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North Dakota Free Printable S Corporation Income Tax Booklet 2023 for 2024 North Dakota Form 60 Booklet - S Corporation Income Tax

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Form 60 Booklet - S Corporation Income Tax
S Corporation Income Tax Booklet 2023

TAX.ND.GOV 2023 NORTH DAKOTA S CORPORATION INCOME TAX INCLUDES SCHEDULE FACT SCHEDULE BG SCHEDULE K SCHEDULE KS SCHEDULE K-1 Email Questions to: [email protected] 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 2023....................................................................................1 General instructions.................................................................................2 Who must file......................................................................................2 When and where to file.........................................................................2 Extension of time to file........................................................................2 Penalty and interest.............................................................................3 Estimated tax payment (for 2024).........................................................3 Withholding from nonresident shareholders.............................................3 Composite filing...................................................................................3 Correcting a previously filed return.........................................................4 Reporting federal changes.....................................................................4 W-2/1099 reporting requirement...........................................................4 Disclosure notification..........................................................................4 Use of information...............................................................................4 General instructions for completing Form 60...............................................4 Specific line instructions...........................................................................5 Form 60, Page 1, Items A-H..................................................................5 Schedule FACT....................................................................................6 Schedule BG.......................................................................................7 Schedule K.........................................................................................7 Schedule KS...................................................................................... 11 Form 60, Page 1, Lines 1-13................................................................ 12 Schedule K-1..................................................................................... 13 Before you file Form 60...................................................................... 15 Required forms The following forms are needed to complete Form 60: Form 60 S corporation return Schedule FACT Calculation of North Dakota apportionment factor Schedule BG Tax on excess net passive income and built-in gains 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 www.tax.nd.gov Email Individual, estate, trust, partnership, and S corporation income tax— [email protected] Call Individual income tax— Questions 701-328-1247 Forms 701-328-1243 S Corporation income tax— Questions 701-328-1258 Forms 701-328-1243 Speech/hearing impaired TDD 800-366-6888 Write Office of State Tax Commissioner 600 E. Boulevard Ave., Dept. 127 Bismarck, ND 58505-0599 Walk-in or appointment service State Capitol Building, 8th Floor 600 E. Boulevard Ave., Bismarck, ND Monday through Friday 8:00 a.m. to 5:00 p.m. (except holidays) Walk-ins are welcome. To assure availability and promptness of service, call in advance to make an appointment. The following forms may be needed: Form 60-PV Form 60-EXT Form 101 Form PWA Form PWE S corporation return payment voucher S corporation extension payment voucher Application for extension of time to file a North Dakota income tax return Passthrough entity withholding adjustment Nonresident passthrough entity member exemption and certification Download these forms from our website at www.tax.nd.gov. 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 Privacy Act Notification In compliance with the Privacy Act of 1974, disclosure of a Federal Employer Identification Number (FEIN) or social security number on this form is required under N.D.C.C. §§ 57-01-15 and 57‑38‑32, and will be used for tax reporting, identification, and 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. 1 Changes affecting S corporations Developments, updates, and items of interest relating to S corporation income tax REMINDER - Electronic Filing S corporations with 10 or more shareholders are required to file the North Dakota income tax return and pay any tax due on it by electronic means. If an s-corporation return with 10 or more shareholders is filed on paper, the return will not be processed and may be subject to penalties due to the failure to file electronically. NEW - North Dakota passthrough withholding Income tax rates were lowered effective with the 2023 tax year. The highest rate was lowered to 2.50%. The income tax withholding rate on nonresident owners of passthrough entities was also lowered and is reflected on the 2023 income tax forms and instructions. NEW - Contributions to maternity home, child placing agency, or pregnancy help center An income tax credit is allowed for contributions to a child placing agency licensed by the North Dakota Department of Health and Human Services (DHS), a nonprofit maternity home located in North Dakota, or a pregnancy help center recognized by DHS. The credit is equal to 100% of the contribution. The credit is limited to 50% of a taxpayer’s tax liability. Any credit earned in excess of the limit may not be carried forward or back to other tax years. The credit is available to corporations, individuals, estates, trusts, and passthrough entities. A tax credit earned by a passthrough entity is passed through and allowed to each owner in proportion to their respective interests in the passthrough entity. NEW – Tax credit for compensation paid to an apprentice An income tax credit was created for the employment of a qualified apprentice in an apprenticeship program position in North Dakota. The apprentice must be in an apprenticeship program certified by the U.S. Department of Labor or be an electrical apprentice registered under North Dakota law. The credit is equal to 10% of the stipend or salary paid to the qualified apprentice. The maximum credit a taxpayer can claim over all tax years is $3,000 and limits the earning of a tax credit to only five apprentices at the same time. Any credit earned in excess of the limit may not be carried forward or back to other tax years. The credit is available to corporations, individuals, estates, trusts, and passthrough entities. A tax credit earned by a passthrough entity is passed through and allowed to each owner in proportion to their respective interests in the passthrough entity. UPDATE – Renaissance Zone tax incentive changes effective August 1, 2023 A variety of changes occurred to the Renaissance Zone program. One of the changes is the maximum length of an income tax incentive was changed from five years to eight years for a project that meets certain rehabilitation thresholds. Specifically, for residential (except owner occupied) and commercial property, a rehabilitation level exceeding 75% is required to allow for an exemption up to 8 years. Rehabilitation exceeding 50% is required for an exemption up to 5 years. For owner occupied residential property, rehabilitation exceeding 20% may qualify for an exemption up to eight years. For additional RZ information, please refer to our website: www.tax.nd.gov/renaissancezone-incentives. UPDATE – Automation tax credit The 2023 North Dakota Legislature made changes to the existing automation tax credit program. The program was expanded to include automation or robotic equipment purchased to upgrade or advance an animal agricultural process. The tax rate was changed from up to 20% to 15% of the cost of the qualifying equipment. The annual maximum statewide tax credits authorized was increased from one million to three million per year. Of the three million annual total tax amount, $500,000 of tax credits is reserved each year for first-time claimants for automation equipment and $500,000 of tax credits is reserved each year for first-time claimants for animal ag equipment. The program was also made permanent. Other provisions were unchanged. The changes are applicable for purchases during calendar year 2023, for which applications would be due to the Department of Commerce by January 31, 2024. The requirement continues to exist for a claimant to subsequently file with the Office of State Tax Commissioner a report of Improved Job Quality or Increased Productivity. UPDATE - Disabled employment tax credit In 2023, the North Dakota Legislature reenacted and made permanent the existing income tax