ELECTRONIC FILING (MEF)  

PROCEDURES &
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SPECIFICATIONS

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North Dakota Office of State Tax Commissioner 
Electronic Filing (MeF) Procedures and Specifications 
Tax Year 2023 – Processing Year 2024                  October 2023 
 
  Table of Contents 

 Introduction ................................................................... 1 

 Purpose ......................................................................... 1 

 ATS Testing ................................................................... 1 

 New for Tax Year 2023 .................................................... 2 

 MeF Supported Forms ...................................................... 3 

 Forms Not Supported Through MeF ................................... 5 

 PDF Attachments ............................................................ 5 

 Acceptance and Participation ............................................ 6 

 Developer’s Responsibilities .............................................. 6 

 Software Acceptance, Testing, and Approval ....................... 6 

 Acknowledgement System ............................................... 7 

 Signature Requirements .................................................. 7 

 ERO Retention Documents ............................................... 7 

 Submitting a Rejected MeF Return on Paper ....................... 8 

 Refund Options ............................................................... 8 

 Payment Options ............................................................ 9 

 Contact Information ...................................................... 10 

 Other Websites ............................................................. 10 

 MeF Reject Codes and Messages ......................... Appendix A 

                                     0 

North Dakota Office of State Tax Commissioner 
Electronic Filing (MeF) Procedures and Specifications 
Tax Year 2023 – Processing Year 2024                              October 2023 

Introduction 
The North Dakota Office of State Tax Commissioner partners with the Internal Revenue 
Service to accept electronic returns via the Modernized E-File (MeF) system. North Dakota 
accepts individual, fiduciary, partnership, subchapter S corporation, and C corporation 
returns. The transmission method is a web service using Simple Object Access Protocol 
(SOAP) with attachments messaging. The return data is formatted using Extensible 
Markup Language (XML). Authorized Electronic Return Originators (EROs) can submit 
returns to the IRS MeF system for federal and state return processing. State returns 
should be transmitted as a “linked” submission (also referred to as a Fed/State return and 
the preferred method), but “unlinked” submissions (also referred to as a State Only 
return) are also accepted. Each return must be in a separate submission, but multiple 
submissions may be contained in a single payload. Software developers must test their 
software and receive approval from the North Dakota Office of State Tax Commissioner 
prior to submitting live returns. 
 
Purpose 
This manual provides general information for software developers, transmitters, and tax 
practitioners about North Dakota’s Modernized Electronic Filing Program and is a 
supplement to the materials available on our website and in the state exchange system 
(Kiteworks). 
 
All participants in the North Dakota Federal/State e-file program are our partners, 
including: 
   Software Developers – A firm, organization, or individual who creates tax 
  preparation and transmission software for formatting returns according to  
  North Dakota’s electronic specifications. A software developer must test their 
  communication/transmission protocol and test transmissions of all returns and 
  schedules supported by their software that they intend to file. 
   Electronic Return Originators (ERO) – A firm, organization, or individual who 
  prepares or collects tax returns for electronic transmission. An ERO may be either a 
  tax professional who prepares returns for their clients or someone who creates 
  electronic returns from already prepared returns. 
   Transmitters – A firm, organization, or individual who uses approved software to 
  electronically transmit completed returns directly to the IRS. An ERO may also be a 
  Transmitter or an ERO may have an arrangement with a third-party Transmitter to 
  use their computer services. 
 
For Tax Period January 1, 2023 through December 31, 2023 
Acceptance testing begins the same day as the IRS. 
 
Prior to submitting test returns, developers must submit a letter of intent, which is only 
available via the state exchange system (Kiteworks). 
 
Software developers must first complete Internal Revenue Service testing before 
obtaining a final approval with North Dakota. The start-up date for the IRS Acceptance 
Testing may change. 
                                       1 

North Dakota Office of State Tax Commissioner 
Electronic Filing (MeF) Procedures and Specifications 
Tax Year 2023 – Processing Year 2024                                        October 2023 
 
Transmitters must be accepted by the Internal Revenue Service prior to sending data and 
testing the North Dakota acknowledgments. 
 
Electronic Return Originators are not required to perform state acceptance testing. 
 
North Dakota opens the gateway for production returns the same day as the IRS. Perfection 
periods for all MeF returns is five calendar days. See IRS MeF website for more details: 
www.irs.gov/Tax-Professionals/e-File-Providers-&-Partners/Modernized-e-File-
Program-Information. 

New for Tax Year 2023 
A reminder that starting Tax Year 2022, passthrough entities (fiduciaries, partnerships, 
and S corporations) with 10 or more owners are required to file returns and pay tax, 
electronically. All returns meeting the requirement which are not filed electronically for 
TY 2023 and future years will be rejected. If your software has allowed for the preparation 
of North Dakota passthrough return forms but hasn’t been approved for e-file, you should 
consider doing so. 

Two new forms have been created based on credits established by recent North Dakota 
Legislation. Schedule ND-1AC relates to the calculation of an adoption credit and is 
reported on Schedule ND-1TC for individual income tax returns. Schedule MCP relates to 
the calculation of a credit for contributions to a maternity home, child placing agency, or 
pregnancy help center, and is available for individual, fiduciary, partnership, S corporation, 
and corporate income tax returns. Both forms are being supported for e-file. We 
anticipate the forms to be used for only a few hundred returns for TY 2023. 

