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2022
NORTH DAKOTA
S CORPORATION INCOME TAX
FORM 60
Includes: Schedule Fact
Schedule BG
Schedule K
Schedule KS
Schedule K-1
Photo credit:
ND Tourism
Tax forms, guidelines, and more are
available at www.tax.nd.gov.
Email questions to individualtax@nd.gov.
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Contents Need help?
Where to get help and forms ........................................................ This page You can download forms and find other
information on our website at:
Changes for 2022 ................................................................................... 1
www.tax.nd.gov
General instructions ................................................................................2
Email
Who must file .....................................................................................2
Individual, estate, trust, partnership,
When and where to file ........................................................................ 2 and S corporation income tax—
Extension of time to file ....................................................................... 2 individualtax@nd.gov
Penalty and interest ............................................................................ 3
Estimated tax payment (for 2023) ........................................................ 3 Call
Withholding from nonresident shareholders ............................................ 3 Individual income tax—
Composite filing ..................................................................................3 Questions 701-328-1247
Correcting a previously filed return ........................................................ 4 Forms 701-328-1243
Reporting federal changes .................................................................... 4 S Corporation income tax—
W-2/1099 reporting requirement .......................................................... 4 Questions 701-328-1258
Forms 701-328-1243
Disclosure notification ......................................................................... 4
Use of information .............................................................................. 4 Speech/hearing impaired
TDD 800-366-6888
General instructions for completing Form 60 .............................................. 4
Specific line instructions ..........................................................................5 Write
Form 60, Page 1, Items A-H .................................................................5 Office of State Tax Commissioner
Schedule FACT ...................................................................................6 600 E. Boulevard Ave., Dept. 127
Bismarck, ND 58505-0599
Schedule BG ...................................................................................... 7
Schedule K ........................................................................................7 Walk-in or appointment
Schedule KS ..................................................................................... 10 service
Form 60, Page 1, Lines 1-13 ............................................................... 11 State Capitol Building, 8th Floor
Schedule K-1 .................................................................................... 12 600 E. Boulevard Ave., Bismarck, ND
Before you file Form 60 ..................................................................... 15 Monday through Friday
8:00 a.m. to 5:00 p.m.
(except holidays)
Required forms
The following forms are needed to complete Form 60: Walk-ins are welcome. To assure
Form 60 S corporation return availability and promptness of
Schedule FACT Calculation of North Dakota apportionment factor service, call in advance to make an
Schedule BG Tax on excess net passive income and built-in gains appointment.
Schedule K Total North Dakota adjustments, credits, and other
items distributable to shareholders
Schedule KS Shareholder information
Schedule K-1 Shareholder’s share of North Dakota income (loss),
deductions, adjustments, credits, and other items
The following forms may be needed:
Form 60-PV S corporation return payment voucher Privacy Act Notification
Form 60-EXT S corporation extension payment voucher In compliance with the Privacy Act of
Form 101 Application for extension of time to file a North Dakota 1974, disclosure of a Federal Employer
income tax return Identification Number (FEIN) or social
Form PWA Passthrough entity withholding adjustment security number on this form is required
under N.D.C.C.
Form PWE Nonresident passthrough entity member exemption and §§ 57-01-15 and 57-38-32, and will be
certification used for tax reporting, identification, and
Download these forms from our website at www.tax.nd.gov. administration of North Dakota tax laws.
Disclosure is mandatory. Failure to provide
the FEIN or social security number may
delay or prevent the processing of this form.
Taxpayer Bill of Rights
Obtain a copy of the North Dakota Taxpayer Bill of Rights on the
Office of State Tax Commissioner’s website at
www.tax.nd.gov
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Changes affecting S corporations
Developments, updates, and items of interest relating to S corporation income tax
REMINDER: Form 60 efiling For questions and assistance, contact Eligibility for the credit was
requirement the Office of State Tax Commissioner extended to all taxpayers (not just
House Bill 1082 passed by the 2021 by sending an email to C corporations), the credit rate was
North Dakota Legislature requires a withhold@nd.gov or calling increased from 5% to 25%, and
partnership, S corporation, trust, or 701-328-1248. the wages on which the credit is
other passthrough entity with 10 or allowed was changed from the first
more owners (or beneficiaries, if a REMINDER: Changes to $6,000 paid in the first 12 months of
trust) to file its North Dakota income employer withholding return employment to the first $6,000 paid
tax return and pay any tax due on and payment requirements annually. The 2019 changes were
effective only for the 2019 and 2020
it by electronic means. This new House Bill 1082 passed by the 2021
tax years.
requirement applies to returns filed North Dakota Legislature made the
for tax years 2022 and after. For following changes affecting the income
House Bill 1405 passed by the 2021
more information about electronic tax withholding return and payment
North Dakota Legislature reinstated
filing of the North Dakota partnership requirements for employers:
return (Form 58), S corporation the 2019 changes for two additional
return (Form 60), or fiduciary return • Effective for calendar years 2022 tax years—2021 and 2022—after
(Form 38), go to www.tax.nd.gov and after, an employer may file which the changes will expire, and the
and click on I Am ...>Business>E-File. Form 306, Income Tax Withholding law will revert to how it read prior to
Return, on an annual basis instead 2019.
of quarterly if the amount of North
REMINDER: Change to efiling To qualify for the credit, an employer
Dakota income tax withheld in
requirement for W-2s and the previous calendar year was must apply for and obtain from the
1099s less than $1,000. This is a $500 North Dakota Department of Human
Beginning with returns that are due increase in the threshold applicable Services, Vocational Rehabilitation
on January 31, 2023, businesses to calendar years before 2022. Division, a letter certifying that the
are required to electronically file individual has a severe developmental
Forms W-2 and 1099. • Effective for calendar years 2022 or mental disability, is eligible for
and after, Form 306, Income the agency’s services, and requires
Electronically filing these forms can Tax Withholding Return, and the customized or supported employment
easily be done in one of the following tax due on it must be submitted to become employed. See Form 60,
ways: electronically on a quarterly basis Schedule K, line 19.
if the amount of North Dakota
• North Dakota Taxpayer Access income tax withheld in the
Staying on top of
Point (ND TAP) at previous calendar year was $1,000
www.tax.nd.gov/tap or more. developments
If you do not already have a ND Businesses or other interested
TAP account, select “Sign Up For For questions and assistance, contact persons may sign up to receive
Access”. the Office of State Tax Commissioner email notifications when a newsletter
by sending an email to or other important information
• Third-party accounting withhold@nd.gov or calling is issued by the Office of State
software 701-328-1248. Tax Commissioner. There is a
A business should check its separate update list for each tax
accounting software or contact the REMINDER: 2-year extension type administered by the Tax
accounting software provider to of 2019 changes to disabled Commissioner. To sign up, go to
see if it provides electronic filing employment credit www.tax.nd.gov and select “Email
of Forms W-2 and 1099 with North Sign-Up” under “News Center”.
Dakota. In 2019, the North Dakota Legislature
expanded the income tax credit for
hiring a qualifying developmentally
disabled or mentally ill individual.
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Form 60 Instructions 2022
North Dakota S Corporation Income Tax Return
“N.D.C.C.” references are to the North Dakota Century Code, which contains North Dakota’s statutes.
“N.D. Admin. Code” references are to the North Dakota Administrative Code, which contains North Dakota’s rules.
Disaster recovery tax exemptions. Federal extension. If an extension
General Exemptions from state and local tax of time to file the federal corporation
instructions filing and payment obligations are return is obtained, it is automatically
available to out-of-state businesses accepted as an extension of time to
and their employees who are in file Form 60. If this applies, a separate
Who must file North Dakota on a temporary basis North Dakota extension does not have
A 2022 Form 60, S Corporation for the sole purpose of repairing to be applied for, nor does the Office
Income Tax Return, must be filed by or replacing natural gas, electrical, of State Tax Commissioner have to be
a corporation that meets both of the or telecommunication transmission notified that a federal extension has
following: property that is damaged, or under been obtained prior to filing Form 60.
threat of damage, from a state- or The extended due date for North
• It is required to file a 2022 presidentially-declared disaster or Dakota purposes is the same as the
Form 1120-S, U.S. Income Tax emergency. For more information, go federal extended due date.
