New Mexico: Sales Tax Handbook
How to appeal a sales tax audit or penalty in New Mexico
In New Mexico, the Tax Compliance Bureau will frequently audit business sales tax returns and may issue penalties or punishments for tardy filing, incorrect reporting, willful omissions, or other violations. Penalties can range from fines to revocation of your sales tax permit depending on the infraction.
If you disagree with a penalty or ruling made by the New Mexico Tax Compliance Bureau, you have several options you can pursue in appealing their decision. This page contains basic guidelines for appealing to the Tax Compliance Bureau, to an administrative appeal body, and through the courts.
Sales Tax Statute of Limitations in New Mexico
In sales tax law, the "statute of limitations" is the maximum amount of time state authorities have to investigate and begin potential audit or prosecution related to a a filed New Mexico sales tax return in the event of underpayment, incorrect reportings, etc. The Tax Compliance Bureau cannot begin an audit or issue a penalty after this timeframe.
The statute of limitations in the state of New Mexico is three years from the end of the calendar year that the tax payment was originally due. It must be noted that if no return was filed it become seven years, if the taxes were understated by over 25% it becomes six years, and it become ten years if the return filed was found to be fraudulent.
Appealing to the Tax Compliance Bureau in New Mexico
If you do not agree with a penalty or decision made by the New Mexico Tax Compliance Bureau, you have the right to file an appeal and ask for reconsideration. In the case of a department appeal, an official petition must be completed with the Secretary of Taxation and Revenue less than thirty days after mailing notice of assessment or thirty days after return mailed or filedTop
Administrative Sales Tax Appeals in New Mexico
This district has no administrative appeal bodyTop
Judicial Sales Tax Appeals in New Mexico
If all other appeal avenues fail, businesses can make a final appeal in the state court system. When working with judicial appeals, the suit must be filed with Court of Appeals within thirty days of mailing or delivery of the administrative hearing's decision. It must be noted that if the administrative hearing is not held, the suit must be filed with the District Court for Santa Fe County within ninety days after the denial of claim or ninety days after expiration of Secretary's time for action.
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