credit related to the employment of an individual with developmental disabilities or severe mental illness. The existing provisions of the tax credit were unchanged, except the statewide limitation on the number of eligible employees was removed and there is no limit. Stay informed of developments Individuals, businesses, or other interested persons may sign up to receive email notifications when a newsletter or other important information is issued by the Office of State Tax Commissioner. To sign up, go to www.tax.nd.gov and select “News Center” at the top of the page. Then select “Email Sign-Up” 2 Form 60 Instructions 2023 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. General instructions Who must file A 2023 Form 60, S Corporation Income Tax Return, must be filed by a corporation that meets both of the following: • It is required to file a 2023 Form 1120‑S, U.S. Income Tax Return for an S Corporation. • It carries on business, or derives gross income from sources, in North Dakota during the 2023 tax year. Exception for certain S corporations. An S corporation must file a 2023 Form 40, North Dakota Corporation Income Tax Return, for the 2023 tax year if all of the following apply: • The corporation is a bank or other financial institution that formerly was subject to the North Dakota financial institution tax under N.D.C.C. Ch. 57‑35.3 and filed Form 35 for tax years prior to 2013. • The corporation made an election under N.D.C.C. § 57‑38-01.35 to be taxed as a C corporation for the 2013 tax year and filed a 2013 Form 40. Disaster recovery tax exemptions. Exemptions from state and local tax filing and payment obligations are available to out-of-state businesses and their employees who are in North Dakota on a temporary basis for the sole purpose of repairing or replacing natural gas, electrical, or telecommunication transmission property that is damaged, or under threat of damage, from a state- or presidentially-declared disaster or emergency. For more information, go to www.tax.nd.gov. Electronic Filing S-corporations with 10 or more owners are required to file the North Dakota income tax return and pay any tax due on it by electronic means. When and Where to file The 2023 Form 60 must be filed on or before (1) April 15, 2024, if filing for the 2023 calendar year, or (2) the 15th day of the 4th month following the end of the tax year, if filing for a fiscal year beginning in the 2023 calendar year. If the due date falls on a Saturday, Sunday, or holiday, the return may be filed on or before the next day that is not a Saturday, Sunday, or holiday. Note: Use the 2022 Form 60 if filing for a fiscal year beginning in the 2022 calendar year. • The corporation’s North Dakota net tax liability on the 2022 Form 40 (page 1, line 20) is zero and the corporation is not revoking the election for 2023, which is done by filing Form 60 for the 2023 tax year. If not required to file electronically, mail Form 60 and all required attachments to: See the instructions to Form 40 for more information. Extension of time to file Nonfiler penalty. If an S corporation does not file Form 60 as required, a minimum $500 penalty may be assessed if the failure continues after receiving a thirty-day notice to file from the North Dakota Office of State Tax Commissioner. Office of State Tax Commissioner 600 East Boulevard Ave., Dept. 127 Bismarck, ND 58505-0599 An extension of time to file Form 60 may be obtained in one of the following ways: • Obtain a federal extension. • Separately apply for a North Dakota extension. Federal extension. If an extension of time to file the federal corporation return is obtained, it is automatically accepted as an extension of time to file Form 60. If this applies, a separate North Dakota extension does not have to be applied for, nor does the Office of State Tax Commissioner have to be notified that a federal extension has been obtained prior to filing Form 60. The extended due date for North Dakota purposes is the same as the federal extended due date. North Dakota extension. If a federal extension is not obtained, but additional time is needed to complete and file Form 60, a separate North Dakota extension may be applied for by filing Form 101, Application for Extension of Time to File a North Dakota Tax Return. This is not an automatic extension—there must be good cause to request a North Dakota extension. Form 101 must be postmarked on or before the due date of Form 60. Notification of whether the extension is accepted or rejected will be provided by the Office of State Tax Commissioner. Extension interest. If Form 60 is filed on or before the extended due date, and the total amount of tax due is paid with the return, no penalty will be charged. Interest on the tax due will be charged at the rate of 12% per year from the original due date of the return to the earlier of the date the return is filed or the extended due date. Prepayment of tax due. If an extension of time to file Form 60 is obtained, any tax expected to be due may be paid on or before the regular due date to avoid paying extension interest. For more information, including payment options, obtain the 2023 Form 60‑EXT. 3 Penalty and interest If an extension of time to file the return was obtained, the tax due may be paid by the extended due date of the return without penalty, but extension interest will apply at the rate of 12% per year—see “Extension interest” and “Prepayment of tax due” on page 2. • a trust, including a grantor trust, that is not organized under North Dakota law. This only includes trusts that are subject to income tax. Exception from withholding. No withholding is required if any of the following apply: If Form 60 is filed by its due date (or extended due date), but the total amount of tax due is not paid by the due date (or extended due date), a penalty equal to 5% of the unpaid tax or $5.00, whichever is greater, must be paid. • The distributive share of North Dakota income is less than $1,000. If Form 60 is filed after its due date (or extended due date), and there is an unpaid tax due on it, a penalty equal to 5% of the unpaid tax due or $5.00, whichever is greater, for the month in which the return was due plus 5% of the unpaid tax due for each additional month (or fraction of a month) during which the return remains delinquent must be paid. This penalty may not exceed 25% of the tax due. • The nonresident shareholder is a trust and elects exemption from withholding on its distributive share of North Dakota income. For more information, obtain Form PWE. In addition to any penalty, interest must be paid at the rate of 1% per month or fraction of a month, except for the month in which the tax was due, on any tax due that remains unpaid after the return’s due date (or extended due date). Estimated tax payment (for 2024) An S corporation may, but is not required to, make estimated income tax payments. For more information, including payment options, obtain the 2024 Form 60-ES. Withholding from nonresident shareholders An S corporation must withhold North Dakota income tax at the rate of 2.50% from the year-end distributive share of North Dakota income of a nonresident shareholder. Nonresident shareholder. For purposes of this withholding requirement, a nonresident shareholder means: • an individual who is not domiciled in North Dakota, or • The nonresident shareholder elects to include the distributive share in a composite filing—see “Composite filing” on this page. Withholding procedure. This withholding requirement applies to a nonresident shareholder’s year-end distributive share of North Dakota income, which is determined at the end of the S corporation’s tax year and reported on Form 60, Schedule KS, Column  6. The requirement does not apply to actual distributions made to a nonresident shareholder during the tax year. The withholding amount is calculated and reported on Schedule KS, Column 7. If a nonresident shareholder meets certain conditions, an amount less than the amount calculated at the 2.50% tax rate may be withheld. For the qualifying conditions, see Form PWA. An S corporation must submit a payment for the the total amount of withholding reported on Schedule KS, Column 7, with Form 60 when it is filed. Composite filing A composite filing method is available to an S corporation with one or more eligible nonresident shareholders. Under this method, an S corporation calculates the North Dakota income tax on an eligible nonresident shareholder’s year-end distributive share of North Dakota income and pays the tax with Form 60. The tax is calculated at the highest individual income tax rate (which is 2.50% for the 2023 tax year), and no adjustments, deductions, or tax credits are allowed in calculating the tax. A composite filing satisfies the North Dakota income tax filing and payment obligations of the eligible nonresident shareholders included in it, which means they do not have to separately file their own North Dakota income tax returns. The composite filing method is optional and does not require prior approval from the