Return for an S Corporation. to www.tax.nd.gov.
• It carries on business, or derives North Dakota extension. If a
gross income from sources, in Electronic Filing federal extension is not obtained, but
North Dakota during the 2022 tax S-corporations with 10 or more additional time is needed to complete
year. owners are required to file the North and file Form 60, a separate North
Dakota income tax return and pay any Dakota extension may be applied
Exception for certain tax due on it by electronic means. for by filing Form 101, Application
S corporations. An S corporation for Extension of Time to File a North
must file a 2022 Form 40, North Dakota Tax Return. This is not an
When and Where to file
Dakota Corporation Income Tax The 2022 Form 60 must be filed on automatic extension—there must
Return, for the 2022 tax year if all of or before (1) April 15, 2023, if filing be good cause to request a North
the following apply: for the 2021 calendar year, or (2) the Dakota extension. Form 101 must be
• The corporation is a bank or other 15th day of the 4th month following postmarked on or before the due date
financial institution that formerly the end of the tax year, if filing for of Form 60. Notification of whether
was subject to the North Dakota a fiscal year beginning in the 2022 the extension is accepted or rejected
financial institution tax under calendar year. If the due date falls will be provided by the Office of State
N.D.C.C. Ch. 57-35.3 and filed on a Saturday, Sunday, or holiday, Tax Commissioner.
Form 35 for tax years prior to the return may be filed on or before
2013. the next day that is not a Saturday, Extension interest. If Form 60 is
• The corporation made an election Sunday, or holiday. filed on or before the extended due
date, and the total amount of tax due
under N.D.C.C. § 57-38-01.35 to Note: Use the 2021 Form 60 if is paid with the return, no penalty will
be taxed as a C corporation for filing for a fiscal year beginning in be charged. Interest on the tax due
the 2013 tax year and filed a 2013 the 2021 calendar year. will be charged at the rate of 12% per
Form 40. year from the original due date of the
If not required to file
return to the earlier of the date the
• The corporation’s North Dakota net electronically, mail Form 60 and all
return is filed or the extended due
tax liability on the 2021 Form 40 required attachments to:
(page 1, line 20) is zero and the date.
corporation is not revoking the Office of State Tax Commissioner
election for 2022, which is done 600 East Boulevard Ave., Dept. 127 Prepayment of tax due. If an
by filing Form 60 for the 2022 tax Bismarck, ND 58505-0599 extension of time to file Form 60 is
year. obtained, any tax expected to be due
Extension of time to file may be paid on or before the regular
See the instructions to Form 40 for An extension of time to file Form 60 due date to avoid paying extension
more information. may be obtained in one of the interest. For more information,
following ways: including payment options, obtain the
Nonfiler penalty. If an S corporation 2022 Form 60-EXT.
does not file Form 60 as required, • Obtain a federal extension.
a minimum $500 penalty may be • Separately apply for a North
assessed if the failure continues after Dakota extension.
receiving a thirty-day notice to file
from the North Dakota Office of State
Tax Commissioner.
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Alternatively, a check or money Nonresident shareholder. For pays the tax with Form 60. The
order may be sent with a letter purposes of this withholding tax is calculated at the highest
containing the following: (1) name of requirement, a nonresident individual income tax rate (which is
corporation, (2) corporation’s FEIN, shareholder means: 2.90% for the 2022 tax year), and
(3) corporation’s address and phone no adjustments, deductions, or tax
• an individual who is not domiciled
number, and (4) statement that the credits are allowed in calculating the
in North Dakota, or
payment is a 2022 Form 60-EXT tax. A composite filing satisfies the
payment. • a trust, including a grantor trust, North Dakota income tax filing and
that is not organized under North payment obligations of the eligible
Penalty and interest Dakota law. This only includes nonresident shareholders included in
If an extension of time to file the trusts that are subject to income it, which means they do not have to
return was obtained, the tax due may tax. separately file their own North Dakota
be paid by the extended due date income tax returns. The composite
of the return without penalty, but Exception from withholding. No filing method is optional and does
extension interest will apply at the withholding is required if any of the not require prior approval from the
rate of 12% per year—see “Extension following apply: Office of State Tax Commissioner, and
interest” and “Prepayment of tax due” • The distributive share of North a choice to use it may be made on a
on this page. Dakota income is less than $1,000. year-to-year basis.
If Form 60 is filed by its due date (or • The nonresident shareholder elects Eligible nonresident shareholder.
extended due date), but the total to include the distributive share in For this purpose, a nonresident
amount of tax due is not paid by the a composite filing—see “Composite shareholder has the same meaning
due date (or extended due date), a filing” on this page. as that used for withholding income
penalty equal to 5% of the unpaid tax • The nonresident shareholder is a tax from nonresident shareholders—
or $5.00, whichever is greater, must trust and elects exemption from see “Withholding from nonresident
be paid. withholding on its distributive shareholders” on this page. A
If Form 60 is filed after its due date share of North Dakota income. nonresident shareholder is eligible
(or extended due date), and there For more information, obtain to be included in a composite filing if
is an unpaid tax due on it, a penalty Form PWE. both of the following apply:
equal to 5% of the unpaid tax due or • The nonresident shareholder’s
$5.00, whichever is greater, for the Withholding procedure. This
month in which the return was due withholding requirement applies to only source of income within North
plus 5% of the unpaid tax due for a nonresident shareholder’s year- Dakota is one or more passthrough
each additional month (or fraction end distributive share of North entities. A passthrough entity
of a month) during which the return Dakota income, which is determined includes a trust, partnership,
remains delinquent must be paid. This at the end of the S corporation’s S corporation, limited liability
penalty may not exceed 25% of the tax year and reported on Form 60, company treated like a partnership
tax due. Schedule KS, Column 6. The or S corporation, and any other
requirement does not apply to actual similar entity.
In addition to any penalty, interest distributions made to a nonresident • The nonresident shareholder elects
must be paid at the rate of 1% per shareholder during the tax year. The to be included in a composite
month or fraction of a month, except withholding amount is calculated and filing. An election is indicated by
for the month in which the tax was reported on Schedule KS, Column 7. the S corporation’s calculation
due, on any tax due that remains If a nonresident shareholder meets and reporting of a tax amount for
unpaid after the return’s due date (or certain conditions, an amount less the nonresident shareholder on
extended due date). than the amount calculated at the Form 60, Schedule KS, Column 8.
2.90% tax rate may be withheld. (If the distributive share is a loss,
Estimated tax payment For the qualifying conditions, see the tax is zero.)
(for 2023) Form PWA. An S corporation must
The distributive share of North Dakota
An S corporation may, but is not submit a payment for the the total
income included in a composite return
required to, make estimated income amount of withholding reported on
is subject to tax even if it is under
tax payments. For more information, Schedule KS, Column 7, with Form 60
$1,000.
including payment options, obtain the when it is filed.
2023 Form 60-ES. Composite filing method
Composite filing procedure. The tax under the
Withholding from A composite filing method is available composite filing method
to an S corporation with one or more
nonresident shareholders is calculated and reported on
eligible nonresident shareholders.
An S corporation must withhold North Form 60, Schedule KS, Column 8.
Under this method, an S corporation
Dakota income tax at the rate of An S corporation must submit a
calculates the North Dakota income
2.90% from the year-end distributive payment for the total tax reported on
tax on an eligible nonresident
share of North Dakota income of a Schedule KS, Column 8, with Form 60
shareholder’s year-end distributive
nonresident shareholder. when it is filed.
share of North Dakota income and
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Correcting a previously filed 7. Attach a statement explaining the under state law so the Office of State
return reason(s) for filing the amended Tax Commissioner can determine the
If a corporation needs to correct an return. If it is because of changes shareholder’s correct North Dakota
error on Form 60 after it is filed, the the corporation or the IRS made taxable income and verify if the
corporation must file an amended to the corporation’s 2022 Federal shareholder has filed a return and
return. There is no special form for Form 1120-S, attach a copy of paid the tax.
this purpose. See “How to prepare an the amended federal return or
amended 2022 return” below. IRS notice.