Updates are being made to the following business rules which will impact returns filed for 
TY2023: FND1-014, FND1-015, FND1-016, FND1SA-001, FND1SA-002, FSCHKP-001, 
FSCHKP-002, FSCHKS-001, FSCHKS-002, FSCHTC-001, FSCHCRIII-001, FSCHBI-001, and 
FSCHBI-002. The existing business rules: FND1-020 and FND1-021 are being deactivated. 
Three new business rules: R0000-012, FND1-022 and FND1-023 are being created. Please 
see the attached Appendix A for the updated active MeF business rules for TY 2023.  

Other changes related to the most recent legislative session include two new subtractions: 
licensed peace officer retirement benefit exclusion and military pay exclusion. These 
subtractions are available to qualified taxpayers filing Form ND-1. 

Changes to form layout and tax calculations have impacted the following forms: for 
individual income tax, Form ND-1 and Schedules ND-1SA, ND-1TC; for fiduciary, Form 38 
and Schedules BI, 38-TC, K-1; for partnership, Form 58 and Schedules K, KP, K-1; for S 
corporations, Form 60 and Schedules K, KS, K-1; for corporations, Form 40, Schedules TC 
and CR Part III. 

We continue to have issues with taxpayers and preparers mistakenly entering  
Form 1099-Misc information as Schedule K-1 information, or vice versa. Alternatively, 
North Dakota withholding reported on Schedule K-1 or Form 1099-Misc as estimated 
payments. Because both Schedule K-1 or Form 1099-Misc are required for e-file approval, 
we encourage developers to find ways for making entry of these forms more intuitive. 

                                          2 

North Dakota Office of State Tax Commissioner 
Electronic Filing (MeF) Procedures and Specifications 
Tax Year 2023 – Processing Year 2024                                             October 2023 
 
We continue to have filers trying to claim Schedule ND-1PSC (Nonprofit Private School) 
and Schedule ND-1QEC (Qualified Endowment Fund) Tax Credits, who are unable to 
because the forms are not supported by software. We strongly encourage developers to 
consider supporting for these forms. 
 
Privacy Act Notification 
This statement has been added to all forms requiring the taxpayer to disclose their  
Social Security Number (SSN) or Federal Employer Identification Number (FEIN) when 
submitting forms to our department. This statement should be presented in some format 
to your customers so they are aware of the requirement. We are unable to efficiently 
process returns/payments with a SSN of ***-**-**** and in some cases, may have to 
send them back to the taxpayer if we cannot determine how to process the form. 
 
In compliance with the Privacy Act of 1974, disclosure of a Social Security Number (SSN) 
or Federal Employer Identification Number (FEIN) on this form is required under  
N.D.C.C. §§ 57-01-15 and 57-38-56, and will be used for tax reporting, identification, 
and administration of North Dakota tax laws. Disclosure is mandatory. Failure to provide 
the SSN or FEIN may delay or prevent the processing of this form. 
 
MeF Supported Forms  
The following forms and schedules are supported by the North Dakota MeF program. All 
state adjustments and tax credits not requiring a separate state schedule can be e-filed. 
Not all schedules are required to be supported. (* Designates a required form/schedule) 

                            Individual Income Tax (ND-1) 
 *Form ND-1                 Individual Income Tax Return 
   Schedule ND-1CR          Credit for Income Tax Paid to Another State 
   Schedule ND-1FA          Three-Year Averaging Method for Elected Farm Income 
   Schedule ND-1NR          Non-resident and Par-year Resident Schedule 
   Schedule ND-1SA          Statutory Adjustments 
   Schedule ND-1TC          Tax Credits 
   Schedule ND-1PSC         Nonprofit Private School Tax Credits for Individuals 
   Schedule ME              Credit For Wages Paid to Mobilized Employee 
   Schedule ND-1CS          Calculation of Tax on Proceeds from Sale of Income Tax Credit 
   Schedule ND-1FC          Family Member Care Credit 
   Schedule ND-1PG          Planned Gift Tax Credit 
   Schedule ND-1QEC         Qualified Endowment Fund Tax Credit 
   Schedule ND-1AC          Adoption Credit 
                            Contributions to a Maternity Home, Child Placing Agency, or 
   Schedule MCP             Pregnancy Help Center 
 *Schedule ND-1UT           Underpayment of Estimated Income Tax  
 *Schedule ND K-1 Received  Share of North Dakota Withholding from a Pass-Through Entity 
   Capital Gain Exclusion 
 Worksheet                  Optional worksheet which applies to Form ND-1, line 8 
   Marriage Penalty Credit 
 Worksheet                  Optional worksheet which applies to Form ND-1, line 22 
   Schedule RZ              Schedule of Renaissance Zone Income Exemption and Tax Credit 
   Tax Paid to Other States TSOP schema info in IndividualReturnND1.xsd 
 *StateIndividual\IRSForms  IRSW2.xsd, IRS1099R.xsd, State1099Misc.xsd 
 
                                            3 

North Dakota Office of State Tax Commissioner 
Electronic Filing (MeF) Procedures and Specifications 
Tax Year 2023 – Processing Year 2024                              October 2023 
 
