New Mexico – Taxpayer Rights During an Audit or Protest

SALT Report 3096 – The New Mexico Taxation and Revenue Department revised a publication that discusses the rights a taxpayer possesses when under audit or when protesting an assessment.  In New Mexico, taxpayers are protected by an extensive bill of rights that guarantees privacy and confidentiality.  This publication provides an overview of these rights and explains in detail what a taxpayer can expect when selected for an audit, or is issued an assessment of tax due or an income tax return adjustment notice.

Generally, New Mexico law provides taxpayers with the following rights:

  • You have the right to representation at any time during your interactions with the Department
  • You have the right to have audits, inspections of records, and meetings conducted at a reasonable time and place
  • You have the right to simple, non-technical information that explains the procedures, remedies and rights during an audit, protest or collection proceedings
  • You have the right to receive an explanation for refund denials and the reasons for audit findings or assessments, including the amount of tax, interest or penalty due
  • You have the right to request a review through formal or informal proceedings of findings or unfavorable decisions arising from determinations during audit or protest procedures
  • You have the right to have your tax information kept confidential unless otherwise specified by law
  • You have the right to an abatement of an assessment of taxes that have been incorrectly, erroneously or illegally made. If the Secretary doubts that you owe what the Department claims you owe, you also have the right to seek a compromise
  • You have the right to be informed of the consequences if a tax assessment is not paid, secured, protested, or provided within 90 days. If you are a delinquent taxpayer, you have the right to a notice of the collection actions that allow the Department to sell or seize your property
  • After a jeopardy assessment, you have at least five days to review the jeopardy assessment before paying the tax or before providing security for the tax
  • If qualified, you may pay your tax obligations through an installment payment agreement that will take into account both your financial condition and the best interests of the state
  • You have the right to protest the Department’s failure to grant or deny a refund claim if 120 days have passed since you first filed the refund claim, and if you protest the inaction before an additional 90 days have passed

Lastly, the publication addresses the differences between a field audit and a desk audit, how to minimize potential problems, refund interceptions, and how to request a conference or hearing.

For Further Information

New Mexico Taxation and Revenue Department – FYI-400, Tax Audits and Protest Procedures