Office of State Tax Commissioner, and a choice to use it may be made on a year-to-year basis. Eligible nonresident shareholder. For this purpose, a nonresident shareholder has the same meaning as that used for withholding income tax from nonresident shareholders— see “Withholding from nonresident shareholders” on this page. A nonresident shareholder is eligible to be included in a composite filing if both of the following apply: • The nonresident shareholder’s only source of income within North Dakota is one or more passthrough entities. A passthrough entity includes a trust, partnership, S corporation, limited liability company treated like a partnership or S corporation, and any other similar entity. • The nonresident shareholder elects to be included in a composite filing. An election is indicated by the S corporation’s calculation and reporting of a tax amount for the nonresident shareholder on Form 60, Schedule KS, Column 8. (If the distributive share is a loss, the tax is zero.) The distributive share of North Dakota income included in a composite return is subject to tax even if it is under $1,000. Composite filing method procedure. The tax under the composite filing method is calculated and reported on Form 60, Schedule KS, Column 8. An S corporation must submit a payment for the total tax reported on Schedule KS, Column 8, with Form 60 when it is filed. 4 Correcting a previously filed return If a corporation needs to correct an error on Form 60 after it is filed, the corporation must file an amended return. There is no special form for this purpose. See “How to prepare an amended 2023 return” below. Note: If required to electronically file the original return, the amended return must also be electronically filed. If a corporation paid too much tax because of an error on its 2023 Form 60, the corporation generally has three years from the due date of the return (excluding extensions) or the date the return was actually filed, whichever is later, in which to file an amended return to claim a refund of the overpayment. See N.D.C.C. § 57‑38-40 for other time periods that may apply. How to prepare an amended 2023 return 1. Obtain a blank 2023 Form 60. 2. Enter the corporation’s name, current address, FEIN, etc., in the top portion of page 1 of Form 60. 3. Fill in the “Amended return” circle at the top of page 1 of Form 60. 4. Complete Schedules FACT, BG, K, and KS using the corrected information. However, unless there is an increase in the amount reported on Schedule KS, Column 6, of the amended return, enter on Schedule KS, Column 7, the same amount reported on the previously filed return. Then complete lines 1 through 4 on page 1 of Form 60. 5. On line 6 of page 1 of Form 60, enter the total taxes due from the previously filed 2023 Form 60, page 1, line 4. 6. Complete line 8 (overpayment) or line 11 (tax due), whichever applies. If there is an overpayment on line 8, enter the full amount on line 10 (refund). On an amended return, the amount credited to the next year’s estimated tax (line 9) may not be increased or decreased. 7. Attach a statement explaining the reason(s) for filing the amended return. If it is because of changes the corporation or the IRS made to the corporation’s 2023 Federal Form 1120-S, attach a copy of the amended federal return or IRS notice. 8. Complete and provide a corrected North Dakota Schedule K-1 (Form 60) to the shareholders, as required. Reporting federal changes under state law so the Office of State Tax Commissioner can determine the shareholder’s correct North Dakota taxable income and verify if the shareholder has filed a return and paid the tax. General instructions for completing Form 60 If the Internal Revenue Service (IRS) changes or audits the federal corporation return, or if a corporation files an amended federal corporation return, an amended North Dakota Form 60 must be filed within ninety days after the final determination of the IRS changes or the filing of the amended federal return. Enclose a copy of the IRS audit report or the amended federal corporation return with the amended North Dakota Form 60. Complete Form 60 as follows: W-2/1099 reporting requirement 5. Complete Schedule K on page 3 of Form 60—see page 7. Every corporation doing business in North Dakota that is required to file Federal Form 1099 or W-2 must also file one with the Office of State Tax Commissioner. For more information, obtain the guideline Income Tax Withholding and see “Information Returns.” Disclosure notification Upon written request from the chairman of a North Dakota legislative standing committee or Legislative Management, the law requires the Office of State Tax Commissioner to disclose the amount of any deduction or credit claimed on a tax return. Any other confidential information, such as a taxpayer’s name or federal employer identification number, may not be disclosed. Use of information All of the information on Form 60 and its attachments is confidential by law and cannot be given to others except as provided by state law. Information about the shareholders is required 1. Complete Federal Form 1120-S in its entirety. 2. Complete Items A through H at the top of page 1 of Form 60—see page 5. 3. Complete Schedule FACT on page 2 of Form 60—see page 6. 4. Complete Schedule BG, if required, on page 2 of Form 60— see page 7. 6. Complete Schedule KS on page 5 of Form 60—see page 11. 7. Complete lines 1 through 13 on page 1 of Form 60—see page 12. 8. Complete Schedule K-1, if required, for the shareholders— see page 13. Rounding of numbers. Numbers may be entered on the return in dollars and cents, or they may be rounded to the nearest whole dollar. If rounding, drop the cents if less than $0.50 and round up to the next whole dollar amount if $0.50 or higher. For example, $25.36 becomes $25.00, and $25.50 becomes $26.00. Fiscal year filers. The tax year for North Dakota income tax purposes must be the same as the tax year used for federal income tax purposes. Use the 2023 Form 60 if the corporation’s taxable year began in the 2023 calendar year. 5 Specific line instructions for page 1 of Form 60, Items A-H Complete Items A through H at the top of page 1 of Form 60. Then complete Schedule FACT, Schedule BG, Schedule K, and Schedule KS before completing lines 1 through 13 on page 1 of Form 60. Item A - Tax year The same tax year used for federal income tax purposes (as indicated on the federal corporation return) must be used for North Dakota income tax purposes. Fill in the applicable circle. If the corporation uses a fiscal year, enter the beginning and ending dates of the fiscal year. Use the 2023 Form 60 only if the corporation’s tax year began in the 2023 calendar year. Item B - Name and address Enter the legal name of the corporation on the first line of the name and address area. If the corporation publicly operates under a fictitious or assumed name (which, in most states, must be recorded or registered with the state), enter that name on the second line of the name and address area. Always use the current address of the corporation. Item C - Federal EIN North Dakota uses the federal employer identification number (FEIN or federal EIN) for identification purposes. Enter the federal employer identification number from page 1 of Federal Form 1120-S. Item D - Business code number Enter the business code from the NAICS code list found on the Office of State Tax Commissioner’s website at www.tax.nd.gov. Enter the code that most closely describes the industry from which the corporation derives the majority of its income. Item E - Date incorporated Enter the date the business incorporated from page 1 of Federal Form 1120-S. Item F - Indicators Fill in all applicable circles, as follows: Initial return. Fill in if this is the first return filed in North Dakota by the corporation. Final return. Fill in if this is the last return to be filed in North Dakota by the S corporation. Farming/ranching corporation. Fill in if the corporation is registered as a farming or ranching corporation with the North Dakota Secretary of State. Composite return. Fill in this circle only if (1) the corporation has one or more nonresident shareholders eligible to be included in a composite filing and (2) all of them elected to include their distributive shares of North Dakota source income in a composite filing. See “Composite filing” on page 3 for more information. Amended return. Fill in if this return is being filed to correct a previously filed 2023 Form 60. See “Correcting a previously filed return” on page 4 for more information. Extension. Fill in if a federal or state extension of time to file the return was obtained. See “Extension of time to file” on page 2 for more information. Item G - Number of shareholders Enter the total number of shareholders. Also enter the number of each type of shareholder. For “Trust/estate shareholders,” only include trusts that are not tax-exempt organizations for federal income tax purposes. Item H - Qualified subchapter S subsidiary Indicate whether the corporation is a parent of one or more qualified subchapter S subsidiaries. Attach a statement to Form 60 listing the name and federal employer identification number of each qualified subchapter S subsidiary. Worksheet for Schedule BG, Line 6 North Dakota net operating loss deduction 1. Net recognized built-in gain from Form 60, Schedule BG, line 2............................................................. 