MeF Supported Forms – Continued 
 
                          Corporation Income Tax (Form 40) 
 *Form 40                  Corporate Income Tax Return 
 *Schedule SA              Statutory Adjustments 
                           Apportionment Factor for Corporations Not Filing a 
 *Schedule FACT            Consolidated State Return 
   Schedule WE             Water’s Edge Method Income Schedule 
 *Schedule TC              Tax Credits 
   Schedule WW             Combined Report Method Income Schedule 
                           Computation of Tax Due for Corporations Included in a 
 *Schedule CR (Parts 1-3)  North Dakota Consolidated Return 
 *Form 40-UT               Underpayment of Estimated Income Tax 
                           Schedule of Renaissance Zone Income Exemption and Tax 
   Schedule RZ             Credit 
                           Contributions to a Maternity Home, Child Placing Agency, 
   Schedule MCP            or Pregnancy Help Center 
 *StateBusiness\IRSForms   State1099Misc.xsd 
                          S Corporation Income Tax (Form 60) 
 *Form 60                  S Corporation Income Tax Return 
 *Schedule FACT            Calculation of North Dakota Apportionment Factor 
   Schedule BG             Tax on Excess Passive Income and Built-In Gains 
                           Total North Dakota Adjustments, Credits, and Other Items 
 *Schedule K               Distributable to Shareholders 
 *Schedule KS              Shareholder Information 
                           Shareholder’s Share of North Dakota Income (Loss), 
 *Schedule K-1 (Form 60)   Deductions, Adjustments, Credits, and Other Items 
                           Schedule of Renaissance Zone Income Exemption and Tax 
   Schedule RZ             Credit 
                           Contributions to a Maternity Home, Child Placing Agency, 
   Schedule MCP            or Pregnancy Help Center 
 *StateBusiness\IRSForms   State1099Misc.xsd 
 *Schedule ND K-1 Received Received from passthrough entity (SchNDK1Received.xsd) 
                          Partnership Income Tax (Form 58) 
 *Form 58                  Partnership Income Tax Return 
 *Schedule FACT            Calculation of North Dakota Apportionment Factor 
                           Total North Dakota Adjustments, Credits, and Other Items 
 *Schedule K               Distributable to Partners 
 *Schedule KP              Partner Information 
                           Partner’s Share of North Dakota Income (Loss), 
 *Schedule K-1 (Form 58)   Deductions, Adjustments, Credits, and Other Items 
                           Schedule of Renaissance Zone Income Exemption and Tax 
   Schedule RZ             Credit 
                           Contributions to a Maternity Home, Child Placing Agency, 
   Schedule MCP            or Pregnancy Help Center 
 *StateBusiness\IRSForms   State1099Misc.xsd 
 *Schedule ND K-1 Received Received from passthrough entity (SchNDK1Received.xsd) 
 
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North Dakota Office of State Tax Commissioner 
Electronic Filing (MeF) Procedures and Specifications 
Tax Year 2023 – Processing Year 2024                                     October 2023 
 
MeF Supported Forms – Continued 
 
                             Fiduciary Income Tax (Form 38) 
 *Form 38                    Fiduciary Income Tax Return 
 *Tax Compensation Schedule  Tax on Fiduciary’s Table Income 
 *Schedule BI                Beneficiary Information 
   Schedule CR               Credit for Income Tax Paid to Another State 
   Schedule 38-TC            Tax Credits 
                             Calculation of Interest on Underpayment or Late Payment of 
 *Schedule 38-UT             Estimated Tax for Estates and Trusts 
                             Beneficiary’s Share of North Dakota Income (Loss), Deductions, 
 *Schedule K-1 (Form 38)     Adjustments, Credits, and Other Items 
   Schedule RZ               Schedule of Renaissance Zone Income Exemption and Tax Credit 
                             Contributions to a Maternity Home, Child Placing Agency, or 
   Schedule MCP              Pregnancy Help Center 
   StateEstateTrust\IRSForms IRSW2.xsd, State1099Misc.xsd 
 *Schedule ND K-1 Received   Received from passthrough entity (SchNDK1Received.xsd) 
 
Forms Not Supported Through MeF 
Due to the very limited use of the forms listed below, schemas have not been developed 
to support them in the MeF program. Taxpayers may still take the credits associated with 
these schedules, and attach a PDF of the schedule to the submission. To avoid delays in 
processing returns, these forms should be included when the return is submitted. If we do 
not have the required documentation, we may disallow the credit or send a request for 
additional information. 
 
 Corporation, S-Corporation, Partnership, Fiduciary 
    Schedule ME 
    Schedule QEC 
 
PDF Attachments 
North Dakota MeF infrastructure provides the ability for the taxpayer or tax preparer to 
include a PDF attachment with the e-filed return. This functionality should be used to 
provide supporting documentation for amounts claimed on the return for which there is no 
place to enter the data. For TY 2023, all professional software products must provide the 
ability to attach PDFs. Suggested uses for PDF attachments: 
   Attaching forms or schedules not supported by MeF. 
   Other states’ tax returns to support the credit for tax paid to another state. 
   Military Title 10 orders to support the National Guard/Reserve member income 
  exclusion. 
   Documentation to support any other addition, deduction, or tax credit claimed on the 
  form. 
 
