NEW MEXICO’S BUSINESS LAWYERS ®

Modified Tax Enforcement Extended Through August

July 17, 2020

The New Mexico Taxation and Revenue Department announced today it is extending some modifications to its collection and enforcement efforts through August 31. The modifications were originally announced March 30 to help taxpayers facing financial difficulty because of the public health emergency.

The most severe collection activities, including new liens, seizures and injunctions, are now on hold through August 31. Also, taxpayers may be eligible for penalty and interest relief on late payments as long as they have met filing deadlines.

Other modified enforcement activities that will continue include:

  • Taxpayers on payment plans will be offered an additional deadline extension of 30 days, for a total of 90 days, and taxpayers will be encouraged to make good faith payments to prevent defaults.
  • Taxpayers undergoing field or desk audits will be offered the opportunity to request an extension or a waiver giving them more time to produce records.
  • A program that automatically garnishes state tax refunds for payment of federal tax debts remains suspended.
  • Potentially noncompliant taxpayers will be offered managed audits, a voluntary program that can result in a waiver of penalty and interest for 180 days.

Most regular enforcement and collection efforts will resume September 1.

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