1 _________________ 2. Apportionment factor from Schedule BG, line 4....................... 2 __.__ __ __ __ __ __ 3. North Dakota apportioned built-in gain. Multiply line 1 by line 2........................................................ 3 _________________ 4. Accumulated North Dakota net operating loss as of the end of the last tax year as a C corporation. Enter as a positive number...................4 _________________ 5. Portion of line 4 that was previously deducted for North Dakota income tax purposes by the corporation. Enter as a positive number...................5 _________________ 6. Remaining North Dakota net operating loss. Subtract line 5 from line 4. If less than zero, enter -0-............. 6 _________________ 7. North Dakota net operating loss deduction. Enter smaller of line 3 or line 6. Enter result on Schedule BG, line 6.................. 7 _________________ 2023 Corporation Tax Rate Schedule If the amount on 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 6 Instructions for Schedule FACT (Form 60, page 2) General instructions All corporations must complete the applicable portions of Schedule FACT as follows: • 100% North Dakota corporation If the corporation conducted all of its trade or business within North Dakota during the tax year, skip lines 1 through 13 and enter “1.000000” on line 14 of Schedule FACT. • Multistate corporation If the corporation conducted its trade or business both within and without North Dakota during the tax year, complete lines 1 through 14 of Schedule FACT. However, if all of the shareholders consist of only North Dakota resident individuals, estates, and trusts, and the corporation is not required to complete Schedule BG, skip lines 1 through 13, and enter “1.000000” on line 14 of Schedule FACT. Apportionment factor in general In general, the apportionment factor is a product of a formula consisting of an equally-weighted average of three factors: property, payroll, and sales. Each factor represents the percentage of the corporation’s North Dakota activity compared to its total activity everywhere. A corporation multiplies its business income by the apportionment factor to determine the portion of its business income attributable to North Dakota. If the corporation includes the distributable share of income from a partnership in its apportionable business income, include in the numerator and denominator of each factor the corporation’s proportionate share of the partnership’s apportionment factors—see the specific line instructions for more information. Do not include in the factors any property, payroll, or sales related to allocable nonbusiness income—see the instructions to Form 60, Schedule K, line 22, for what constitutes allocable nonbusiness income. If the amount of any factor’s denominator is zero, exclude that factor from the calculation. Special apportionment rules may apply in the case of certain industries or unique circumstances. For additional information on the apportionment factor, see N.D.C.C. Ch. 57-38.1 and N.D. Admin. Code Ch. 81-03-09. Specific line instructions Property Factor Lines 1 through 6 Owned and rented property Enter on the applicable line the average value of real and tangible personal property owned and rented by the corporation. For owned property, this generally means the average of the original cost (before depreciation) used for federal income tax purposes. For rented property, this generally means the amount of rent paid multiplied by eight. Certain property items are subject to special rules. Do not include amounts related to construction in progress. Include on line 5 the corporation’s share of the property factor from a North Dakota Schedule K-1 (Form 58), Part 6. benefit plans that are not considered taxable wages to the employee. An employee is an individual treated as an employee under the usual common law rules, which generally mirror an individual’s status for purposes of unemployment compensation and the Federal Insurance Contribution Act. Compensation of an employee’s services performed entirely within North Dakota is assigned to North Dakota. For an employee whose services are performed in more than one state, compensation is generally assigned to North Dakota based on the amount of compensation reported to North Dakota for unemployment compensation purposes. Whether or not state income tax was withheld from an employee’s compensation does not affect where the compensation is assigned for apportionment factor purposes. Include on this line in the applicable column the corporation’s share of the payroll factor from a North Dakota Schedule K-1 (Form 58), Part 6. For more complete information on the payroll factor, see N.D. Admin. Code §§ 81‑03-09-22 through 81-03-09-25. Sales Factor The average value of owned and rented property is assigned to North Dakota if the property is located in North Dakota. The amount attributable to mobile property is generally assignable to North Dakota based on a ratio of the property’s time spent in North Dakota. For more complete information on the property factor, see N.D. Admin. Code §§ 81-03-09-15 through 81-03-09-21 and 81-03-09-33. Line 9 Everywhere sales Enter the corporation’s total sales or receipts, less returns or allowances, for the tax year. Sales generally means all gross receipts of a corporation. However, the types of sales or gross receipts included in the sales factor depend on the nature of the corporation’s regular business activities and may include amounts other than sales reported on Form 1120-S, line 1. Include on this line the corporation’s share of the everywhere sales from a North Dakota Schedule K-1 (Form 58), Part 6. Line 8 Enter the amount of total compensation paid to employees for the tax year. This includes gross wages, salaries, commissions, and any other form of remuneration paid to the employees. Use the amount before deductions for deferred compensation, flexible spending plans, and other payroll deductions. Do not include amounts paid for employee Line 10 North Dakota sales For sales of tangible property, the sale is assigned to North Dakota if the destination of the property is in North Dakota, regardless of the shipping terms. For sales of other than tangible property, the sale is assigned to North Dakota if the income-producing activity which gave rise to the receipt is performed in North Dakota. Payroll Factor 7 Include on this line the corporation’s share of the North Dakota sales from a North Dakota Schedule K-1 (Form 58), Part 6. For more complete information, see N.D. Admin. Code §§ 81-03-09-26 through 81-03-09-31 and 81-03-09-34. Line 11 Throwback sales Enter the amount of sales shipped from a location in North Dakota that are delivered to the U.S. government or to another state or country where the sales are not subject to a tax measured by income in that jurisdiction. For more complete information, see N.D. Admin. Code §§ 81-03-09-29 and 81-03-09-30. Line 14 Apportionment factor Divide line 13 by the number of factors having an amount greater than zero in column 1 on lines 7, 8, and 12. Enter the result on this line. Instructions for Schedule BG (Form 60, page 2) An S corporation that is subject to the federal income tax on excess net passive income or built-in gains is subject to North Dakota income tax on the same income and must complete Schedule BG. Line 4 Apportionment factor If the corporation conducts its trade or business both within and without North Dakota during the tax year (multistate corporation), it must complete lines 1 through 14 of Schedule FACT to calculate an apportionment factor to enter on Schedule BG, line 4. Line 6 North Dakota NOL deduction If the corporation has always been an S corporation, enter zero on this line. However, if a corporation changed from a C corporation to an S corporation under an election first made on or after January 1, 1987, it may carry forward an unused North Dakota net operating loss incurred while a C corporation and deduct it from the apportioned built-in gain subject to North Dakota tax. Complete the Worksheet for Schedule BG, Line 6 on page 5 to calculate the amount to enter on this line. Attach a copy of the worksheet to Form 60. Instructions for Schedule K (Form 60, page 3) All corporations must complete Schedule K. The purpose of this schedule is to show the total amount of North Dakota adjustments, credits, and other items distributable to its shareholders. These items may be applicable to the preparation of the shareholders’ North Dakota income tax returns. Schedule K-1 from another passthrough entity. Include on the applicable lines of Schedule K any adjustments, credits, etc., from a North Dakota Schedule K-1, as instructed in