*Note: North Dakota does not require any attachments for electronic returns, attaching 
supporting documentation as noted in the instructions will avoid delays in processing the 
return and reduce the chance of our office having to request additional information from 
the taxpayer. 
                                         5 

North Dakota Office of State Tax Commissioner 
Electronic Filing (MeF) Procedures and Specifications 
Tax Year 2023 – Processing Year 2024                                        October 2023 
 
Acceptance and Participation 
North Dakota only accepts electronic returns from IRS approved software developers. To 
participate in North Dakota’s MeF program, software developers must: 
   Register with our office, prior to submitting test files. In accordance with the FTA 
  security summit rules, the letter of intent needed to register is only available in the 
  state exchange system (Kiteworks). 
   Submit your letter of intent to our office using one of the two methods below: 
  1.  Email to taxmef@nd.gov 
  2.  Fax to 701-328-0352 
   
Developer’s Responsibilities 
Developed software must: 
   Adhere to all federal and state procedures, requirements, and specifications listed in 
  the letter of intent. 
   Pass all relevant tests prescribed by the North Dakota Office of State Tax Commissioner. 
  This includes supporting all required forms, schedules, and functionality (ex. binary attachments) 
   Be developed in accordance with statutory requirements and return preparation 
  instructions obtained from the North Dakota Office of State Tax Commissioner. 
   Provide accurate North Dakota tax returns in the correct electronic format. 
   Support the substitute form (printable version) for all supported schemas. 
   Provide schema validation, verification, and error detection to prevent transmission of 
  incomplete or invalid return data. 
   Clearly state which forms/schedules and filing scenarios are supported. 
   Have the ability to update their software as needed throughout the filing season for 
  issues that may not be evident during testing. Customers should receive notification in a 
  timely manner to mitigate any outstanding issues. 
   Validate the submission prior to submitting it. North Dakota should not be seeing 
  schema rejection errors in production. 
 
Software Acceptance, Testing, and Approval 
   North Dakota follows the same dates and deadlines as the IRS for testing purposes.  
   Test scenarios, xml schemas, and all other relevant documentation are available on 
  our website. 
   Email taxmef@nd.gov when sending test returns. Include your company name, 
  software product name, NACTP software ID, ETIN and the Submission IDs associated 
  with the test returns. For tracking purposes, the company/software name and the tax 
  type being tested should be listed in the “subject” line of the e-mail. 
   The state manifest must include the following information: 
     GovernmentCode = NDST 
     SubmissionType = FormND1 or Form60 or Form58 or Form40 or Form38 
     SubmissionCategory = IND or PART         or CORP or ESTRST 

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North Dakota Office of State Tax Commissioner 
Electronic Filing (MeF) Procedures and Specifications 
Tax Year 2023 – Processing Year 2024                                 October 2023 

   Please use your four-digit NACTP Vendor ID in the Software ID field on the state 
  return. This allows us to easily identify the software used to prepare and submit 
  the return. We will reject the returns if a number other than your NACTP vendor 
  ID is used. If you are not registered with NACTP, please use this link to complete 
  the process: www.nactp.org  
   Send data elements only if they contain values, unless the fields are required. 
   We will generate acknowledgements on all test returns. However, an “accepted” ACK 
  does not mean we have approved your software for release. You must receive a 
  software approval e-mail from the Office of State Tax Commissioner prior to 
  releasing your software. 
   Software vendors can self-test their software by sending additional returns through 
  the system. Unless we receive an email with the required elements as noted above, 
  we will not review these returns. 
 
Acknowledgement System 
   The North Dakota Office of State Tax Commissioner will generate an acknowledgement 
  of acceptance or rejection for all returns received. The acknowledgement record is 
  created using standards agreed upon by the IRS, state agencies, transmitters, and 
  software developers.  
   Allow two days to receive the acknowledgment from North Dakota.  
   North Dakota will reject returns missing required schedules or having mismatched 
  data.  
   Appendix A contains a complete list of business rules and associated reject codes. 
   Returns may be corrected and re-transmitted as long as the MeF and the software 
  product being used supports the missing schedule or form. 
   Per the IRS perfection period – returns which have been rejected have a five-day 
  period, 10 days for business returns, to be corrected and resubmitted, and still be 
  considered timely. For extensions, there is a five-day perfection period for all tax 
  types. 
 
Signature Requirements 
The IRS obtains the taxpayer’s signature by requiring the taxpayer to select a PIN 
(Federal Form 8879). North Dakota recognizes the federal PIN as the signature for the 
North Dakota return. If the return must be submitted as an unlinked (state only) return, a 
self-selected PIN may be used. 
 
ERO Retention Documents 
When an ERO files an electronic return, (in addition to attaching any necessary PDFs to 
the return) the ERO must also retain the following documents as they may apply to the 
return: 
   State copies of Forms W-2, W-2G, 1099, and North Dakota Schedule K-1s – anything 
  with state income tax withholding identified. 
   Copy of the other state’s return for a credit claimed on Schedule ND-1CR. 
   Copy of the supporting statements identifying interest from U.S. obligations. 