8. Complete and provide a corrected General
Note: If required to electronically North Dakota Schedule K-1 instructions for
file the original return, the amended (Form 60) to the shareholders, as
return must also be electronically required. completing
filed.
Form 60
If a corporation paid too much tax Reporting federal changes
because of an error on its 2022 If the Internal Revenue Service Complete Form 60 as
Form 60, the corporation generally (IRS) changes or audits the federal follows:
has three years from the due date of corporation return, or if a corporation
the return (excluding extensions) or files an amended federal corporation 1. Complete Federal Form 1120-S in
the date the return was actually filed, return, an amended North Dakota its entirety.
whichever is later, in which to file an Form 60 must be filed within ninety 2. Complete Items A through H at
amended return to claim a refund days after the final determination of the top of page 1 of Form 60—see
of the overpayment. See N.D.C.C. the IRS changes or the filing of the page 5.
§ 57-38-40 for other time periods that amended federal return. Enclose a 3. Complete Schedule FACT on
may apply. copy of the IRS audit report or the page 2 of Form 60—see page 6.
amended federal corporation return
4. Complete Schedule BG, if
How to prepare an amended 2022 with the amended North Dakota
required, on page 2 of Form 60—
return Form 60.
see page 7.
1. Obtain a blank 2022 Form 60.
5. Complete Schedule K on page 3
2. Enter the corporation’s name, W-2/1099 reporting
of Form 60—see page 7.
current address, FEIN, etc., in the requirement
top portion of page 1 of Form 60. Every corporation doing business in 6. Complete Schedule KS on page 5
3. Fill in the “Amended return” circle North Dakota that is required to file of Form 60—see page 10.
at the top of page 1 of Form 60. Federal Form 1099 or W-2 must also 7. Complete lines 1 through 13 on
file one with the Office of State Tax page 1 of Form 60—see page 11.
4. Complete Schedules FACT, BG, Commissioner. For more information, 8. Complete Schedule K-1, if
K, and KS using the corrected obtain the guideline Income Tax required, for the shareholders—
information. However, unless Withholding and see “Annual Filing see page 12.
there is an increase in the Requirements — W-2 and 1099.”
amount reported on Schedule KS,
Column 6, of the amended Rounding of numbers. Numbers
return, enter on Schedule KS, Disclosure notification may be entered on the return in
Upon written request from the
Column 7, the same amount dollars and cents, or they may be
chairman of a North Dakota legislative
reported on the previously filed rounded to the nearest whole dollar. If
standing committee or Legislative
return. Then complete lines 1 rounding, drop the cents if less than
Management, the law requires the
through 4 on page 1 of Form 60. 50 cents and round up to the next
Office of State Tax Commissioner to whole dollar amount if 50 cents or
5. On line 6 of page 1 of Form 60, disclose the amount of any deduction higher. For example, $25.36 becomes
enter the total taxes due from the or credit claimed on a tax return. Any $25.00, and $25.50 becomes $26.00.
previously filed 2022 Form 60, other confidential information, such as
page 1, line 4. a taxpayer’s name or federal employer Fiscal year filers. The tax year for
6. Complete line 8 (overpayment) identification number, may not be North Dakota income tax purposes
or line 11 (tax due), whichever disclosed. must be the same as the tax
applies. If there is an year used for federal income tax
overpayment on line 8, enter the Use of information purposes. Use the 2022 Form 60 if
full amount on line 10 (refund). All of the information on Form 60 and the corporation’s taxable year began
On an amended return, the its attachments is confidential by law in the 2022 calendar year. Note: Use
amount credited to the next and cannot be given to others except the 2021 Form 60 if the taxable year
year’s estimated tax (line 9) may as provided by state law. Information began in the 2021 calendar year.
not be increased or decreased. about the shareholders is required
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Item E - Date incorporated Amended return. Fill in if this return
Specific line Enter the date the business is being filed to correct a previously
instructions for incorporated from page 1 of Federal filed 2022 Form 60. See “Correcting a
Form 1120-S. previously filed return” on page 3 for
page 1 of Form 60, more information.
Item F - Indicators
Items A-H Fill in all applicable circles, as follows: Extension. Fill in if a federal or
state extension of time to file the
Complete Items A Initial return. Fill in if this is the first return was obtained. See “Extension
through H at the top of return filed in North Dakota by the of time to file” on page 2 for more
page 1 of Form 60. Then corporation. information.
complete Schedule FACT, Final return. Fill in if this is the last
Item G - Number of shareholders
Schedule BG, Schedule K, return to be filed in North Dakota by
Enter the total number of
and Schedule KS before the S corporation.
shareholders. Also enter the number
completing lines 1 through Farming/ranching corporation. Fill of each type of shareholder. For
13 on page 1 of Form 60. in if the corporation is registered as a “Trust/estate shareholders,” only
farming or ranching corporation with include trusts that are not tax-exempt
Item A - Tax year the North Dakota Secretary of State. organizations for federal income tax
The same tax year used for federal purposes.
income tax purposes (as indicated on Composite return. Fill in this circle
the federal corporation return) must only if (1) the corporation has one or
Item H - Qualified subchapter S
be used for North Dakota income more nonresident shareholders eligible
subsidiary
tax purposes. Fill in the applicable to be included in a composite filing
Indicate whether the corporation is
circle. If the corporation uses a fiscal and (2) all of them elected to include
a parent of one or more qualified
year, enter the beginning and ending their distributive shares of North
subchapter S subsidiaries. Attach
dates of the fiscal year. Use the 2022 Dakota source income in a composite
a statement to Form 60 listing
Form 60 only if the corporation’s tax filing. See “Composite filing” on
the name and federal employer
year began in the 2022 calendar year. page 3 for more information.
identification number of each qualified
subchapter S subsidiary.
Item B - Name and address
Enter the legal name of the
corporation on the first line of the
name and address area. If the Worksheet for Schedule BG, Line 6
corporation publicly operates under North Dakota net operating loss deduction
a fictitious or assumed name (which,
in most states, must be recorded or 1. Net recognized built-in gain from Form 60,
Schedule BG, line 2 ............................................................ 1 _________________
registered with the state), enter that
name on the second line of the name 2. Apportionment factor from Schedule BG, line 4 ...................... 2 __.__ __ __ __ __ __
and address area. If filing an amended 3. North Dakota apportioned built-in gain.
return, enter the most current Multiply line 1 by line 2 ....................................................... 3 _________________
address. 4. Accumulated North Dakota net
operating loss as of the end of the
Item C - Federal EIN last tax year as a C corporation.
North Dakota uses the federal Enter as a positive number .................. 4_________________
employer identification number (FEIN 5. Portion of line 4 that was previously
or federal EIN) for identification deducted for North Dakota income tax
purposes. Enter the federal employer purposes by the corporation.
identification number from page 1 of Enter as a positive number .................. 5_________________
Federal Form 1120-S. 6. Remaining North Dakota net operating loss.
Subtract line 5 from line 4. If less than zero, enter -0- ............ 6 _________________
Item D - Business code number
7. North Dakota net operating loss deduction. Enter smaller of
Enter the business code from the line 3 or line 6. Enter result on Schedule BG, line 6 ................. 7 _________________
NAICS code list found on the Office
of State Tax Commissioner’s website
at www.nd.gov/tax. Enter the
code that most closely describes the 2022 Corporation Tax Rate Schedule
industry from which the corporation If the amount on
derives the majority of its income. Schedule BG, line 7 is: The tax is equal to:
Over But not over
$ 0 $ 25,000 ...................................... 1.41% of the amount on line 7
25,000 50,000 ......$ 352.50 + 3.55% of the amount over $ 25,000
50,000 ................................1,240.00 + 4.31% of the amount over 50,000
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income—see the instructions to and other payroll deductions. Do not
Instructions for Form 60, Schedule K, line 21, for what include amounts paid for employee
Schedule FACT constitutes allocable nonbusiness benefit plans that are not considered
(Form 60, page 2) income. taxable wages to the employee. An
employee is an individual treated as
If the amount of any factor’s
an employee under the usual common
General instructions denominator is zero, exclude that
law rules, which generally mirror an
All corporations must complete the factor from the calculation.
individual’s status for purposes of
applicable portions of Schedule FACT Special apportionment rules unemployment compensation and the
as follows: may apply in the case of certain Federal Insurance Contribution Act.
