N.D.C.C. § 57-65-09 — Tax commissioner to audit returns and correct tax

1. The tax commissioner may determine whether a return required to be filed with the tax
commissioner under this chapter is a true and correct return of gross production, and
of the value, of the potash and byproducts. If a return required by this chapter is not
filed, or if a return when filed is incorrect or insufficient, the tax commissioner shall
determine the amount of tax due from any information the tax commissioner may be
able to obtain, and, if necessary, may estimate the tax on the basis of external indices.
2. The tax commissioner shall have three years after the due date of the original return or
three years after the original return is filed, whichever period expires later, to assess
the tax and, if additional tax is due, provide notice of the determination of the additional
tax to the taxpayer. If there is a change in tax liability on any return by an amount in
excess of twenty -five percent of the amount of tax before any credits, any additional
tax determined to be due may be assessed anytime within six years after the due date
of the return or six years after the return was filed, whichever period expires later.
3. If a taxpayer files an amended return, the tax commissioner has two years after the
return is filed to audit the return and assess any additional tax attributable to the
changes or corrections even though other time periods prescribed in this section for
the assessment of tax may have expired. The provisions of this section do not limit or
restrict any other time period prescribed in this section for the assessment of tax that
has not expired as of the end of the two-year period prescribed in this section.
4. If false or fraudulent information is given in the return, or if the failure to file a return is
due to the fraudulent intent or the willful attempt of the taxpayer in any manner to
evade the tax, the time limitations in this section do not apply, and the tax may be
assessed at any time.
5. If before the expiration of the time periods prescribed in subsections 1, 2, and 3 the tax
commissioner and a person consent in writing to an extension of time for the
assessment of the tax, an assessment of additional tax may be made at any time prior
to the expiration of the period agreed upon. The period so agreed upon may be
extended by subsequent agreements in writing made before the expiration of the
period previously agreed upon. If a person refuses to consent to an extension of time
or a renewal thereof, the tax commissioner may make an assessment based on the
best information available. The period agreed upon in this subsection, including
extensions, expires upon issuance of an assessment by the tax commissioner.
6. Any person who consents to an extension of time for assessment of tax must be
presumed to have consented to a similar extension for refund.