                                     7 

North Dakota Office of State Tax Commissioner 
Electronic Filing (MeF) Procedures and Specifications 
Tax Year 2023 – Processing Year 2024                                     October 2023 
 
   Copy of RRB-1099 or RRB-1099R. 
   Copy of the statement supporting the new or expanding business income exemption. 
   National Guard/Reserve member’s mobilization orders. 
   Copy of the credit certificate from North Dakota Housing Finance Agency. 
   Copy of the supporting statement for the human organ donor expense deduction. 
   Copy of the Ag Commodity or Seed Capital Investment reporting form. 
   Copy of the biodiesel fuel supplier/seller statement. 
   Copy of the statement from the entity when claiming a gain or loss from an 
    S corporation that elected to be taxed as a C corporation for North Dakota income 
  tax purposes. 
   Copy of the local property tax clearance. 
   Copy of letter, cancelled checks or other documents to support nonprofit private 
  school tax credit on Schedule ND-1PSC. 
   Other forms, schedules, or statements to explain information stated. 
  
Submitting a Rejected MeF Return on Paper  
If the state return is rejected and cannot be retransmitted electronically, the following 
documents should be submitted to our office: 
   Copy of the signed Federal Form 8879, 8879-F, 8879-PE, 8879-S, or 8879-C. 
   Form ND-1, 38, 58, 60, or 40 and any supporting North Dakota forms and schedules. 
  On the taxpayer’s signature line of Form ND-1, 38, 58, 60, or 40, please write, “See 
  attached Form 8879.” 
   The federal return and any supporting federal forms and schedules. 
   Copy of all Forms W-2, W-2G, 1099, and Schedule K-1s that indicate North Dakota 
  withholding. 
   Form ND-1PRV if the return has a balance due. 
   Any other documentation needed to support the state return. 
  
Refund Options 
Taxpayers have four options when their North Dakota return shows an overpayment of 
taxes. They may elect to have their overpayment: 
 1.  Direct deposited to their financial institution account (the preferred method); 
 2.  Sent as a paper check; 
 3.  Applied as an estimated payment to next year’s tax liability; 
 4.  Donated to the Watchable Wildlife Fund, Trees for North Dakota Program Trust 
  Fund and/or Veteran’s Postwar Fund. 
 
We do not provide time frames as to how long it will take to process returns. If our 
department encounters any errors or requires additional inspection when processing the 
tax return, the refund will be delayed. 

                                        8 

North Dakota Office of State Tax Commissioner 
Electronic Filing (MeF) Procedures and Specifications 
Tax Year 2023 – Processing Year 2024                                    October 2023 
 
A refund may also be delayed, or denied, if the taxpayer owes past due North Dakota 
taxes, fines, or debts to other state agencies (i.e., child support, student loans, etc.). The 
Office of State Tax Commissioner is required by law to offset the income tax refund to any 
of these debts. In these cases, a letter will be mailed to the taxpayer letting them know 
why their refund was offset. 
 
Taxpayers can check the status of their refund at www.tax.nd.gov/refund. Appropriate 
messaging will be provided if there is a delay due to error, offset or if additional 
information was requested. 
 
Payment Options 
Taxpayers have various options to remit their balance due. They may elect to: 
 1.  Make an electronic payment directly from their checking or savings account  
 (aka Direct Debit or ACH Debit). There is no fee for this payment option, when 
 submitting the banking information with the MeF return. This is also the method for 
 submitting estimated payments. These options are not allowed for paper returns. 
 2.  Visit our Taxpayer Access Point at www.tax.nd.gov/payment to set up a payment. 
 Electronic check payments can be made for free, or debit/credit card payments can be 
 made through FIS Corporation for a fee. This application also includes options for 
 paying other taxes which are not part of MeF. 
 3.  Mail in a check or money order with the appropriate payment voucher:  
 Individual – Form ND-1V, Partnership – Form 58-EPV, S Corporation – Form 60-EPV, 
 Fiduciary – Form 38-EPV, Corporation – Form 40-EPV. 
 4.  Corporation, S Corporations, Fiduciaries and Partnerships have an additional option 
 to remit payment using ACH Credit. Information for ACH credit procedures can be 
 found on our website at: 
 www.tax.nd.gov/sites/www/files/documents/forms/misc-forms/ach-credit.pdf. 

                                        9 

North Dakota Office of State Tax Commissioner 
Electronic Filing (MeF) Procedures and Specifications 
Tax Year 2023 – Processing Year 2024                                  October 2023 
  
Contact Information 

                        Contact Information 
 Subject              Contact Person            Phone     Fax            Email 
General Questions                                                     taxmef@nd.gov 
ATS Testing & 
Registration          Cindy Roehrich       701-328-2049 701-328-0352  taxmef@nd.gov 
Individual Income Tax 
Questions             Donna Kohler         701-328-3102  701-328-0352 taxmef@nd.gov 
Business Income Tax 
Questions             Kris Snow            701-328-3430  701-328-0352 taxmef@nd.gov 
Technical Questions   Christi Tweeten      701-328-3348  701-328-0352 taxmef@nd.gov 
 
Other Websites 

                                Other Websites 
                                                
                      Subject                                 Website 
North Dakota MeF                                          tax.nd.gov/mef 
                                                                          
North Dakota Software Developer (2D/forms)                tax.nd.gov/developer
North Dakota Office of State Tax Commissioner             tax.nd.gov 
 
