In recognition of the financial difficulties facing many New Mexico residents and businesses during the COVID-19 pandemic, the Taxation and Revenue Department is temporarily modifying some of its enforcement activities.

The Department already has extended personal and corporate income tax deadlines and payroll tax payments.

“We understand that businesses and individuals are facing unprecedented uncertainty and financial disruption during this emergency.  The Taxation and Revenue Department is committed to helping taxpayers get through this difficult time,” said Department Secretary Stephanie Schardin Clarke.

Among the steps being taken by the Department are:

  • The most severe collection activities, including new liens, seizures and injunctions, will cease for 90 days.
  • A program that automatically garnishes state tax refunds for payment of federal tax debts is suspended.
  • Additional resources are being devoted to quickly clear identity verification questions on income tax refunds to ensure they are legitimate.
  • Staff is prioritizing review and approval of refund requests, business credits and abatements of taxes due.
  • Potentially noncompliant taxpayers will be offered managed audits, a voluntary program that can result in a waiver of penalty and interest for 180 days.
  • Additional staff will be assigned to help resolve tax protests.
  • Taxpayers on payment plans will be offered deadline extensions of up to 60 days, and taxpayers will be encouraged to make good faith payments to prevent defaults.
  • Taxpayers undergoing audits will be offered the opportunity to request a 60-day suspension or a waiver giving them more time to produce records.