N.D. Admin. Code 85-03-04-06

Current through Supplement No. 394, October, 2024

Section 85-03-04-06 - Estimation

Examinations carried out using estimation as set forth by North Dakota Century Code section 47-30.2-59 adhere to the following rules:

1. Estimation may only be used when the person subject to the examination failed to comply with North Dakota Century Code section 47-30.2-24, or when the person and the administrator mutually agree to the use of estimation. The ability of the administrator to use estimation is intended as a deterrent to the intentional or negligent destruction of records that would be used in an unclaimed property examination to identify unclaimed property.

2. A payment made based on estimation under this section does not relieve a person subject to an examination from an obligation to report and deliver property to a state in which the holder is domiciled.

3. An examiner may use estimation in an examination if:

a. The person subject to examination agrees in writing to the use of estimation as part of an examination resolution agreement; or

b. The administrator concludes that the person subject to an examination failed to comply with North Dakota Century Code section 47-30.2-24 and the administrator approves in writing the use of estimation in the examination.

4. Estimation by the administrator should reasonably approximate the amount of unclaimed property that should have been reported to North Dakota if all reports had been filed and records had been maintained as required by North Dakota Century Code chapter 47-30.2.

5. In circumstances where the administrator has concluded that the person subject to an examination failed to comply with North Dakota Century Code section 47-30.2-24 and the administrator has approved in writing the use of estimation in the examination, before the use of estimation in an examination, the administrator shall:

a. Notify the person subject to examination, in writing, that estimation is being considered because of a failure to maintain the records required by North Dakota Century Code section 47-30.2-24;

b. After considering any evidence submitted by the examiner and the person subject to examination, make a written determination that the person subject to examination has failed to maintain the records required by North Dakota Century Code section 47-30.2-24;

c. Provide an opportunity for the person subject to examination to submit written objections, including:

(1) Submitting evidence that the person subject to examination has maintained sufficient records to perform the examination for some or all of the years during the time period covered by the examination; or

(2) Proposing an estimation methodology;

d. Notify in writing the person subject to examination of:

(1) The estimation methodology to be used; and

(2) For which years during the time period covered by the examination estimation will be used.

N.D. Admin Code 85-03-04-06

Adopted by Administrative Rules Supplement 2022-384, April 2022, effective 4/1/2022.

General Authority: NDCC 47-30.2-03, 47-30.2-56

Law Implemented: NDCC 47-30.2-24, 47-30.2-55, 47-30.2-59, 47-30.2-62