments on same Form 1099-MISC or 1042-S. If North Dakota oil or gas royalty 
payments and any other type of reportable payments (identified in Section 4 of this guideline) are reported on 
the same Form 1099-MISC or 1042-S, the submission of the Form 1099-MISC or 1042-S under the procedures 
in this Section 5 satisfies the North Dakota information return reporting requirements under Section 4 for the 
other reportable payments.

                                                     www.nd.gov/tax | individualtax@nd.gov 
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Information returns for royalty owners. On or before January 31 following the end of the calendar year, 
a remitter must provide each royalty owner a copy of the federal or state-only Form 1099-MISC or 1042-S 
showing the amount of North Dakota oil or gas royalties paid and the amount of North Dakota income tax 
witheld from the payments.

How And When To File Forms 1099-MISC And 1042-S

How to file
2021 calendar year. For calendar year 2021, Forms 1099-MISC and 1042-S must be electronically filed if 
there is a requirement to file them electronically for federal purposes and the number of forms required to 
be filed with North Dakota is 10 or more. An accounting service provider must file the forms electronically, 
regardless of the number of forms. N.D.C.C. §§ 57-38-59.4(2) and 57-38-60(11)(12), effective for calendar 
years before 2022.
Calendar years 2022 and after. For calendar years 2022 and after, Forms 1099-MISC and 1042-S must be 
filed electronically. If a remitter can show good cause, the remitter may request a waiver of the electronic filing 
requirement. N.D.C.C. §§ 57-38-59.4(2) and 57-38-60(12), effective for calendar years 2022 and after.

Either of the following electronic filing methods may be used:

 Method 1: Taxpayer Access Point (TAP)
   The information returns can be filed in TAP, the Office of State Tax Commissioner’s online tax filing and 
   account access system for businesses. In TAP, the data can be uploaded or manually keyed from the 
   returns. To do so:
   1.  Go to  www.nd.gov/tax/tap.
   2.  If new to TAP, select Sign Up for Access to create an account. If an existing user, select Log On.
   3.  After logging into account, select File W-2s or 1099s and follow the online instructions.
        Tip: If using TAP only to file information returns, select Third party access.
        Need help? Step-by-step instructions on how to file the information returns in TAP can be found at 
        www.nd.gov/tax/W2 under Instructions to efile your 1099s.

 Method 2: Electronic upload web service through accounting software
   If a remitter uses accounting software that supports the transmission of information returns via an 
   upload web service, the information returns can be submitted directly through the software. The 
   software streamlines filing and provides confirmation that the information returns were successfully 
   received and processed.
   Anyone interested in incorporating the upload web service into their software or system can find 
   technical information at www.nd.gov/tax/softwaredevelopers under Technical Guidance for Income 
   Tax Withholding.

Please note:
   1.  Even if Forms 1099-MISC and 1042-S are electronically filed, North Dakota Form RWT-1096 
        must be filed separately on paper—see “Form RWT-1096, Royalty Withholding Annual Return 
        and Transmittal” later in this section for more information. If Forms 1099-MISC and 1042-S are 
        electronically filed, do not submit paper copies of the forms with Form RWT-1096; however, the 
        date of the electronic transmission must be provided on Form RWT-1096.

                                               www.nd.gov/tax | individualtax@nd.gov 
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 2.  Forms 1099-MISC reporting North Dakota oil and gas royalty payments subject to North Dakota 
        income tax withholding must be filed using the procedures in this section of the guideline. 
        Filing the forms through the Combined Federal/State Program does not satisfy the reporting 
        requirements of this section. If possible, do not include a Form 1099-MISC reporting North 
        Dakota income tax withholding in a filing under the Combined Federal/State Program.

                      Formatting Form 1099-MISC and 1042-S Data Files
 Form 1099-MISC files must be formatted according to the specifications in IRS Publication 1220.
 Form 1042-S files must be formatted using the formatting specifications contained in IRS
 Publication 1187.
 For additional technical information on file specifications specific to North Dakota, go to
 www.nd.gov/tax/user/tax-professionals/software-developers.

                           Testing Form 1099-MISC Data Files
 The following two secure processes are available for testing the formatting of a Form 1099-MISC 
 data file:
 Option 1—Submit file through TAP account
 If filer has access to a TAP account—whether as owner, employee, or third party—a test file 
 can be securely submitted through the account’s messaging feature. Log into TAP account and 
 click “Send message” under the “I Want To” section. Then choose Message Type “10. W2 1099 
 Test File.” Enter a subject and message, attach the file, and click “Submit.” The test file will be 
 reviewed, and a response message will be sent to the TAP account. The response will either 
 confirm the file passed validation with zero errors or identify any errors in the file and explain how 
 to correct them.
 Option 2—Submit file using “Test W-2 & 1099 Files” feature in TAP
 A test file can also be submitted without having, or logging into, a TAP account. In TAP, under 
 Resources, click on “Test W-2 & 1099 Files” and follow the instructions for uploading the file. 
 Unlike Option 1 above, this feature is limited to providing an immediate response that either 
 confirms zero errors or identifies any errors; it does not explain how to correct the errors.
 Don’t have a TAP account? To set up a TAP account, go to www.nd.gov/tax/tap and click on 
 “Sign Up For Access.”

