FYI-402

For Your Information

Tax Information/Policy Office ¨ P.O. Box 630 ¨ Santa Fe, New Mexico 87504-0630

 

TAXPAYER REMEDIES

 

 

This FYI provides information on how you can dispute a tax liability or other administrative action taken against you by the Taxation and Revenue Department.

 

The New Mexico Tax Administration Act provides two formal remedies for resolving such disputes. Both are described in this publication. It has been the Department's experience, however, that taxpayers are often able to resolve their tax disputes without resorting to these formal remedies. You may wish to call your district office (listed in FOR FURTHER ASSISTANCE) to discuss your situation before making your decision on how to proceed. Please note, however, that if you fail to exercise the formal remedies below in the time and manner required by law, you will lose your right to use either formal mechanism to address your dispute.

 

 

─ OVERVIEW ─

 

You may dispute a tax liability or the application to you of any provision of the Tax Administration Act in one of two ways: 

1)      You may file a written protest with the Secretary of Taxation and Revenue; or

2)      You may pay the tax liability and then file a claim for refund. 

 

Choosing one remedy is an automatic waiver of the right to pursue the other.

 

── REMEDY 1:  PROTEST ──

 

If you wish to protest, you must file a written protest within 30 days of the date of the protestable event. That event can be the mailing or delivery to you of a notice of assessment of tax, your filing of a tax return showing a tax liability, or the application to you by the Department of a provision of the Tax Administration Act. The protest must state the taxpayer's name and identifying number (Social Security Account Number for individuals; New Mexico CRS Number or Federal Employer Identification Number for businesses), the taxes involved, the grounds for the protest, a summary statement of the evidence you expect to produce to support each ground asserted, and the affirmative relief you want.

 

During the 30-day protest period, you may file a written request for an extension of up to 60 additional days within which to file the protest. If your request for an extension of time is made after the original 30-day period has expired, the Secretary may grant a retroactive extension of not more than 60 days, provided you are able to demonstrate to the Secretary's satisfaction that you were not able to file a timely protest or request for extension and that your protest has substantial merit. A protest filed within 30 days or within an approved extension period will be reviewed by the Department's protest office. If the Department does not agree with your position, a formal hearing will be scheduled before a hearing officer to resolve the issues raised in the protest. You or the Department may request an informal conference prior to a formal hearing.

 

 

     APPEAL

 

You or the Department may appeal the hearing officer's decision on a protest to the New Mexico Court of Appeals. An appeal must be filed within 30 days of the date of mailing or delivery to you of the hearing officer's written Decision and Order. If you do not appeal within 30 days, the decision becomes final. An appeal is based solely on the information presented to the hearing officer at the formal hearing; you may not present new evidence to the court of appeals.

 

── REMEDY 2:  CLAIM FOR REFUND ──

 

If you believe that any tax you have paid or had withheld from you is more than you actually owe, you may file a claim for refund with the Secretary of Taxation and Revenue. You must file the claim within three years after the end of the calendar year in which the tax was due or in which payment was made. The written claim for refund must state the nature of the complaint and the affirmative relief you want. After review, the Secretary has 120 days to allow or deny the claim in whole or in part.

 

            IF THE REFUND IS DENIED

 

If the Secretary denies the claim in whole or in part, or fails to take action on the claim within 120 days, you may either file a protest with the Department or file a lawsuit in Santa Fe District Court. Your protest or lawsuit must be filed: 1) within 90 days of the date the denial of your claim for refund is mailed or delivered to you; or 2) within 90 days of the expiration of 120 days after you file a claim for refund with the Department if no action has been taken on the claim. If you fail to either protest or bring suit in Santa Fe District Court within 90 days of the date of a written denial, the denial becomes final and you may not re-file that claim. If the Department fails to take action on a claim for refund within 120 days, you may protest, bring suit or re-file your claim (subject to the three-year limitations period outlined above). A protest filed in connection with a claim for refund will be handled in the same manner as a protest of an assessment. Any lawsuit you file will be subject to the rules governing district courts. You or the Department may appeal an adverse ruling by the hearing officer or the district court to the New Mexico Court of Appeals.

 

 

─ FOR FURTHER ASSISTANCE ─

 

All protests should be mailed to the New Mexico Taxation and Revenue Department, Protest Office, P.O. Box 1671, Santa Fe, New Mexico 87504-1671.  All claims for refund should be mailed to the New Mexico Taxation and Revenue Department, Administrative Resolution and Services Bureau, P.O. Box 630, Santa Fe, New Mexico 87504-0630. Local tax offices can provide full service and information about the Department's taxes, programs, and forms as well as specific information about your filing situation. All telephone numbers are area code 505.  Main switchboard (Santa Fe): 827-0700.

 

ALAMOGORDO                 437-4850   

ALBUQUERQUE                 841-6200

CARLSBAD                         885-5616

CLOVIS                                763-5515

FARMINGTON                    325-5049

HOBBS                                 393-0163

LAS CRUCES                      524-6225

ROSWELL                           624-6065

SANTA FE                            827-0951

SILVER CITY                      388-1101

 

 

 

This publication provides general information. It does not constitute a regulation, ruling, or decision issued by the Secretary of the New Mexico Taxation and Revenue Department. The Department is legally bound only by a regulation or a ruling [7-1-60, New Mexico Statutes Annotated, 1978]. In the event of a conflict between FYI and statute, regulation, case law or policy, the information in FYIs is overridden by statutes, regulations and case law. Taxpayers and preparers are responsible for being aware of New Mexico tax laws and rules. Consult the Department directly if you have questions or concerns about information provided in this FYI.