• 100% North Dakota industries or unique circumstances.
Compensation of an employee’s
corporation For additional information on the
services performed entirely within
If the corporation conducted all apportionment factor, see N.D.C.C.
North Dakota is assigned to North
of its trade or business within Ch. 57-38.1 and N.D. Admin. Code
Dakota. For an employee whose
North Dakota during the tax Ch. 81-03-09.
services are performed in more than
year, skip lines 1 through 13 and one state, compensation is generally
enter “1.000000” on line 14 of Specific line instructions assigned to North Dakota based on
Schedule FACT. the amount of compensation reported
• Multistate corporation Property Factor to North Dakota for unemployment
If the corporation conducted its Lines 1 through 6 compensation purposes. Whether
trade or business both within Owned and rented property or not state income tax was
and without North Dakota during Enter on the applicable line the withheld from an employee’s
the tax year, complete lines 1 average value of real and tangible compensation does not affect where
through 14 of Schedule FACT. personal property owned and rented the compensation is assigned for
However, if all of the shareholders by the corporation. For owned apportionment factor purposes.
consist of only North Dakota property, this generally means the Include on this line in the applicable
resident individuals, estates, and average of the original cost (before column the corporation’s share of the
trusts, and the corporation is not depreciation) used for federal income payroll factor from a North Dakota
required to complete Schedule BG, tax purposes. For rented property, Schedule K-1 (Form 58), Part 6. For
skip lines 1 through 13, and this generally means the amount of more complete information on the
enter “1.000000” on line 14 of rent paid multiplied by eight. Certain payroll factor, see N.D. Admin. Code
Schedule FACT. property items are subject to special §§ 81-03-09-22 through 81-03-09-25.
rules. Do not include amounts related
Apportionment factor in to construction in progress. Include on Sales Factor
general line 5 the corporation’s share of the Line 9
In general, the apportionment factor property factor from a North Dakota Everywhere sales
is a product of a formula consisting Schedule K-1 (Form 58), Part 6. Enter the corporation’s total
of an equally-weighted average of sales or receipts, less returns or
three factors: property, payroll, and The average value of owned and
sales. Each factor represents the rented property is assigned to North allowances, for the tax year. Sales
percentage of the corporation’s North Dakota if the property is located generally means all gross receipts
Dakota activity compared to its total in North Dakota. The amount of a corporation. However, the types
activity everywhere. A corporation attributable to mobile property is of sales or gross receipts included
multiplies its business income by the generally assignable to North Dakota in the sales factor depend on the
apportionment factor to determine based on a ratio of the property’s nature of the corporation’s regular
the portion of its business income time spent in North Dakota. For more business activities and may include
attributable to North Dakota. complete information on the property amounts other than sales reported
factor, see N.D. Admin. Code on Form 1120-S, line 1. Include on
If the corporation includes the §§ 81-03-09-15 through 81-03-09-21 this line the corporation’s share of the
distributable share of income from and 81-03-09-33. everywhere sales from a North Dakota
a partnership in its apportionable Schedule K-1 (Form 58), Part 6.
business income, include in the Payroll Factor
numerator and denominator of each Line 10
factor the corporation’s proportionate Line 8 North Dakota sales
share of the partnership’s Enter the amount of total For sales of tangible property, the
apportionment factors—see the compensation paid to employees sale is assigned to North Dakota if the
specific line instructions for more for the tax year. This includes gross destination of the property is in North
information. Do not include in the wages, salaries, commissions, and Dakota, regardless of the shipping
factors any property, payroll, or sales any other form of remuneration paid terms. For sales of other than tangible
related to allocable nonbusiness to the employees. Use the amount property, the sale is assigned to
before deductions for deferred North Dakota if the income-producing
compensation, flexible spending plans, activity which gave rise to the
receipt is performed in North Dakota.
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Include on this line the corporation’s from the apportioned built-in gain Line 1
share of the North Dakota sales subject to North Dakota tax. Complete Interest from U.S. obligations
from a North Dakota Schedule K-1 the Worksheet for Schedule BG, Enter on this line interest income from
(Form 58), Part 6. For more complete Line 6 on page 5 to calculate the U.S. obligations and from securities
information, see N.D. Admin. Code amount to enter on this line. Attach a the interest of which is specifically
§§ 81-03-09-26 through 81-03-09-31 copy of the worksheet to Form 60. exempted from state income tax by
and 81-03-09-34. federal statute. Include the portion of
dividend income from a mutual fund
Line 11 Instructions for attributable to the fund’s investment
Throwback sales in the same kinds of securities.
Enter the amount of sales shipped Schedule K
Do not enter on this line interest
from a location in North Dakota that (Form 60, page 3)
income from securities of the Federal
are delivered to the U.S. government All corporations must complete
Home Loan Mortgage Corporation
or to another state or country Schedule K. The purpose of this
(Freddie Mac), Federal National
where the sales are not subject to schedule is to show the total amount
Mortgage Association (Fannie Mae),
a tax measured by income in that of North Dakota adjustments, credits,
or Government National Mortgage
jurisdiction. For more complete and other items distributable to its
Association (Ginnie Mae), nor from
information, see N.D. Admin. Code shareholders. These items may be
a federal income tax refund or
§§ 81-03-09-29 and 81-03-09-30. applicable to the preparation of the
repurchase agreement. Attach a
shareholders’ North Dakota income
statement identifying the specific
Line 14 tax returns.
securities from which the interest
Apportionment factor
Divide line 13 by the number of Schedule K-1 from another was derived.
factors having an amount greater than passthrough entity. Include on
zero in column 1 on lines 7, 8, and 12. the applicable lines of Schedule K Line 2
Enter the result on this line. any adjustments, credits, etc., from Renaissance zone exemption
a North Dakota Schedule K-1, as Enter on this line the amount from
instructed in the partner or beneficiary Schedule RZ, Part 7, line 1c. Attach
instructions to that form. Schedule RZ.
Instructions for
Reminder: Be sure to attach to Line 3
Schedule BG Form 60 any prescribed schedule New or expanding business
(Form 60, page 2) or other supporting document income exemption
An S corporation that is subject to specified in the instructions. If the corporation qualified for the
the federal income tax on excess net new or expanding business income
passive income or built-in gains is Property tax clearance exemption under N.D.C.C.
subject to North Dakota income tax on North Dakota Century Code Ch. 40-57.1, enter the exempt portion
the same income and must complete § 57-01-15.1 provides that, before of the corporation’s trade or business
Schedule BG. certain state tax incentives may be income. See N.D. Admin. Code
claimed, a taxpayer must obtain a § 81-03-01.1-06 for guidance on
Line 4 property tax clearance record from calculating the amount of the exempt
Apportionment factor each North Dakota county in which income. Attach a statement
If the corporation conducts its the taxpayer holds a 50 percent showing the calculation of the
trade or business both within and or more ownership interest in real exempt income.
without North Dakota during the property. The property tax clearance
tax year (multistate corporation), it record(s) must be attached to the Line 4a
must complete lines 1 through 14 North Dakota tax return on which Renaissance zone historic
of Schedule FACT to calculate an the incentive is claimed. Certain tax property preservation tax credit
apportionment factor to enter on incentives on Form 60, Schedule K, Enter on this line the amount from
Schedule BG, line 4. are subject to this requirement. The Schedule RZ, Part 7, line 4. Attach
incentives subject to this requirement Schedule RZ.
Line 6 are identified in the box at the top of
North Dakota NOL deduction Schedule K. Line 4b
If the corporation has always been Renaissance fund organization
an S corporation, enter zero on If the corporation is claiming any investment tax credit
this line. However, if a corporation of the specified incentives, it must Enter on this line the amount from
changed from a C corporation to an complete the property tax clearance Schedule RZ, Part 7, line 5. Attach
S corporation under an election first section at the top of Schedule K. If Schedule RZ.
made on or after January 1, 1987, it the corporation is required to attach a
may carry forward an unused North property tax clearance record, obtain
Dakota net operating loss incurred one by completing the form Property
while a C corporation and deduct it Tax Clearance Record, which is
available on the Office of State Tax
Commissioner’s website.
