New Mexico Extending Modifications to its Enforcement Efforts Due to COVID-19 Through August 31

The New Mexico Taxation and Revenue Department has announced that it will extend some modifications to its collection and enforcement efforts due to COVID-19 through August 31, 2020. The modifications were originally announced on March 30, 2020 to help taxpayers during the COVID-19 pandemic. The most severe collection activities, including new liens, seizures and injunctions, are on hold through August 31, 2020. Taxpayers may be eligible for penalty and interest relief on late payments as long as they have met filing deadlines. Taxpayers on payment plans will be offered an additional deadline extension of 30 days (for a total of 90 days) and taxpayers will be encouraged to make good faith payments to prevent defaults. Taxpayers undergoing field or desk audits will be offered the opportunity to request an extension or a waiver giving them additional time to produce records. A program that automatically garnishes state tax refunds for payment of federal tax debts remains suspended. Potentially noncompliant taxpayers will be offered managed audits, which can result in a waiver of penalty and interest for 180 days. The Department additionally states that most regular enforcement and collection efforts will resume September 1, 2020. (Press Release, New Mexico Taxation and Revenue Department, July 30, 2020)

Posted on August 13, 2020