                                           10 

Severity Reject Reject Reject Reject Reject Alert Reject Reject Reject Reject Reject Reject Reject

Error Category Incorrect Data Missing Data Incorrect Data Incorrect Data Incorrect Data Missing Data Incorrect Data Missing Data Incorrect Data Incorrect Data

Applies to all MeF filings

APPENDIX A - TY 2023 MeF Business Rules
Rule Text Schema validation error.  The electronic return does not match the format defined by North Dakota. Duplicate return.  North Dakota has already received and accepted a return for the same filing period.  For IIT, PRT, SCO, and FID - this will only apply on non Amended Returns An unauthorized software vendor was used to submit the state return.  Please contact your software provider. We are unable to process your electronic return payment due to an invalid routing number.  Please verify you have entered the correct bank routing number and bank account number prior to resubmitting the return. Tax Period Begin and End Dates are required. We are unable to process your direct deposit request with the information you provided on your return.  A paper check will be issued to the address provided on the return. We are unable to process one or more of your electronic estimated payments due to an invalid routing number.  Please verify you have entered the correct bank routing number and bank account number prior to resubmitting the return. The requested date of one or more of your electronic payments is outside of the valid date range.  Please verify you have entered the correct dates for your return payment and, if applicable, any estimated payments prior to resubmitting the return. The Employer's State ID Number (Box 15), State Wages (Box 16), and State Income Tax (Box 17) are required on Form W-2 and Form W-2G. North Dakota only accepts returns for the current year and the previous two tax years.  All other returns must be filed on paper. The Payer's Federal ID Number is required on all Form 1099s. W-2 or 1099 exists and the Payer's Federal ID or Employer State ID contains all 9's or all 0's. The banking information submitted with this return is associated with a general Wells Fargo wire transfer account. A refund issued to this account will be rejected, requiring your refund to be reissued as a paper check. Please correct the banking information entered on your return to your proper checking or savings account number.

Line #

Rule Number X0000-005 R0000-001 R0000-002 R0000-003 R0000-004 R0000-005 R0000-006 R0000-007 R0000-008 R0000-009 R0000-010 R0000-011 R0000-012

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Individual Income Tax

Rule Text Schedule ND-1NR is required when filing Form 1040-NR. When the filing status is married filing jointly, the spouse's first and last name are required. The filing status (single, married filing jointly, etc) must be the same on both the state and federal returns.       The Spouse SSN or ITIN is required when the filing status is married filing jointly. SSNs or ITINs must be the same on both the state and federal returns. Federal adjusted gross income on Form ND-1, line 1a must equal federal adjusted gross income on the federal return.  Federal taxable income on Form ND-1, line 1b must equal federal taxable income on the federal return, when the amount on the federal return is greater than $0. Total subtractions from Schedule ND-1SA must equal Form ND-1, line 16. Schedule ND-1SA is required when Form ND-1, line 16 is greater than $0. When the state tax computation on Form ND-1, line 20 does not equal the tax computed per the North Dakota tax tables or rate schedule for the filing status claimed, either Schedule ND-1NR or Schedule ND-1FA is required. The sum of total credit(s) claimed on Schedule(s) ND-1CR must equal Form ND-1, line 21.  If a credit is Data Mismatch being claimed for more than one state, a Schedule ND-1CR is required to be completed for each state. Schedule ND-1CR is required when Form ND-1, line 21 is greater than $0.  If a credit is being claimed for more than one state, a Schedule ND-1CR is required to be completed for each state. To be eligible for the marriage penalty credit, your filing status must be married filing jointly. To be eligible for the marriage penalty credit, your North Dakota taxable income on Form ND-1, line 18 must be greater than $74,862. The marriage penalty credit for married filing jointly  filers cannot exceed $287. The total credit amount claimed on Schedule ND-1TC must equal Form ND-1, line 23. Schedule ND-1TC is required when Form ND-1, line 23 is greater than $0. Total North Dakota withholding on Form ND-1, line 26 must equal the sum of North Dakota withholding from all Forms W-2s, 1099s, and North Dakota Schedule K-1s submitted with the return. Withholding statements (Forms W-2s, 1099s, and North Dakota Schedule K-1s) are required when Form ND-1, line 26 (state withholding) is greater than $0. The total additions from Shcedule ND-1SA must equal Form ND-1, line 3.

Line # Line A Line A Line 1a Line 1b Line 16 Line 16 Line 20 Line 21 Line 21 Line 22 Line 22 Line 22 Line 23 Line 23 Line 26 Line 26 Line 3

Rule Number FND1-000 FND1-001 FND1-002 FND1-003 FND1-004 FND1-006 FND1-007 FND1-008 FND1-009 FND1-010 FND1-011 FND1-012 FND1-013 FND1-014 FND1-015 FND1-016 FND1-017 FND1-018 FND1-019 FND1-022

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Individual Income Tax (cont.)