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8
Line 4c
Renaissance zone nonparticipating Worksheet for Schedule KS, Column 6
property owner tax credit For nonresident individual shareholders only—
Enter on this line the amount from see instructions to Schedule KS, Column 6.
Schedule RZ, Part 7, line 6. Attach 1. Shareholder’s amount from Column 5 ................................... 1 _________________
Schedule RZ. 2. Allocable income (less related expenses) included in the
amount on line 1 ................................................................ 2 _________________
Line 5
Seed capital investment tax credit 3. Interest from U.S. obligations included in the amount on line 1 3 _________________
If the corporation invested in a 4. Add lines 2 and 3 ............................................................... 4 _________________
qualified business for purposes of the 5. Apportionable income (loss). Subtract line 4 from line 1 .......... 5 _________________
seed capital investment tax credit,
multiply the total amount invested 6. Apportionment factor from Schedule FACT, line 14 .................. 6 __.__ __ __ __ __ __
during the 2022 tax year by 45% 7. Multiply line 5 by line 6 ....................................................... 7 _________________
and enter the result on this line. 8. Allocable income (less related expenses) reportable to
See N.D.C.C. Ch. 57-38.5. Attach a North Dakota ................................................................... 8 _________________
copy of the Qualified Seed Capital 9. Add lines 7 and 8. Enter result in Column 6............................ 9 _________________
Business Investment Reporting
form. Or, if claiming a seed capital
investment credit from a North
Dakota Schedule K-1, attach a or green diesel fuel from a terminal to 10% of the compensation paid to
statement identifying the qualified in North Dakota. Enter the credit on the intern. For details, see N.D.C.C.
business in which the investment this line. See N.D.C.C. § 57-38-01.22. § 57-38-01.24. The corporation is
was made. Attach a statement showing the allowed no more than $3,000 of
calculation of the credit. credits for all tax years.
Line 6 Line 9a. Enter the allowable credit on
Ag commodity investment tax Line 8
this line.
credit Biodiesel or green diesel fuel sales
If the corporation invested in a equipment tax credit Line 9b. Enter the number of eligible
qualified business for purposes of the If the corporation is a licensed seller interns employed during the 2022
agricultural commodity processing of biodiesel or green diesel fuel, it is tax year. Disregard this line if
facility investment tax credit, multiply allowed a credit equal to 10% of the the credit is from a passthrough
the total amount invested during the costs to adapt or add equipment to entity.
2022 tax year by 30% and enter the its North Dakota facility to enable it
result on this line. The corporation to sell diesel fuel having at least a Line 9c. Enter on this line the total
is allowed no more than $250,000 2% biodiesel or green diesel blend compensation paid to eligible interns
in total credits for investments (“B2”) that meets ASTM specifications. during the 2022 tax year (as shown
made in tax years 2005 and after. For this purpose, a “seller” means a on their 2022 Form W-2s). Disregard
See N.D.C.C. Ch. 57-38.6. Attach person who acquires the fuel from this line if the credit is from a
a copy of the Ag Commodity a wholesale supplier or distributor passthrough entity.
Processing Facility Investment for resale to a consumer at a retail
Reporting form. Or, if claiming an location. Except for costs incurred Line 10
agricultural commodity processing before January 1, 2005, include Research expense tax credit
facility investment credit from a eligible costs incurred before the tax A credit is allowed for conducting
North Dakota Schedule K-1, attach year in which sales of the eligible qualified research in North Dakota. For
a statement identifying the facility biodiesel or green diesel fuel begin. details, see N.D.C.C. § 57-38-30.5.
in which the investment was The credit is allowed in each of five Enter the allowable credit on this line.
made. tax years, starting with the tax year Attach a statement showing the
in which sales of the eligible biodiesel computation of the base amount
Line 7 or green diesel fuel begin. Enter the and the credit.
Biodiesel or green diesel fuel credit on this line. See N.D.C.C.
blending tax credit § 57-38-01.23. Attach a statement Line 11
If the corporation is a licensed showing the calculation of the Endowment fund tax credit
supplier of biodiesel or green diesel credit. A tax credit is allowed for making a
contribution to a qualified endowment
fuel, it is allowed a credit equal to fund. For more information,
five cents per gallon for blending Line 9
biodiesel or green diesel fuel having Employer internship program see Schedule QEC (for filers of
at least a 5% blend (“B5”) that meets credit Forms 38, 40, 58, and 60). Attach
ASTM specifications. The blending If the corporation hired an eligible Schedule QEC.
must be done in North Dakota. For college student under a qualifying Lines 11a and 11b. Enter on these
this purpose, a “supplier” means a internship program set up in North lines the applicable amounts from
person who distributes the biodiesel Dakota, it is allowed a credit equal Schedule QEC.
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9
Lines 11c and 11d. Enter on Election. A corporation may elect, on Line 14. Enter on this line the
these lines an endowment fund a contribution by contribution basis, allowable credit for contributions to
credit and the related contribution to treat a contribution as having been qualified nonprofit private primary
amount shown on a North Dakota made during the 2022 tax year if it schools.
Schedule K-1 received from an estate, is made on or before the due date,
trust, partnership, or S corporation. including extensions, for filing the Line 15. Enter on this line the
2022 Form 60. Make the election by allowable credit for contributions
Line 12 attaching to the return a document to qualified nonprofit private high
Workforce recruitment tax credit containing the following: schools.
If the corporation employs
extraordinary recruitment methods 1. A statement that the election is Line 16. Enter on this line the
to hire an employee to fill a hard- being made. allowable credit for contributions to
to-fill position in North Dakota, it is 2. Name of qualifying school. qualified nonprofit private colleges.
allowed a tax credit equal to 5% of 3. Date of contribution.
the compensation paid during the 4. Amount of contribution. Line 17
first 12 months to the employee Angel investor investment credit
hired to fill that position. The credit To qualify, a contribution must be
may be claimed in the first taxable made directly to, or specifically Important! This line is only for
year beginning after the employee designated for the exclusive use of, a credits attributable to investments
completes the first 12 consecutive qualifying school. made in qualified businesses
months of employment. For details, by angel funds organized and
see N.D.C.C. § 57-38-01.25. School network or organization. certified on or after July 1, 2017.
If a contribution is made payable If an S corporation is a member of
Line 12a. Enter the allowable credit to the account or fund of a school a North Dakota angel fund that is
on this line. network or organization that governs organized and certified on or after
Line 12b. Enter the number of eligible or benefits multiple schools, the July 1, 2017, a credit is allowed to
employees whose first 12 months contribution will qualify only if the the corporation if it participates in
of employment ended during the corporation specifically designates a qualified investment made by the
corporation’s 2021 tax year. it for the use of a qualifying school, angel fund in a qualified business.
and the network or organization The angel fund is required to provide
Line 12c. Enter the total separately accounts for the funds on a Participating Angel Investor
compensation paid to the eligible behalf of that school. The corporation Statement to the S corporation,
employees during their first 12 must obtain a statement from the which evidences the corporation’s
consecutive months of employment network or organization that identifies investment. For qualified investments
ending in the corporation’s 2021 tax the qualifying school and the amount made after June 30, 2017, that fall
year. contributed to it. If the qualifying into the S corporation’s 2022 tax year,
school falls into both the primary and multiply the investment amount by
Line 13 high school categories, also see the the applicable credit rate shown on
Credit for wages paid to a next paragraph. the statement. If an S corporation
mobilized employee
participates in more than one qualified
Enter on this line the amount from Schools in both primary and high investment during the tax year,
Schedule ME, line 13. See N.D.C.C. school categories. If a contribution calculate the credit separately for
§ 57-38-01.31. Attach Schedule ME. is made to a qualifying school that each Participating Angel Investor
provides education in one or more Statement received and add the
Lines 14 through 16 grades in both the primary school separately calculated amounts.