the partner or beneficiary instructions to that form. Reminder: Be sure to attach to Form 60 any prescribed schedule or other supporting document specified in the instructions. Property tax clearance North Dakota Century Code § 57-01‑15.1 provides that, before certain state tax incentives may be claimed, a taxpayer must obtain a property tax clearance record from each North Dakota county in which the taxpayer holds a 50 percent or more ownership interest in real property. The property tax clearance record(s) must be attached to the North Dakota tax return on which the incentive is claimed. Certain tax incentives on Form 60, Schedule K, are subject to this requirement. The incentives subject to this requirement are identified in the box at the top of Schedule K. If the corporation is claiming any of the specified incentives, it must complete the property tax clearance section at the top of Schedule K. If the corporation is required to attach a property tax clearance record, obtain one by completing the form Property Tax Clearance Record, which is available on the Office of State Tax Commissioner’s website. Line 1 Interest from U.S. obligations Enter on this line interest income from U.S. obligations and from securities the interest of which is specifically exempted from state income tax by federal statute. Include the portion of dividend income from a mutual fund attributable to the fund’s investment in the same kinds of securities. Do not enter on this line interest income from securities of the Federal Home Loan Mortgage Corporation (Freddie Mac), Federal National Mortgage Association (Fannie Mae), or Government National Mortgage Association (Ginnie Mae), nor from a federal income tax refund or repurchase agreement. Attach a statement identifying the specific securities from which the interest was derived. Line 2 Renaissance zone exemption Enter on this line the amount from Schedule RZ, Part 7, line 1c. Attach Schedule RZ. Line 3 New or expanding business income exemption If the corporation qualified for the new or expanding business income exemption under N.D.C.C. Ch. 40-57.1, enter the exempt portion of the corporation’s trade or business income. See N.D. Admin. Code § 81-03‑01.1‑06 for guidance on calculating the amount of the exempt income. Attach a statement showing the calculation of the exempt income. Line 4a Renaissance zone historic property preservation tax credit Enter on this line the amount from Schedule RZ, Part 7, line 4. Attach Schedule RZ. Line 4b Renaissance fund organization investment tax credit Enter on this line the amount from Schedule RZ, Part 7, line 5. Attach Schedule RZ. 8 Line 4c Renaissance zone nonparticipating Worksheet for Schedule KS, Column 6 Enter on this line the amount from Schedule RZ, Part 7, line 6. Attach Schedule RZ. 1. Shareholder’s amount from Column 5.................................... 1 _________________ property owner tax credit Line 5 Seed capital investment tax credit If the corporation invested in a qualified business for purposes of the seed capital investment tax credit, multiply the total amount invested during the 2023 tax year by 45% and enter the result on this line. See N.D.C.C. Ch. 57-38.5. Attach a copy of the Qualified Seed Capital Business Investment Reporting form. Or, if claiming a seed capital investment credit from a North Dakota Schedule K-1, attach a statement identifying the qualified business in which the investment was made. Line 6 Ag commodity investment tax credit If the corporation invested in a qualified business for purposes of the agricultural commodity processing facility investment tax credit, multiply the total amount invested during the 2023 tax year by 30% and enter the result on this line. The corporation is allowed no more than $250,000 in total credits for investments made in tax years 2005 and after. See N.D.C.C. Ch. 57-38.6. Attach a copy of the Ag Commodity Processing Facility Investment Reporting form. Or, if claiming an agricultural commodity processing facility investment credit from a North Dakota Schedule K-1, attach a statement identifying the facility in which the investment was made. Line 7 Biodiesel or green diesel fuel blending tax credit If the corporation is a licensed supplier of biodiesel or green diesel fuel, it is allowed a credit equal to five cents per gallon for blending biodiesel or green diesel fuel having at least a 5% blend (“B5”) that meets ASTM specifications. The blending must be done in North Dakota. For this purpose, a “supplier” means a person who distributes the biodiesel For nonresident individual shareholders only— see instructions to Schedule KS, Column 6. 2. Allocable income (less related expenses) included in the amount on line 1................................................................. 2 _________________ 3. Interest from U.S. obligations included in the amount on line 1. 3 _________________ 4. Add lines 2 and 3................................................................ 4 _________________ 5. Apportionable income (loss). Subtract line 4 from line 1........... 5 _________________ 6. Apportionment factor from Schedule FACT, line 14................... 6 __.__ __ __ __ __ __ 7. Multiply line 5 by line 6........................................................ 7 _________________ 8. Allocable income (less related expenses) reportable to North Dakota.................................................................... 8 _________________ 9. Add lines 7 and 8. Enter result in Column 6............................ 9 _________________ or green diesel fuel from a terminal in North Dakota. Enter the credit on this line. See N.D.C.C. § 57-38-01.22. Attach a statement showing the calculation of the credit. Line 8 Biodiesel or green diesel fuel sales equipment tax credit If the corporation is a licensed seller of biodiesel or green diesel fuel, it is allowed a credit equal to 10% of the costs to adapt or add equipment to its North Dakota facility to enable it to sell diesel fuel having at least a 2% biodiesel or green diesel blend (“B2”) that meets ASTM specifications. For this purpose, a “seller” means a person who acquires the fuel from a wholesale supplier or distributor for resale to a consumer at a retail location. Except for costs incurred before January 1, 2005, include eligible costs incurred before the tax year in which sales of the eligible biodiesel or green diesel fuel begin. The credit is allowed in each of five tax years, starting with the tax year in which sales of the eligible biodiesel or green diesel fuel begin. Enter the credit on this line. See N.D.C.C. § 57-38-01.23. Attach a statement showing the calculation of the credit. Line 9 Employer internship program credit If the corporation hired an eligible college student under a qualifying internship program set up in North Dakota, it is allowed a credit equal to 10% of the compensation paid to the intern. For details, see N.D.C.C. § 57‑38‑01.24. The corporation is allowed no more than $3,000 of credits for all tax years. Line 9a. Enter the allowable credit on this line. Line 9b. Enter the number of eligible interns employed during the 2023 tax year. Disregard this line if the credit is from a passthrough entity. Line 9c. Enter on this line the total compensation paid to eligible interns during the 2023 tax year (as shown on their 2023 Form W-2s). Disregard this line if the credit is from a passthrough entity. Line 10 Research expense tax credit A credit is allowed for conducting qualified research in North Dakota. For details, see N.D.C.C. § 57-38-30.5. Enter the allowable credit on this line. Attach a statement showing the computation of the base amount and the credit. Line 11 Endowment fund tax credit A tax credit is allowed for making a contribution to a qualified endowment fund. For more information, see Schedule QEC (for filers of Forms 38, 40, 58, and 60). Attach Schedule QEC. Lines 11a and 11b. Enter on these lines the applicable amounts from Schedule QEC. 9 Lines 11c and 11d. Enter on these lines an endowment fund credit and the related contribution amount shown on a North Dakota Schedule K-1 received from an estate, trust, partnership, or S corporation. Line 12 Workforce recruitment tax credit If the corporation employs extraordinary recruitment methods to hire an employee to fill a hardto-fill position in North Dakota, it is allowed a tax credit equal to 5% of the compensation paid during the first 12 months to the employee hired to fill that position. The credit may be claimed in the first taxable year beginning after the employee completes the first 12 consecutive months of employment. For details, see N.D.C.C. § 57‑38-01.25. Line 12a. Enter the allowable credit on this line. Line 12b. Enter the number of eligible employees whose first 12 months of employment ended during the corporation’s 2022 tax year. Line 12c. Enter the total compensation paid to the eligible employees during their first 12 consecutive months of employment ending in the corporation’s 2022 tax year. Line 13 Credit for wages paid to a mobilized employee Enter on this line the amount from Schedule ME, line 13. See N.D.C.C. § 57‑38‑01.31. Attach Schedule ME. Lines 14 through 16 Nonprofit private school tax credits Tax credits are allowed for making charitable contributions to qualifying nonprofit private primary schools, high schools, and colleges located in North Dakota. A separate credit is allowed for each of the three categories of school—primary school, high school, and college. For each category of school, the credit equals 50% of the contributions made to all eligible schools within the category. (Note: Additional limitations on the allowable credit apply at the shareholder level.) For a list of the eligible schools within each of the three categories of schools, see the table on page 13 of this booklet. Election. A corporation may elect, on a contribution by contribution basis, to treat a contribution as having been made during the 2023 tax year if it is made on or before the due date, including extensions, for filing the 2023 Form 60. Make the election by attaching to the return a document containing the following: 1. A statement that the election is being made. 2. Name of qualifying school. 