Rule Text Schedule ND-1SA is required when Form ND-1, line 3 is greater than $0. Full-year nonresidents must provide the name of the other state in which they reside. Part-year residents must provide the name of the other state in which they resided. Part-year residents must provide the dates during which they resided in North Dakota. If Schedule ND-1NR is used to calculate the tax, Schedule ND-1NR, line 23 must equal Form ND-1, line Data Mismatch 20. The total credit claimed on Schedule RZ must equal Schedule ND-1TC, line 2. Schedule RZ is required when Schedule ND-1TC, line 2 is greater than $0. The maximum credit for contributions made directly to qualified primary schools is $2,500 The maximum credit for contributions made directly to qualified high schools is $2,500 The maximum credit for contributions made directly to qualified colleges is $2,500 The total RZ exemption claimed on Schedule RZ must equal Schedule ND-1SA, line 4. Schedule RZ is required when Schedule ND-1SA, line 4 is greater than $0. If Schedule ND-1CR is used and you are a full year resident (if married filing jointly, both you and your  Data Mismatch spouse must be full year residents), the sum of the credit(s) calculated on Schedule(s) ND-1CR, Line 7 must equal Form ND-1, line 21. If Schedule ND-1CR is used and you are a part-year resident (or if married filing jointly, your spouse is a part-year resident), the sum of the credit(s) calculated on Schedule(s) ND-1CR, Line 11 must equal Form ND-1, line 21. If Schedule ND-1FA is used to calculate the tax and you are a full year resident (if married filing jointly, both you and your spouse must be full year residents), the tax calculated on Schedule ND-1FA, line 23 must equal Form ND-1, line 20. If Schedule ND-1FA is used to calculate the tax and you are required to use Schedule ND-1NR, the tax calculated on Schedule ND-1FA, line 23 must equal Schedule ND-1NR, line 23. When the total interest on Schedule ND-1UT is greater than zero, it must equal Form ND-1, line 37.

Line # Line 3 Header Header Header Line 21 Line 2 Line 2 Line 18 Line 19 Line 20 Line 1 Line 1 Line 7 Line 11 Line 23 Line 23 Line 39

Rule Number FND1-023 FND1NR-001 FND1NR-002 FND1NR-003 FND1NR-004 FND1TC-001 FND1TC-002 FND1TC-003 FND1TC-003 FND1TC-003 FND1SA-001 FND1SA-002 FND1CR-001 FND1CR-002 FND1FA-001 FND1FA-002 FND1UT-001

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Partnership Income Tax

Rule Text The FEIN (Federal Tax ID) on the state return must match the FEIN on the federal return. Income tax withheld on Form 58, line 1 must equal the sum of all North Dakota withholding provided on line 3 of the Schedule(s) KP. Composite income tax on Form 58, line 2 must equal the sum of all composite tax provided on line 4 of the Schedule(s) KP. Total North Dakota withholding on Form 58, line 4 must equal the sum of North Dakota withholding  from all 1099-MISC and North Dakota Schedule K-1s submitted with the return. Withholding statements (1099-MISC, North Dakota Schedule K-1) are required when Form 58, line 4 is greater than $0. Schedule RZ is required when Schedule K, line 4 is greater than $0. The RZ exemption claimed on Schedule K, line 4 must equal Schedule RZ, line 1c, part 7. Schedule RZ is required when Schedule K, line 7a is greater than $0. The RZ credit claimed on Schedule K, line 7a must equal Schedule RZ, line 4, part 7. Schedule RZ is required when Schedule K, line 7b is greater than $0. The RZ credit claimed on Schedule K, line 7b must equal Schedule RZ, line 5, part 7. Schedule RZ is required when Schedule K, line 7c is greater than $0. The RZ Credit claimed on Schedule K, line 7c must equal Schedule RZ, line 6, part 7. The sum of withholding claimed on Line 41 for all North Dakota Schedules K-1 must equal the sum of Line 3 on the Schedule(s) KP. The sum of composite income tax claimed on Line 42 for all North Dakota Schedules K-1 must equal the sum of Line 4 on the Schedule(s) KP.

Line # Line C Line 1 Line 2 Line 4 Line 4 Line 4a Line 4a Line 7a Line 7a Line 7b Line 7b Line 7c Line 7c Line 3 Line 4

Rule Number F58-001 F58-002 F58-003 F58-004 F58-005 FSCHK-001 FSCHK-002 FSCHK-003 FSCHK-004 FSCHK-005 FSCHK-006 FSCHK-007 FSCHK-008 FSCHKP-001 FSCHKP-002

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S-Corporation Income Tax

Rule Text The FEIN (Federal Tax ID) on the state return must match the FEIN on the federal return. The tax on excess net passive income and built-in gains must equal Schedule BG, line 8. Income tax withheld on Form 60, line 2 must equal the sum of all North Dakota withholding provided on Line 3 of the Schedule(s) KS. Composite income tax on Form 60, line 3 must equal the sum of all composite tax provided on Line 4 on Schedule(s) KS. Total North Dakota withholding on Form 60, line 5 must equal the sum of North Dakota withholding  from all 1099-MISC and North Dakota Schedule K-1s submitted with the return. Withholding statements (1099-MISC, North Dakota Schedule K-1) are required when Form 60, line 5 is greater than $0. Schedule RZ is required when Schedule K, line 2 is greater than $0. The RZ exemption claimed on Schedule K, line 2 must equal Schedule RZ, line 1c, part 7. Schedule RZ is required when Schedule K, line 4a is greater than $0. The RZ credit claimed on Schedule K, line 4a must equal Schedule RZ, line 4, part 7. Schedule RZ is required when Schedule K, line 4b is greater than $0. The RZ credit claimed on Schedule K, line 4b must equal Schedule RZ, line 5, part 7. Schedule RZ is required when Schedule K, line 4c is greater than $0. The RZ credit claimed on Schedule K, line 4c must equal Schedule RZ, line 6, part 7. The sum of withholding claimed on Line 37 for all North Dakota Schedules K-1 must equal the sum of Line 3 on Schedule(s) KS. The sum of composite income tax claimed on Line 38 for all North Dakota Schedules K-1 must equal the sum of Line 4 on Schedule(s) KS.