Nonprofit private school tax category (kindergarten through
credits 8th grades) and the high school Enter the credit amount on this
Tax credits are allowed for making category (9th through 12th grades), line. Do not enter on this line
charitable contributions to qualifying a separate credit is allowed for the an angel investor credit from a
nonprofit private primary schools, high portion of the contribution designated North Dakota Schedule K-1. See
schools, and colleges located in North for use within each school category. N.D.C.C. § 57-38-01.26 (effective
Dakota. A separate credit is allowed The corporation must obtain a for investments made after June 30,
for each of the three categories of statement from the qualifying school 2017).
school—primary school, high school, or the school network or organization
Attach a copy of the Participating
and college. For each category of that identifies the qualifying school
Angel Investor Investment
school, the credit equals 50% of the and shows the amount contributed
Statement.
contributions made to all eligible within each category of school. If
schools within the category. (Note: the corporation does not obtain a
Additional limitations on the allowable statement, one-half of the total
credit apply at the shareholder contribution will be deemed to have
level.) For a list of the eligible been made to each category of school.
schools within each of the three
categories of schools, see the
table on page 13 of this booklet.
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10
Line 18 businsess or nonbusiness income. Note: The corporation is required
Automation tax credit For more information, see N.D. to report this same information on
Admin. Code § 81-03-09-03. a separate statement attached to
Important! This line only applies
Federal Form 1120-S, Schedule K,
to the automation income tax Nonbusiness income is not
line 17d.
credit program in effect for the apportioned using the apportionment
2019 through 2022 tax years. factor (from Schedule FACT) but is For lines 21a through 21d, multiply
allocated within or without North the corresponding combined
If the corporation qualified for the
Dakota as provided under N.D.C.C. amount for all shareholders as
automation tax credit under N.D.C.C.
§§ 57-38.1-04 through 57-38.1-08 reported on Federal Form 1120-S,
§ 57-38-01.36, enter on this line the
and N.D. Admin. Code § 81-03-09-09. Schedule K, line 17d, by the North
amount of the credit shown on the
Expenses must be attributed to the Dakota apportionment factor
credit approval letter issued to the
nonbusiness income in a manner from Schedule FACT, line 14, and
corporation by the North Dakota Office
that fairly distributes all of the enter the result. However, if the
of State Tax Commissioner.
corporation’s expenses to its business property disposed of is treated as a
and nonbusiness income. nonbusiness asset the gain or loss
Line 19
from which is subject to allocation
Credit for hiring an individual If the corporation has an item of
under N.D.C.C. §§ 57-38.1-04 through
with a developmental disability or nonbusiness income subject to
57-38.1-08, subtract the amounts
mental illness allocation, the corporation must take
for that asset before multiplying by
A tax credit is available for employing this into account when calculating
the apportionment factor. Include the
an individual with a developmental the North Dakota distributive share
nonbusiness gain or loss from the
disability or mental illness. To of income or loss reportable on
disposition on Form 60, Schedule K,
qualify, an employer must apply for Schedule KS and Schedule K-1
line 20.
and obtain certification from the (Form 60). See the instructions to
North Dakota Department of Human Schedule KS, Column 6, for more
Services, Vocational Rehabilitation information. In addition to completing Instructions for
Division, that the individual has a lines 20a and 20b, the corporation
severe disability, is eligible for the must attach the following to Form 60: Schedule KS
agency’s services, and requires (Form 60, page 5)
• A statement on which each item
customized or supported employment Schedule KS must be completed
of nonbusiness income is shown
to become employed. The credit is to provide information about each
along with its related expenses.
equal to 25% of the wages paid to the shareholder. If the corporation has
individual during the tax year, up to a • A statement explaining the basis more than seven shareholders,
maximum credit of $1,500 per year. for treating the item of income complete and attach additional
The credit is allowed for each eligible as nonbusiness income subject to schedules as needed to list all
individual hired. Attach a copy allocation. shareholders. If more than one
of the certification letter from • If an item of nonbusiness income Schedule KS is needed, complete
Human Services. is allocated to a state other than lines 1 through 4 on only one of them,
North Dakota, a copy of that other and include the combined amount
Line 20 state’s income tax return must for all of the schedules on that one
Allocable nonbusiness income be attached. If the corporation is schedule.
Lines 20a and 20b apply only if the not required to file an income tax
corporation meets all of the following: return with the other state, the All Shareholders
corporation must indicate this in (Columns 1 through 5)
• It is a multistate corporation, i.e.,
the attached statement.
it carries on its business both Columns 1 and 2
within and without North Dakota. Line 20a. Enter the total allocable Enter the name, mailing address, and
• It has one or more nonresident income (less related expenses) from shareholder’s identifying number as
individual, estate, or trust all sources within and without North shown on the shareholder’s Federal
shareholders. Dakota. Schedule K-1. If the shareholder
is a single member limited liability
• It has allocable nonbusiness Line 20b. Enter the portion of the
company (LLC) that is a disregarded
income. Generally, all income amount on line 20a that is allocable to
entity for federal income tax purposes,
received by a corporation is North Dakota.
enter the owner’s name, address, and
considered business income unless
identifying number.
clearly classifiable as nonbusiness Line 21
income. The classification of Disposition of I.R.C. Section 179
Column 3
income by the labels used to property
Identify the entity type of the
describe it—for example, interest, Lines 21a through 21d apply only if
shareholder by entering the applicable
dividends, rents, royalties, the corporation sold, exchanged, or
code letter as follows:
operating income, or nonoperating disposed of property for which an
income—is generally not relevant I.R.C. Section 179 deduction was
in determining whether income is passed through to the shareholders.
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11
Entity type Code letter Box 17 Include the gain (loss) from • If the nonresident shareholder
Individual ..................... I I.R.C. Section 179 property gives you a completed Form PWE,
Trust ............................ T disposition (For purposes leave Column 7 blank and fill in
of calculating the gain the circle under “Form PWA or
Decedent’s estate .......... D or loss, include all of the Form PWE.”
Bankruptcy estate ......... B Section 179 deduction • If the nonresident shareholder
Exempt organization ...... O passed through to the elected to be included in a
shareholder, regardless
If the shareholder is a limited liability composite filing, leave Column 7
of whether or not the
company (LLC) that is a disregarded blank and see the instructions to
shareholder actually
entity for federal income tax purposes, Column 8.
deducted all of it.)
enter the code letter for the type of See “Withholding from nonresident
entity of the LLC’s owner. shareholders” on page 3 for more
Nonresident Shareholders
information.
Note: The “Trust” entity type only Only
applies to a trust that files Federal (Columns 6 through 8) Column 8
Form 1041 or, in lieu of filing Federal
Form 1041, elects an alternative For purposes of Columns 6 through 8, Note: Leave Column 8 blank if
reporting method under the federal a nonresident shareholder means: Column 7 was completed for the
income tax regulations. nonresident shareholder.
• an individual who is not domiciled
in North Dakota, or
Column 4 Complete Column 8 for each
Enter the shareholder’s stock • a trust, including a grantor trust, nonresident shareholder electing to
ownership percentage as shown that is not organized under North be included in a composite filing.
on the shareholder’s Federal Dakota law. This only applies to Multiply the amount in Column 6 by
Schedule K-1. trusts that are subject to income 2.90% (.029) and enter the result in
tax. Column 8. If the amount in Column 6
Column 5 is zero or less, enter zero in Column 8.
Enter the sum of the following items Column 6 See “Composite filing” on page 3 for
from the shareholder’s Federal Complete Column 6 for each more information.
Schedule K-1 (Form 1120-S), Part III: nonresident shareholder. Multiply the
shareholder’s amount in Column 5
Box 1 Ordinary business income by the apportionment factor from Specific line
(loss) Schedule FACT, line 14, and enter the
instructions for
Box 2 Net rental real estate income result in Column 6. However, complete
(loss) the Worksheet for Schedule KS, page 1 of Form 60,
Box 3 Other net rental income Column 6 on page 8 to calculate the
(loss) amount to enter in Column 6 if either lines 1-13
or both of the following apply:
Box 4 Interest income Complete Schedule FACT,
Box 5a Ordinary dividends • The corporation has an item of Schedule BG, Schedule K, and
nonbusiness income subject to Schedule KS before completing
Box 6 Royalties allocation. See the instructions to lines 1 through 13 on page 1 of
Box 7 Net short-term capital gain Form 60, Schedule K, line 20, for Form 60.
