Title 4, Economic Resources

Fraud and False Statement. Any person who: (a) Declaration Under Penalties of Perjury. Willfully makes and subscribes any return, statement, or other document, which contains or is verified by a written declaration that it is made under the penalties of perjury, and which he does…

Fraudulent Returns, Statements or Other Document. Any person who willfully delivers or discloses to the Secretary any list, return, account, statement, or other document, known by him to be fraudulent or to be false as to any material matter, shall be fined not more than $10,000 …

Failure to Obey Summons. Any person who, being duly summoned to appear to testify, or to appear and produce books, accounts, records, memoranda, or other papers, as required under sections 1892, 1893, 1894(b) of this Division, neglects to appear or to produce such books, accounts…

Attempts to Interfere with Administration of Commonwealth Tax Laws. (a) Corrupt or Forcible Interference. Whoever corruptly or by force or threats of force (including any threatening letter or communication) endeavors to intimidate or impede any officer or employee of the Commonw…

Offenses by Officers and Employees of the Commonwealth. Any officer or employee of the Commonwealth acting in connection with any tax law of the Commonwealth: (a) Who is guilty of any extortion or willful oppression under color of law; or (b) Who knowingly demands other or greate…

Extensions to File Tax Returns. (a) For purposes of the Wage and Salary Tax and the Earnings Tax, there shall be an extension to file a tax return as provided by regulations prescribed by the Secretary. (b) In the case of the Gross Revenue Tax, there shall be no extension to file…

Unauthorized Disclosure of Information. (a) Returns and Return Information. (1) CNMI Employees and Other Persons. It shall be unlawful for any officer or employee of the Commonwealth or any person described in section 6103(n) of the NMTIT (or an officer or employee of such person…

False Statements to Purchasers or Lessees Relating to Tax. Whoever in connection with the sale or lease, or offer for sale or lease, of any article, or for the purpose of making such sale or lease, makes any statement, written or oral: (a) Intended or calculated to lead any perso…

Authority to Administer Oaths and Certify; Authority to Regulate Practice. (a) Department of Finance Personnel. Every officer or employee of the Department of Finance designated by the Secretary for that purpose is authorized to administer such oaths or affirmations and to certif…

General Rule. Returns and return information shall be confidential, and except as authorized by this Article no officer or employee of the Commonwealth shall disclose any return or return information obtained by him in any manner in connection with his service as such an officer …

Definitions. Unless otherwise provided, for purposes of this Article: (a) “Return” means any tax or information return, declaration of estimated tax, certificate of entry, or claim for refund required by, or provided for or permitted under, the provisions of this Division which i…

Authorized Disclosures. (a) Except as provided in subsection (b), an officer or employee of the Commonwealth is authorized to disclose return and return information pertaining to any provision of this Division only as authorized by §6103 of the NMTIT. (b) An officer or employee o…

Civil Damages for Unauthorized Disclosure of Returns and Return Information. (a) In General. (1) Disclosure By Employee of Commonwealth. If any officer or employee of the Commonwealth knowingly, or by reason of negligence, discloses any return or return information with respect t…

Closing Agreements; Compromises. (a) Closing Agreements. The Secretary is authorized to enter into an agreement in writing with any person relating to the liability of such person (or of the person or estate for whom he acts) in respect of any Commonwealth tax for any taxable per…

Jurisdiction of Superior Court as Tax Court. In addition to such other jurisdiction as the Superior Court of the Northern Mariana Islands has with respect to the NMTIT and Chapter 7 as the Tax Court of the United States has with respect to the United States income tax, it shall a…

Interest. In addition to the penalties imposed by 4 CMC §§ 18121-18151, interest at the rate and manner provided under NMTIT § 6621 shall be imposed on all unpaid taxes, penalties, fees and charges imposed by this Division. Source: PL 3-11, § 819; repealed and reenacted by PL 14-…

Regulations. The Secretary may adopt by regulation, interpretations, procedures, and regulations issued under the U.S. Internal Revenue Code (“IRC”) as adopted under Chapter 7, that are not clearly inconsistent with this Division and that are deemed necessary for the proper admin…

Withholding of Wage and Salary Tax. (a) Withholding by the Employer. The tax imposed by section 1201 of this Division shall be collected through deductions and withholdings upon the employee’s wages, as and when paid or credited to the employee, by the employer of such employee, …

Withholding Earnings at the Source and Filing Returns. (a) Requirement of Withholding. (1) In General. A withholding tax at the maximum rate pursuant to 4 CMC § 1204 is imposed on earnings as defined by section 1202(b) of this Division for any transaction in which the amount real…

Withholding on Real Estate Transactions. (a) In General. In the case of any transfer of a CNMI real property interest, the tax imposed by section 1301 or 1202 of this Division, on the gross revenue of a transferor of such an interest shall be collected by the transferee as follow…

Regulations Requiring Returns on Magnetic Media. (a) In General. The Secretary shall prescribe regulations providing standards for determining which returns must be filed electronically or on magnetic media or in other machine-readable form. The Secretary may not require returns …

CNMI Tax Return Preparer Must Furnish Copy of Return to Taxpayer and Must Retain a Copy or List. (a) Furnishing a copy to taxpayer. Any person who is a CNMI tax return preparer with respect to any return or claim for refund shall furnish a completed copy of such return or claim t…

Authority. The Secretary of Finance or his delegate is authorized to make inquiries, determinations and assessments of all taxes (including interest, additional amounts, additions to the tax, and penalties) imposed by this Division. Source: PL 14-35, § 4 (1831).

