New Mexico – Publication Addresses Differences in Reported Tax Amounts

SALT Report 2846 – The New Mexico Taxation and Revenue Department updated a publication that describes what happens when a taxpayer reports or pays tax in an amount that is different from the amount that the Department calculates is due. If this occurs, the taxpayer will receive one of the following notices:

  • A tax return adjustment notice indicating that additional tax is due,
  • A tax return adjustment notice that reduces or eliminates an income tax refund, or
  • A notice of assessment of taxes and a demand for payment

If you receive a tax return adjustment notice for additional taxes due you should contact your local district tax office immediately, if you disagree with the notice.  Because, this type of notice is not an assessment, you cannot file a protest in response to the tax return adjustment notice. However, if you do not pay the tax or resolve the liability, you will receive a notice of assessment, to which you can protest.

If you receive a tax return adjustment notice that denies a claim for refund, you may file a protest with the Department, or in the Santa Fe District Court within 90 days of the mailing of the notice. However, choosing one of these options means that you unconditionally waive your right to the other. Additionally, if you do not file a protest or bring suit within 90 days the Department’s decision will become final.

If you receive a notice of assessment of taxes from the Department, you should call your local district office to obtain additional information regarding the assessment.  If you disagree with the assessment and would like to schedule an administrative hearing, you should file a written protest with the Department.

If you choose to file a protest, you do not need to pay the tax until the protest is resolved. However, interest and penalties will continue to accrue during the protest period.  If you would like to avoid the additional interest and penalties, you should 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