(loss) more information.
Line 5
Box 8a Net long-term capital gain • The amount in Column 5 includes Income tax withholding
(loss) interest from U.S. obligations. Enter the North Dakota income
Box 9 Net section 1231 gain (loss) tax withholding shown on a 2022
Box 10 Other income (loss) Column 7 Form 1099 or North Dakota
If a nonresident shareholder’s Schedule K-1. Be sure the state
Box 11 Section 179 deduction distributive share of North Dakota identified on the Form 1099 is North
Box 12 Other deductions (Only income in Column 6 is $1,000 Dakota. Also enter the North Dakota
include the deductions or more, multiply the amount in income tax withholding shown on a
allowed as a deduction Column 6 by 2.90% (.029) and enter 2021 North Dakota Schedule K-1 if the
from gross income in the result in Column 7. However, the entity that issued it has a fiscal tax
calculating adjusted gross following exceptions apply: year ending in the corporation’s 2022
income for federal income tax year. Do not enter on this line
tax purposes.) • If the nonresident shareholder
gives you a completed Form PWA, North Dakota extraction or production
enter the amount from line 5 of taxes withheld from mineral interest
Form PWA in Column 7 and fill income, such as an oil or gas royalty,
in the circle under “Form PWA or because they are not income taxes.
Form PWE.” Attach a copy of the Form 1099 or
North Dakota Schedule K-1.
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12
Line 6 month the return remains unfiled,
Estimated tax payments not to exceed the greater of 25% Instructions for
Enter the amount paid with the of the unpaid tax due or $25.00. Schedule K-1
2022 Forms 60-EXT and 60-ES plus With the exception of the taxes on
Interest. Calculate the interest
any overpayment applied from the excess net passive income and built-
amount as follows:
2021 Form 60. However, if filing an in gains (calculated on Schedule BG),
amended return, do not enter any • If an extension of time to file an S corporation is not subject to
previously paid estimated tax amount; Form 60 was obtained, extension North Dakota income tax. Instead,
instead, enter the amount of the total interest is calculated at the rate of the shareholders are responsible for
taxes due from line 4 of the previously 12% per year on any tax due from reporting and paying any applicable
filed original or amended return. the due date of the return to the North Dakota income tax on their
earlier of the extended due date or shares of the corporation’s income
Line 9 the date the return was filed. reportable to North Dakota.
Application of overpayment to • If the total amount of tax due North Dakota Schedule K-1 (Form 60)
2023 is not paid by the due date (or must be used by an S corporation
If there is an overpayment on line 8, extended due date) of the return, to provide its shareholders with
the corporation may elect to apply interest is calculated at the rate information they will need to complete
part or all of it as an estimated of 1% per month or fraction of a a North Dakota income tax return.
payment toward its 2023 tax liability. month on the unpaid tax, except The information to be included in the
To make the election, enter the for the month in which the return schedule will depend on the type of
portion of line 8 to be applied on was due. shareholder. In the case of certain
line 9. If this election is made, the
credits reported on Schedule K-1
election and the amount applied may Line 13 (Form 60), additional supporting
not be changed after the return is Balance due information must be provided with
filed. If this is an amended return, do The balance due must be paid in full Schedule K-1—see the instructions to
not make an entry on this line. with the return. The payment may Part 3.
be made electronically in one of the
Line 11 following ways. North Dakota Schedule K-1 (Form 60)
Tax due must be completed and given to:
A tax due must be paid in full with • Online—A payment may be made
the return when it is filed. See the online with an electronic check or a • Each nonresident shareholder for
instructions to line 13 for payment debit or credit card. The electronic which the corporation is required
options. option is free. North Dakota to report the North Dakota
contracts with a national payment distributive share of income on
Line 12 service to provide the debit or Form 60, Schedule KS, Column 6.
Penalty and interest credit card option. There is a fee • Each shareholder to which a share
The Office of State Tax Commissioner for the debit or credit card option, of a North Dakota adjustment
will notify the corporation of any none of which goes to the State of or tax credit from Form 60,
penalty and interest payable on a tax North Dakota. To pay online, go to Schedule K, lines 1 through 19, is
due shown on Form 60. However, the www.tax.nd.gov/payment. distributable.
corporation may calculate the penalty • Electronic funds transfer—A • Each shareholder that is a qualified
and interest amounts and include payment may be made by means subchapter S trust (QSST)
them in the balance due on Form 60. of an Automated Clearing House or an electing small business
Penalty. Calculate the penalty (ACH) credit transaction that trust (ESBT) with a nonresident
amount as follows: the taxpayer initiates through individual or estate beneficiary.
its banking institution. For more
• If Form 60 is filed by the due date information, go to our website at If there are no North Dakota
(or extended due date), but the www.tax.nd.gov. adjustments or tax credits on
total amount of tax due is not paid Form 60, Schedule K, lines 1 through
with the return, the penalty is If paying with a paper check or money 19, a North Dakota Schedule K-1
equal to 5% of the unpaid tax or order, complete a 2022 Form 60-PV does not have to be given to a North
$5.00, whichever is greater. payment voucher and enclose it with Dakota resident individual, estate, or
the payment. Make the check or trust.
• If Form 60 is filed after its due money order payable to “ND State
date (or extended due date), and Tax Commissioner,” and write the last In addition to the North Dakota
there is an unpaid tax due on it, a four digits of the corporation’s FEIN Schedule K-1 (Form 60), the
penalty equal to 5% of the unpaid and “2022 Form 60” on the check or corporation must provide the
tax due (with a $5.00 minimum) money order. A check must be drawn shareholder with a copy of the
applies for the month the return on a U.S. or Canadian bank, be in U.S. Shareholder’s Instructions for
was due, plus 5% of the unpaid dollars, and use a standard 9-digit North Dakota Schedule K-1
tax due (with a $5.00 minimum) routing number. A check drawn on a (Form 60).
for each month or fraction of a foreign bank (except one in Canada)
cannot be accepted.
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13
A copy of all North Dakota
Schedule K-1 forms must be enclosed Qualified nonprofit private schools
with Form 60 along with any required The following lists identify the qualifying schools in each school category.
supplemental statements. (Note: These lists are subject to change.)