Paper filing
Unless a remitter has requested and been granted a waiver of the electronic filing requirement, 
Forms 1099-MISC and 1042-S must be electronically filed. If a waiver is obtained and paper forms are going 
to be filed, submit the paper copies with Form RWT-1096—see “Form RWT-1096—Royalty Withholding 
Annual Return And Transmittal” below.

When to file Forms 1099-MISC and 1042-S
Forms 1099-MISC and 1042-S must be filed with Form RWT-1096, which is due on or before February 28 
following the end of the calendar year—see “Form RWT-1096 - Royalty Withholding Annual Return And 
Transmittal” below.

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Failure to file
A penalty of $10 per information return, up to a maximum amount of $2,000, may be assessed for failure to file 
North Dakota information returns. This penalty may be assessed if information returns are not filed within thirty 
days after the Office of State Tax Commissioner provides written notice of the failure to file. N.D.C.C.
§§ 57-38-59.4(2) and 57-38-60(5)

Corrections to Forms 1099-MISC and 1042-S
If a corrected Form 1099-MISC or 1042-S reporting North Dakota oil or gas royalty payments is filed with the 
Internal Revenue Service, a copy of the corrected form must be filed with North Dakota. This includes any 
correction, including a change to the name or federal identification number of the employee or payee.
If a correction needs to be made only to the state information on the form, and a corrected form is not going to 
be filed for federal purposes, report the correction to North Dakota using a Form 1099-MISC or 1042-S (with 
the “CORRECTED” box checked). For state-only corrections, the forms can be marked “For State Purposes 
Only.” For North Dakota purposes, corrected forms cannot be electronically filed but must be filed on paper. 
North Dakota Form RWT-1096, Royalty Withhholding Annual Return and Transmittal, must be completed and 
filed with the corrected Forms 1099-MISC or 1042-S.

Form RWT-1096 - Royalty Withholding Annual Return And Transmittal

All remitters must file Form RWT-1096, Royalty Withholding Annual Return and Transmittal, to report and 
reconcile the North Dakota income tax withheld and remitted for the calendar year.
Small producing remitter. Even if a remitter qualifies for the small producing remitter exemption, the remitter 
still must file Form RWT-1096 to report the North Dakota oil or gas royalties paid. The remitter must report the 
amount of oil or gas production for the preceding calendar year on Form RWT-1096 to certify the remitter’s 
eligibility for the exemption.
IMPORTANT—Paper filing only. Currently, Form RWT-1096 cannot be filed electronically; it must be 
filed on paper. This applies even if Forms 1099-MISC and 1042-S are electronically filed. A preaddressed 
Form RWT-1096 is mailed to every registered remitter in early January following the end of the calendar 
year. Failure to receive the form for any reason does not relieve the obligation to timely file the form. 
Form RWT-1096 can be obtained on the Office of State Tax Commissioner’s website at www.nd.gov/tax.
When to file Form RWT-1096 
Form RWT-1096 must be filed on or before February 28 following the end of the calendar year.
                              Page 22
Reporting by a Publicly Traded Partnership
A royalty owner that is a publicly traded partnership must electronically transmit a copy of all of its federal 
Schedule K-1 forms to the Office of State Tax Commisisoner if (1) the publicly traded partnership’s North 
Dakota oil or gas royalty payments are exempt from North Dakota income tax withholding and (2) the publicly 
traded partnership electronically files its federal Schedule K-1 forms with the IRS. Contact the Office of State 
Tax Commissioner for instructions on how to submit this information. N.D.C.C. § 57-38-59.4(5)(a)

                                                   www.nd.gov/tax | individualtax@nd.gov 
                                     600 E. Boulevard Ave., Dept 127 | Bismarck, ND 58505-0599 
Page 30                              701-328-1247 | Hearing/Speech Impaired: 800.366.6888



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Income Tax Withholding &
Information Returns Guideline

Assistance
For a list of Frequently Asked Questons, go to www.nd.gov/tax/faqs.

Phone:   701-328-1248
         Speech/hearing impaired – call Relay North Dakota at 1-800-366-6888
Fax:     701-328-0146

Email:   withhold@nd.gov
Website: www.nd.gov/tax
Write:   Office of State Tax Commissioner
         600 E Boulevard Ave., Dept. 127
         Bismarck, ND 58505-0599
Visit:   State Capitol Building, 8th floor
         Monday through Friday (except state holidays) 8:00 AM to 5:00 PM

Registration Assistance

Phone:   701-328-1241
Fax:     701-328-0332

Email:   taxregistration@nd.gov

Technical Assistance

Email:   magmedia@nd.gov

                                               www.nd.gov/tax | individualtax@nd.gov 
                                600 E. Boulevard Ave., Dept 127 | Bismarck, ND 58505-0599 
Page 31                                   701-328-1247 | Hearing/Speech Impaired: 800.366.6888






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