3. Date of contribution. 4. Amount of contribution. To qualify, a contribution must be made directly to, or specifically designated for the exclusive use of, a qualifying school. School network or organization. If a contribution is made payable to the account or fund of a school network or organization that governs or benefits multiple schools, the contribution will qualify only if the corporation specifically designates it for the use of a qualifying school, and the network or organization separately accounts for the funds on behalf of that school. The corporation must obtain a statement from the network or organization that identifies the qualifying school and the amount contributed to it. If the qualifying school falls into both the primary and high school categories, also see the next paragraph. Schools in both primary and high school categories. If a contribution is made to a qualifying school that provides education in one or more grades in both the primary school category (kindergarten through 8th grades) and the high school category (9th through 12th grades), a separate credit is allowed for the portion of the contribution designated for use within each school category. The corporation must obtain a statement from the qualifying school or the school network or organization that identifies the qualifying school and shows the amount contributed within each category of school. If the corporation does not obtain a statement, one-half of the total contribution will be deemed to have been made to each category of school. Line 14. Enter on this line the allowable credit for contributions to qualified nonprofit private primary schools. Line 15. Enter on this line the allowable credit for contributions to qualified nonprofit private high schools. Line 16. Enter on this line the allowable credit for contributions to qualified nonprofit private colleges. Line 17 Angel investor investment credit Important! This line is only for credits attributable to investments made in qualified businesses by angel funds organized and certified on or after July 1, 2017. If an S corporation is a member of a North Dakota angel fund that is organized and certified on or after July 1, 2017, a credit is allowed to the corporation if it participates in a qualified investment made by the angel fund in a qualified business. The angel fund is required to provide a Participating Angel Investor Statement to the S corporation, which evidences the corporation’s investment. For qualified investments made after June 30, 2017, that fall into the S corporation’s 2023 tax year, multiply the investment amount by the applicable credit rate shown on the statement. If an S corporation participates in more than one qualified investment during the tax year, calculate the credit separately for each Participating Angel Investor Statement received and add the separately calculated amounts. Enter the credit amount on this line. Do not enter on this line an angel investor credit from a North Dakota Schedule K-1. See N.D.C.C. § 57-38-01.26 (effective for investments made after June 30, 2017). Attach a copy of the Participating Angel Investor Investment Statement. 10 Line 18 Automation tax credit If the corporation qualified for the automation tax credit under N.D.C.C. § 57-38-01.41, enter on this line the amount of the credit shown on the credit approval letter issued to the corporation by the North Dakota Office of State Tax Commissioner. Line 19 Credit for hiring an individual with a developmental disability or mental illness A tax credit is available for employing an individual with a developmental disability or mental illness. To qualify, an employer must apply for and obtain certification from the North Dakota Department of Human Services, Vocational Rehabilitation Division, that the individual has a severe disability, is eligible for the agency’s services, and requires customized or supported employment to become employed. The credit is equal to 25% of the wages paid to the individual during the tax year, up to a maximum credit of $1,500 per year. The credit is allowed for each eligible individual hired. Attach a copy of the certification letter from Human Services. Line 20 Maternity home, child placing agency, or pregnancy help center tax credit A tax credit is allowed for contributions to the following organizations: (1) a child placing agency licensed by the North Dakota Department of Health and Human Services (DHS), (2) a nonprofit maternity home located in North Dakota, or (3) a pregnancy help center recognized by DHS. The credit is equal to 100% of the contribution and is limited to 50% of a taxpayer’s tax liability. Enter on this line the amount from Schedule MCP, line 8. Attach Schedule MCP. The credit is available to corporations, individuals, estates, trusts, and passthrough entities. A tax credit earned by a passthrough entity is passed through and allowed to each owner in proportion to their respective interests in the passthrough entity. Unused credit. There is no carryover provision to succeeding tax years. Line 21 Apprentice tax credit A tax credit is available for compensation paid by a corporation to an apprentice. The credit equals 10% of the stipend or salary paid to a qualified apprentice employed in North Dakota. The apprentice must be in an apprenticeship program certified by the U.S. Department of Labor or be an electrical apprentice registered under North Dakota law. The credit is allowed for up to 5 apprentices employed by the corporation at the same time. Lifetime credit limit. A corporation is allowed no more than $3,000 in total tax credits for eligible wages paid in all tax years. Line 21a. Enter the allowable credit on this line. Line 21b. Enter the number of eligible apprentices employed during the 2023 tax year. Line 21c. Enter the total amount of wages, salaries, or other compensation paid to eligible apprentices employed during the 2023 tax year (as shown on their 2023 Form W-2’s). Line 22 Allocable nonbusiness income Lines 22a and 22b apply only if the corporation meets all of the following: • It is a multistate corporation, i.e., it carries on its business both within and without North Dakota. • It has one or more nonresident individual, estate, or trust shareholders. • It has allocable nonbusiness income. Generally, all income received by a corporation is considered business income unless clearly classifiable as nonbusiness income. The classification of income by the labels used to describe it—for example, interest, dividends, rents, royalties, operating income, or nonoperating income—is generally not relevant in determining whether income is business or nonbusiness income. For more information, see N.D. Admin. Code § 81-03-09-03. Nonbusiness income is not apportioned using the apportionment factor (from Schedule FACT) but is allocated within or without North Dakota as provided under N.D.C.C. §§ 57-38.1-04 through 57-38.1‑08 and N.D. Admin. Code § 81‑03‑09‑09. Expenses must be attributed to the nonbusiness income in a manner that fairly distributes all of the corporation’s expenses to its business and nonbusiness income. If the corporation has an item of nonbusiness income subject to allocation, the corporation must take this into account when calculating the North Dakota distributive share of income or loss reportable on Schedule KS and Schedule K-1 (Form 60). See the instructions to Schedule KS, Column 6, for more information. In addition to completing lines 22a and 22b, the corporation must attach the following to Form 60: • A statement on which each item of nonbusiness income is shown along with its related expenses. • A statement explaining the basis for treating the item of income as nonbusiness income subject to allocation. • If an item of nonbusiness income is allocated to a state other than North Dakota, a copy of that other state’s income tax return must be attached. If the corporation is not required to file an income tax return with the other state, the corporation must indicate this in the attached statement. Line 22a. Enter the total allocable income (less related expenses) from all sources within and without North Dakota. Line 22b. Enter the portion of the amount on line 22a that is allocable to North Dakota. Line 23 Disposition of I.R.C. Section 179 property Lines 23a through 23d apply only if the corporation sold, exchanged, or disposed of property for which an I.R.C. Section 179 deduction was passed through to the shareholders. 