Amended schedule. If a corporation Primary Schools (Grades K through 8)
files an amended Form 60, the Anne Carlsen Center (Jamestown) Red River Adventist Primary School
corporation must issue amended Bishop Ryan Catholic School (Minot) (Fargo)
North Dakota Schedule K-1 forms to Brentwood Adventist Christian School School of the Holy Family (Mandan)
its shareholders. Fill in the “Amended” (Bismarck) Shanley High-Sullivan Middle School
circle at the top of the North Dakota Cathedral of the Holy Spirit Primary (Fargo)
Schedule K-1 (Form 60). School (Bismarck) SonShine Elementary (Minot)
Christ the King Catholic Montessori Shiloh Christian School (Bismarck)
Final schedule. Fill in the “Final” School (Mandan) St. Alphonsus Primary School
circle at the top of the North Dakota Dakota Memorial School (Minot) (Langdon)
Schedule K-1 if it is the last one to Dakota Montessori School (Fargo) St. Anne Primary School (Bismarck)
be issued by the corporation to the Forest River School (Fordville) St. Ann’s Catholic School (Belcourt)
shareholder. Grace Lutheran Primary School St. Bernard Mission School
(Fargo) (Fort Yates)
Hillcrest SDA School (Jamestown) St. Catherine Primary School
Part 2
Holy Family – St. Mary’s Primary (Valley City)
Shareholder information School (Grand Forks) St. John’s Academy (Jamestown)
Holy Spirit Primary School (Fargo) St. John’s Primary School (Wahpeton)
Item E Hope Christian Academy (Dickinson) St. Joseph Primary School (Mandan)
Enter the code letter for the Invitation Hill Adventist School St. Joseph Primary School
shareholder from Form 60, (Dickinson) (Devils Lake)
Schedule KS, Column 3. Johnson Corners Christian Academy St. Joseph’s Primary School (Williston)
(Watford City) St. Mary’s Academy (Bismarck)
Item F Little Flower Primary School (Rugby) St. Mary’s Primary School (Bismarck)
If the shareholder is an individual, Martin Luther School (Bismarck) St. Michael’s Primary School
estate, or trust, fill in the applicable Nativity Primary School (Fargo) (Grand Forks)
circle to indicate the legal residency New Testament Baptist Christian The Innovation School (Bismarck)
status of the shareholder for North School (Larimore) Trinity Primary East School
Dakota income tax purposes. If an Oak Grove Lutheran Primary School (Dickinson)
individual shareholder changed his or (Fargo) Trinity Primary North School
her legal residency to or from North Our Redeemer’s Christian School (Dickinson)
Dakota during the tax year, check (Minot) Trinity Primary School (West Fargo)
the part-year resident status. In the Prairie Learning Education Center Trinity Primary West School
case of an estate or trust shareholder, (Raleigh) (Dickinson)
only the full-year resident or full-year Prairie Voyager Adventist School Trinity Jr/High School (Dickinson)
nonresident status will apply. (Grand Forks) Victory Christian School (Jamestown)
Williston Trinity Christian School
Item G (Williston)
For an eligible nonresident High Schools (Grades 9 through 12)
shareholder, indicate whether the
Anne Carlsen Center (Jamestown) Our Redeemer’s Christian School
shareholder is included in a composite
Bishop Ryan Catholic School (Minot) (Minot)
filing by filling in the applicable circle. Dakota Adventist Academy Prairie Learning Education Center
(Bismarck) (Raleigh)
Part 3 Dakota Memorial School (Minot) School of the Holy Family (Mandan)
All shareholders— Hope Christian Academy (Dickinson) Shanley High-Sullivan Middle School
North Dakota adjustments Johnson Corners Christian Academy (Fargo)
and tax credits (Watford City) Shiloh Christian School (Bismarck)
If there are any North Dakota New Testament Baptist Christian St Mary’s Central High School
adjustments or tax credits on School (Larimore) (Bismarck)
Form 60, Schedule K, lines 1 Oak Grove Lutheran Middle/High Trinity Jr/High School (Dickinson)
through 19, complete this part for all School (Fargo) Williston Trinity Christian School
(Williston)
shareholders.
Colleges (Education above 12th grade)
Jamestown College (Jamestown) United Tribes Technical College
Trinity Bible College (Ellendale) (Bismarck)
Turtle Mountain Community College University of Mary (Bismarck)
(Belcourt) ND Independent College Fund
(Bismarck)
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14
Lines 1 through 19 For purposes of calculating the gain Part 5
Enter on the corresponding lines the or loss for I.R.C. § 179 property Nonresident shareholder
shareholder’s share of each amount dispositions included in box 17 of
shown on Form 60, Schedule K, Federal Schedule K-1, include all of only
Complete Part 5 for a nonresident
lines 1 through 19. Also, for the the Section 179 deduction passed
shareholder for which an amount was
following lines, additional supporting through to the shareholder, regardless
required to be entered on Form 60,
information must be provided with of whether or not the shareholder
Schedule KS, Column 6.
Schedule K-1: actually deducted all of it.
Lines 5 and 6. Provide a statement Exception 1: Allocable Line 34
identifying the qualified business (nonbusiness) income. If the ND distributive share of income
or qualified agricultural commodity corporation treated any part of a (loss)
processing facility in which the distributable item of income from the Enter the shareholder’s North
qualifying investment was made. shareholder’s Federal Schedule K-1 Dakota distributive share of income
as nonbusiness income subject to (loss) from Form 60, Schedule KS,
Line 11. Provide a statement Column 6.
allocation, calculate the amount to
identifying the qualified nonprofit
enter on the corresponding line of this
organization and the qualified Line 35
part in the following steps:
endowment fund to which the ND income tax withheld
qualifying contribution was made. 1. Subtract the net nonbusiness Enter the amount of North
income (gross amount less
Line 17. Provide a statement Dakota income tax withheld from
related expenses) from
identifying the angel fund that made the shareholder’s North Dakota
the applicable distributable
the qualified investment in the distributive share of income from
amount shown on the Federal
qualified business. Form 60, Schedule KS, Column 7.
Schedule K-1.
2. Multiply the remaining distributive
Part 4 Line 36
amount, if any, (from step 1) by ND composite income tax
Nonresident individual, the corporation’s apportionment Enter the amount of North
estate, or trust shareholder factor from Schedule FACT, Dakota composite income tax on
only—North Dakota income line 14. the shareholder’s North Dakota
(loss) 3. Add the result (from step 2) to distributive share of income from
Complete Part 4 for a nonresident the portion, if any, of the net Form 60, Schedule KS, Column 8.
individual, estate, or trust shareholder. nonbusiness income allocable
to North Dakota, and enter the
Line 20 result on the corresponding line Before you file
Corporation’s apportionment of Part 4. Form 60
factor
Enter the corporation’s apportionment Note: If any portion of the net Signatures
factor from Form 60, Schedule FACT, nonbusiness income removed from the The return must be signed and dated
line 14. distributable amount (in step 1 above) by a corporate officer or an authorized
is allocable outside North Dakota, do representative of the corporation.
Lines 21 through 33 not enter it anywhere on North Dakota
Income and loss items Schedule K-1 (Form 60). If the corporation pays someone other
than one of its employees to prepare
Except as provided under If the calculation of any amount on the return, the paid preparer also
Exception 1 and Exception 2 lines 21 through 33 of Part 4 was must sign and date the return.
below, multiply the corresponding affected by the removal or inclusion
amount from the shareholder’s of net nonbusiness income, attach Preparer authorization check-off
Federal Schedule K-1, Part III, a statement to the shareholder’s The corporation may authorize the
boxes 1 through 12, and any I.R.C. North Dakota Schedule K-1 (Form 60) North Dakota Office of State Tax
§ 179 property disposition gain identifying the net nonbusiness Commissioner (Tax Department) to
(loss) included in box 17 by the income and showing the calculation of discuss matters pertaining to its 2022
corporation’s apportionment factor the amount entered on the applicable Form 60 with the preparer who signed
from Schedule FACT, line 14, and line(s) of Part 4. it. To do so, fill in the circle next to
enter the result on the corresponding the signature area in the lower right-
line of Part 4, lines 21 through 33. Exception 2: Interest from U.S.
obligations. Do not include interest hand corner of page 1 of Form 60.
For “Other deductions” from box 12 from U.S. obligations in determining This authorization applies only to the
of Federal Schedule K-1, only include the amount to enter on Part 4, line 24. individual whose signature and printed
deductions that are allowed as a name appears in the paid preparer
deduction from gross income in section of the signature area. It does
calculating adjusted gross income for not apply to the firm, if any, shown
federal income tax purposes. in that section.
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15
This authorization allows the Tax This authorization automatically Assembling a paper return
Department to contact the preparer expires on the due date (including Please assemble Form 60 and its
to answer any questions that may extensions) for filing the 2023 required attachments in the following
arise during the processing of the Form 60. order:
corporation’s return. It also authorizes 1. Form 60.
This authorization does not authorize
the preparer to respond to questions
the preparer to receive a refund 2. Schedule FACT / Schedule BG.
and to provide any information
check, to bind the corporation in
missing from the return, to contact 3. Schedule K.
any way (including any additional
the Tax Department to inquire about 4. Schedule KS.
tax liability), or to represent
the status of the return’s processing 5. Schedule QEC.
the corporation before the Tax
and related refund or payment, and
Department for any other purpose.
to respond to Tax Department notices 6. All other required North Dakota
that the corporation shares with the schedules and forms (other
preparer pertaining to math errors or than North Dakota Schedule K-1
return preparation. (Tax Department forms).
notices will be sent only to the 7. North Dakota Schedule K-1
corporation.) forms.
8. Required supporting statements.
9. Complete copy of Form 1120-S
including Federal Schedule K-1
forms.
A balance due may be paid
electronically (see page 11 of these
instructions). If paying with a paper
check, enclose the check and a 2022
Form 60-PV payment voucher with the
return.
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