New Mexico – Notices Regarding Tax Differences

SALT Report 1892 – The New Mexico Taxation and Revenue Department updated their FYI publication regarding what happens when a taxpayer reports or pays taxes in an amount that is different from the amount that the Department calculates as due. There are three types of notices a taxpayer may receive.

1)  A tax return adjustment notice showing additional tax due. This notice is not an assessment, so you cannot submit a protest in response to a tax return adjustment notice.  However, if you do not pay the tax or resolve the liability, you will receive a notice of assessment.

2)  A tax return adjustment notice showing your refund is denied. If you received an adjustment notice or a Department letter that denies a claim for refund, you may either file a protest with the Department, or you may file suit in District Court. However, by choosing one of these options means that you unconditionally waive your right to pursue the other.

3)  A notice of assessment of taxes and demand for payment.  If you receive this type of notice, you are urged to call or write your local district office to obtain additional information regarding the assessment. If you disagree with the assessment you may file a written protest with the Department, or you can pay the tax and claim a refund.  If you choose to file a protest with the Department, you do not need to pay the tax until your protest is resolved. Interest and penalties will continue to accrue during the protest period. Alternatively, you may pay the tax and file a claim for refund.

For Further Information:

New Mexico Taxation and Revenue Department – FYI-406 Your Rights Under the Tax Laws