Line # Line C Line 1 Line 2 Line 3 Line 5 Line 5 Line 2a Line 2a Line 4a Line 4a Line 4b Line 4b Line 4c Line 4c Line 3 Line 4

Rule Number F60-001 F60-002 F60-003 F60-004 F60-005 F60-006 FSCHK-001 FSCHK-002 FSCHK-003 FSCHK-004 FSCHK-005 FSCHK-006 FSCHK-007 FSCHK-008 FSCHKS-001 FSCHKS-002

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Corporate Income Tax

Rule Text For filing methods b1 and c1, Schedule CR must be completed. For filing methods c and c1, income must equal Schedule WE, line 2. For filing methods b and b1, income must equal Schedule WW, line 5. Total additions on Form 40, line 2 must equal Schedule SA, line 7. Total subtractions on Form 40, line 3 must equal Schedule SA, line 16. For filing methods a, b, and c, if the apportionment factor does not equal 1.000000 or 0, Schedule FACT must be completed. For filing methods a, b, and c, if the apportionment factor does not equal 1.000000 or 0, Line 5 must equal Schedule FACT, line 14 or line 16. For filing methods b1 and c1, Line 5 must equal Schedule CR, part II, line 14a or 16a. If the Renaissance Zone Income Exemption is claimed, Schedule RZ must be completed. For filing methods b1 and c1, the net income tax liability must equal Schedule CR, Part 1, line 20a. Total North Dakota withholding on Form 40, line 22 must equal the sum of North Dakota withholding from all Forms 1099-MISC submitted with the return. Withholding statements (Forms 1099-MISC) are required when Form 40, line 22 is greater than $0. For filing methods b1 and c1, the aggregate of all columns line 14 or 16 (SFW) must equal the total factor on lines 14a or 16a (SFW). If this corporation files its federal income tax return as a member of a consolidated group, the FEIN of Missing Data this group is required. Schedule RZ is required when Schedule TC, line 8 is greater than $0. Schedule RZ is required when Schedule CR, part III, line 8 is greater than $0.

Line # Line 1 Line 1 Line 1 Line 2 Line 3 Line 5 Line 5 Line 5 Line 10 Line 20 Line 22 Line 22 Lines 14a, 16a Question 7 Line 9 Line 9

Rule Number F40-001 F40-002 F40-003 F40-004 F40-005 F40-006 F40-007 F40-008 F40-009 F40-010 F40-011 F40-012 F40-013 FSCHSA-001 FSCHTC-001 FSCHCRIII-001

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Fiduciary Income Tax

Rule Text The FEIN (Federal Tax ID) on the state return must match the FEIN on the federal return. Tax on fiduciary's North Dakota taxable income must equal the amount on the Tax Computation Schedule, Part 1, line 8. The sum of the total credit(s) claimed on Schedule(s) CR must equal Form 38, line 2.  If a credit is being claimed for more than one state, a Schedule CR is required to be completed for each state. Schedule CR is required when Form 38, line 2 is greater than $0.  If a credit is being claimed for more than one state, a Schedule CR is required to be completed for each state. Income tax withheld on Form 38, line 5 must equal the sum of all North Dakota withholding provided on Line 3 of the Schedule(s) BI. Composite income tax on Form 38, line 6 must equal the sum of all composite tax provided on Line 4 on Schedule(s) BI. Total North Dakota withholding on Form 38, line 8 must equal the sum of North Dakota withholding from all Forms W-2, W-2G, 1099G, 1099R, 1099-MISC, 1099-INT, 1099-DIV, 1099-OID, 1099-B, 1099- NEC and North Dakota Schedule K-1s submitted with the return. Withholding statements (Forms W-2, W-2G, 1099G, 1099R, 1099-MISC, 1099-INT, 1099-DIV, 1099- OID, 1099-B, 1099-NEC, or North Dakota Schedule K-1s) are required when Form 38, line 8 (state withholding) is greater than $0. The total credit amount claimed on Schedule 38-TC must equal Form 38, line 3. Schedule 38-TC is required when Form 38, line 3 is greater than $0. The sum of withholding claimed on Line 36 for all North Dakota Schedules K-1 must equal the sum of Line 3 on Schedule(s) BI. The sum of composite income tax claimed on Line 37 for all North Dakota Schedules K-1 must equal the sum of Line 4 on Schedule(s) BI.

Line # Line C Line 1 Line 2 Line 2 Line 5 Line 6 Line 8 Line 8 Line 3 Line 3 Line 3 Line 4

Rule Number F38-001 F38-002 F38-003 F38-004 F38-005 F38-006 F38-007 F38-008 F38-009 F38-010 FSCHBI-001 FSCHBI-002