11 Note: The corporation is required to report this same information on a separate statement attached to Federal Form 1120-S, Schedule K, line 17d. For lines 23a through 23d, multiply the corresponding combined amount for all shareholders as reported on Federal Form 1120‑S, Schedule K, line 17d, by the North Dakota apportionment factor from Schedule FACT, line 14, and enter the result. However, if the property disposed of is treated as a nonbusiness asset the gain or loss from which is subject to allocation under N.D.C.C. §§ 57-38.1-04 through 57-38.1-08, subtract the amounts for that asset before multiplying by the apportionment factor. Include the nonbusiness gain or loss from the disposition on Form 60, Schedule K, line 22. Instructions for Schedule KS (Form 60, page 5) Schedule KS must be completed to provide information about each shareholder. If the corporation has more than seven shareholders, complete and attach additional schedules as needed to list all shareholders. If more than one Schedule KS is needed, complete lines 1 through 4 on only one of them, and include the combined amount for all of the schedules on that one schedule. All Shareholders (Columns 1 through 5) Columns 1 and 2 Enter the name, mailing address, and shareholder’s identifying number as shown on the shareholder’s Federal Schedule K-1. If the shareholder is a single member limited liability company (LLC) that is a disregarded entity for federal income tax purposes, enter the owner’s name, address, and identifying number. Column 3 Identify the entity type of the shareholder by entering the applicable code letter as follows: Entity type Code letter Individual...................... I Trust............................. T Decedent’s estate........... D Bankruptcy estate.......... B Exempt organization....... O If the shareholder is a limited liability company (LLC) that is a disregarded entity for federal income tax purposes, enter the code letter for the type of entity of the LLC’s owner. Note: The “Trust” entity type applies to a trust that files Federal Form 1041 or, in lieu of filing Federal Form 1041, elects an alternative reporting method under the federal income tax regulations and to an IRA (generally filing Federal Form 990-T to report Unrelated Business Taxable Income). Column 4 Enter the shareholder’s stock ownership percentage as shown on the shareholder’s Federal Schedule K-1. Column 5 Enter the sum of the following items from the shareholder’s Federal Schedule K-1 (Form 1120-S), Part III: Box 1 Ordinary business income (loss) Box 2 Net rental real estate income (loss) Box 3 Other net rental income (loss) Box 4 Interest income Box 5a Ordinary dividends Box 6 Royalties Box 7 Net short-term capital gain (loss) Box 8a Net long-term capital gain (loss) Box 9 Net section 1231 gain (loss) Box 10 Other income (loss) Box 11 Section 179 deduction Box 12 Other deductions (Only include the deductions allowed as a deduction from gross income in calculating adjusted gross income for federal income tax purposes.) Box 17 Include the gain (loss) from I.R.C. Section 179 property disposition (For purposes of calculating the gain or loss, include all of the Section 179 deduction passed through to the shareholder, regardless of whether or not the shareholder actually deducted all of it.) Nonresident Shareholders Only (Columns 6 through 8) For purposes of Columns 6 through 8, a nonresident shareholder means: • an individual who is not domiciled in North Dakota, or • a trust, including a grantor trust, that is not organized under North Dakota law. This only applies to trusts that are subject to income tax. Column 6 Complete Column 6 for each nonresident shareholder. Multiply the shareholder’s amount in Column 5 by the apportionment factor from Schedule FACT, line 14, and enter the result in Column 6. However, complete the Worksheet for Schedule KS, Column 6 on page 8 to calculate the amount to enter in Column 6 if either or both of the following apply: • The corporation has an item of nonbusiness income subject to allocation. See the instructions to Form 60, Schedule K, line 20, for more information. • The amount in Column 5 includes interest from U.S. obligations. Column 7 If a nonresident shareholder’s distributive share of North Dakota income in Column 6 is $1,000 or more, multiply the amount in Column 6 by 2.50% (.025) and enter the result in Column 7. However, the following exceptions apply: • If the nonresident shareholder gives you a completed Form PWA, enter the amount from line 5 of Form PWA in Column 7 and fill in the circle under “Form PWA or Form PWE.” 12 • If the nonresident shareholder elected to be included in a composite filing, leave Column 7 blank and see the instructions to Column 8. See “Withholding from nonresident shareholders” on page 3 for more information. Column 8 Note: Leave Column 8 blank if Column 7 was completed for the nonresident shareholder. Complete Column 8 for each nonresident shareholder electing to be included in a composite filing. Multiply the amount in Column 6 by 2.50% (.025) and enter the result in Column 8. If the amount in Column 6 is zero or less, enter zero in Column 8. See “Composite filing” on page 3 for more information. Specific line instructions for page 1 of Form 60, lines 1-13 Complete Schedule FACT, Schedule BG, Schedule K, and Schedule KS before completing lines 1 through 13 on page 1 of Form 60. Line 5 Income tax withholding Enter the North Dakota income tax withholding shown on a 2023 Form 1099 or North Dakota Schedule K-1. Be sure the state identified on the Form 1099 is North Dakota. Also enter the North Dakota income tax withholding shown on a 2022 North Dakota Schedule K-1 if the entity that issued it has a fiscal tax year ending in the corporation’s 2023 tax year. Do not enter on this line North Dakota extraction or production taxes withheld from mineral interest income, such as an oil or gas royalty, because they are not income taxes. Attach a copy of the Form 1099 or North Dakota Schedule K-1. Line 6 Estimated tax payments Enter the amount paid with the 2023 Forms 60-EXT and 60-ES plus any overpayment applied from the 2022 Form 60. However, if filing an amended return, do not enter any previously paid estimated tax amount; instead, enter the amount of the total taxes due from line 4 of the previously filed original or amended return. Line 9 Application of overpayment to 2024 If there is an overpayment on line 8, the corporation may elect to apply part or all of it as an estimated payment toward its 2024 tax liability. To make the election, enter the portion of line 8 to be applied on line 9. If this election is made, the election and the amount applied may not be changed after the return is filed. If this is an amended return, do not make an entry on this line. Line 11 Tax due A tax due must be paid in full with the return when it is filed. See the instructions to line 13 for payment options. Line 12 Penalty and interest The Office of State Tax Commissioner will notify the corporation of any penalty and interest payable on a tax due shown on Form 60. However, the corporation may calculate the penalty and interest amounts and include them in the balance due on Form 60. Penalty. Calculate the penalty amount as follows: • If Form 60 is filed by the due date (or extended due date), but the total amount of tax due is not paid with the return, the penalty is equal to 5% of the unpaid tax or $5.00, whichever is greater. • If Form 60 is filed after its due date (or extended due date), and there is an unpaid tax due on it, a penalty equal to 5% of the unpaid tax due (with a $5.00 minimum) applies for the month the return was due, plus 5% of the unpaid tax due (with a $5.00 minimum) for each month or fraction of a month the return remains unfiled, not to exceed the greater of 25% of the unpaid tax due or $25.00. Interest. Calculate the interest amount as follows: • If an extension of time to file Form 60 was obtained, extension interest is calculated at the rate of 12% per year on any tax due from the due date of the return to the earlier of the extended due date or the date the return was filed. • If the total amount of tax due is not paid by the due date (or extended due date) of the return, interest is calculated at the rate of 1% per month or fraction of a month on the unpaid tax, except for the month in which the return was due. Line 13 Balance due The balance due must be paid in full with th
Extracted from PDF file 2023-north-dakota-form-60-booklet.pdf, last modified January 2024