Erroneous Prepayment Credits. If on any return or claim for refund of taxes imposed by this Division, there is an overstatement of the credit for tax withheld at the source, or of the amount paid as estimated tax, the amount so overstated which is allowed against the tax shown on…

Taxes Assessed. The Secretary shall assess all taxes determined by the Secretary as to which returns, schedules, lists or entry certificates are required to be made. Taxes and all other amounts indicated as due on returns filed by a taxpayer are deemed assessed on the date the re…

Method of Assessment. Secretary’s assessments shall be made by recording the liability of the taxpayer in the Office of the Secretary in accordance with rules or regulations prescribed by the Secretary. Upon request of the taxpayer, the Secretary shall furnish the taxpayer a copy…

Supplemental Assessments. The Secretary may, at any time within such periods as may be prescribed for assessments, make such supplemental or additional assessment whenever it is ascertained that any assessment is imperfect or incomplete. The Secretary may also make an assessment …

Assessment: No Return Filed. (a) Notice. Upon the failure of any person to make and file a return required by this Division within the time and the manner and form prescribed, or upon failure to pay any amount due, the Secretary may notify such person of such failure and demand t…

Assessment: Erroneous Return Filed. In the event any taxpayer makes and files a return, schedule or list required by this Division, and the Secretary determines that said return, schedule or list is untrue, erroneous, incomplete or incorrect in any respect, or does not otherwise …

Termination Assessment. (a) In General. If the Secretary believes that a taxpayer designs quickly to depart from the Commonwealth or to remove his property therefrom, or to conceal himself or his property therein, or to do any other act (including in the case of a corporation dis…

Notice of Assessment. If the Secretary determines that there is a deficiency in respect of any tax imposed by this Division, he is authorized to send notice of assessment to the taxpayer by certified mail or registered mail at the taxpayer’s last known address or shall otherwise …

Abatement. The Secretary is authorized to abate the unpaid portion of the assessment of any tax or any liability in respect thereof, which: (a) Is excessive in amount; (b) Is assessed after the expiration of the period of limitations properly applicable thereto; (c) Is erroneousl…

Commencement of Proceedings. (a) Civil Actions. (1) The Attorney General shall have the authority to commence civil actions to collect any taxes assessed under this Division either in the name of the Commonwealth or in the name of the Secretary. It shall not be a defense to the c…

Transferred Assets. (a) Method of Collection. The amounts of Non-NMTIT liabilities, at law or in equity, of a transferee of property shall, except as hereinafter provided in this section, be assessed, paid and collected in the same manner and subject to the same provisions and li…

Collection Authority. The Secretary shall collect the taxes imposed by this Division. If the mode or time of collecting any tax is not provided for, the Secretary may establish the same by regulations. The Secretary shall provide procedures and regulations for fair tax collection…

Notice and Demand for Tax. Unless otherwise provided, the Secretary shall, as soon as practicable after the making of an assessment of a tax pursuant to section 1831 of this Division give notice to each person liable for the unpaid tax, stating the amount and demanding payment th…

Collection of Certain Liability. (a) Collection of Debts Owed to Another Commonwealth Government Agency. (1) In General. The Secretary upon receiving certification from another Commonwealth government agency with respect to any person which has a past-due legally enforceable debt…

Agreement for Payment of Tax Liability in Installments. (a) Authorization of Agreements. The Secretary is authorized to enter into written agreements with any taxpayer under which such taxpayer is allowed to satisfy liability for payment of any tax in installment payments if the …

Extension of Time for Paying Tax. (a) General Rule. The Secretary, except as otherwise provided in this Division, may extend the time for payment of the amount of the tax shown, or required to be shown, on any return or declaration required under authority of this Division (or an…

Notice and Opportunity for Hearing Upon Filing of Notice of Lien. (a) Requirement of notice. (1) In general. The Secretary shall notify in writing the person described in section 1862 of the filing of a notice of lien under section 1864. (2) Time and method for notice. The notice…

Lien. If any person liable to pay any tax neglects or refuses to pay the same after demand, the amount (including any interest, additional amount, addition to tax, or assessable penalty, together with any costs that may accrue in addition thereto) shall be a lien in favor of the …

Period of Lien. The lien imposed by section 1862 of this Division shall arise at the time the assessment is made and shall continue until the liability for the amount so assessed (or a judgment against the taxpayer arising out of such liability) is satisfied, the assessment expir…

Place for Filing Notice. Notice of a tax lien shall be recorded with the Commonwealth Recorder’s Office. A notice of a tax lien so recorded shall be perfected as to all of a taxpayer’s real property located within the Commonwealth, to all tangible and intangible personal property…

Validity and Priority of the Tax Lien. The validity and priority of a tax lien of the Commonwealth Government in the property and income of a taxpayer for unpaid taxes, additions to tax, penalties and interest (and any cost that may accrue in addition thereto) shall, as against a…

Release of Lien; Discharge of Property. (a) Release of Lien. Subject to such regulations as the Secretary may prescribe, the Secretary shall issue a certificate of release of any lien imposed with respect to any non-NMTIT tax not later than 30 days after the day on which: (1) Lia…

Refiling of Notice. For purposes of validity and priority of the tax lien: (a) General Rule. Unless notice of lien is refiled in the manner prescribed in subsection (b) during the required filing period, such notice of lien shall be treated as filed on the date on which it is ref…