More about the North Dakota Form 60 Booklet Corporate Income Tax Tax Return TY 2023

We last updated the Form 60 Booklet - S Corporation Income Tax in February 2024, so this is the latest version of Form 60 Booklet, fully updated for tax year 2023. You can download or print current or past-year PDFs of Form 60 Booklet directly from TaxFormFinder. You can print other North Dakota tax forms here.


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Other North Dakota Corporate Income Tax Forms:

TaxFormFinder has an additional 44 North Dakota income tax forms that you may need, plus all federal income tax forms.

Form Code Form Name
Form 60 S Corp Income Tax Return
Form 38 Fiduciary Income Tax Return
Form 58 Schedule K-1 Partner's Share of ND Income, Deductions, Adjustments, Credits
Form 58-PV Partnership Return Payment Voucher
Form 58 Booklet Form 58 Partnership Income Tax Booklet

Download all ND tax forms View all 45 North Dakota Income Tax Forms


Form Sources:

North Dakota usually releases forms for the current tax year between January and April. We last updated North Dakota Form 60 Booklet from the Office of State Tax Commissioner in February 2024.

Show Sources >

Form 60 Booklet is a North Dakota Corporate Income Tax form. Like the Federal Form 1040, states each provide a core tax return form on which most high-level income and tax calculations are performed. While some taxpayers with simple returns can complete their entire tax return on this single form, in most cases various other additional schedules and forms must be completed, depending on the taxpayer's individual situation, to create a complete income tax return package.

About the Corporate Income Tax

The IRS and most states require corporations to file an income tax return, with the exact filing requirements depending on the type of company.

Sole proprietorships or disregarded entities like LLCs are filed on Schedule C (or the state equivalent) of the owner's personal income tax return, flow-through entities like S Corporations or Partnerships are generally required to file an informational return equivilent to the IRS Form 1120S or Form 1065, and full corporations must file the equivalent of federal Form 1120 (and, unlike flow-through corporations, are often subject to a corporate tax liability).

Additional forms are available for a wide variety of specific entities and transactions including fiduciaries, nonprofits, and companies involved in other specific types of business.

Historical Past-Year Versions of North Dakota Form 60 Booklet

We have a total of ten past-year versions of Form 60 Booklet in the TaxFormFinder archives, including for the previous tax year. Download past year versions of this tax form as PDFs here:


2023 Form 60 Booklet

S Corporation Income Tax Booklet 2023

2022 Form 60 Booklet

S Corporation Income Booklet - Form 60 (2022)

2021 Form 60 Booklet

S Corporation Income Tax Booklet 2021

2020 Form 60 Booklet

Form 60 - S Corporation Income Tax Return

2019 Form 60 Booklet

Form 60 S Corporation Income Tax Return 2019

2018 Form 60 Booklet

S Corporation Income Tax Booklet

2017 Form 60 Booklet

S Corporation Income Tax Booklet

2016 Form 60 Booklet

Form 60 - S Corporation Income Tax Booklet - 2015

2015 Form 60 Booklet

Form 60 - S Corporation Income Tax Booklet - 2015

S Corporation Income Tax Booklet 2013 Form 60 Booklet

S Corporation Income Tax Booklet


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