Sales, Use and International Tax Articles

Sales, Use and International Tax Activity Update - July 2010

States Turn Down the Heat with Tax Amnesty Programs - New Mexico

New Mexico Tax Relief is a new program designed to help New Mexico taxpayers get current on their taxes. In 2010, the New Mexico Legislature declared a temporary amnesty period. This amnesty is extended to taxpayers subject to one or more tax programs under the Tax Administration Act. The Department can conduct an amnesty review for qualifying taxpayers under prescribed circumstances.

From June 7, 2010 to September 30, 2010, the New Mexico Taxation and Revenue Department is offering this unique, limited-time opportunity to avoid penalties and interest. Qualifying taxpayers who enter into an Amnesty Agreement will not be assessed penalties, and if they pay the resulting assessment of taxes due within 180 calendar days of assessment, no interest will be due.
The amnesty agreement must include the following components to be considered complete and binding. It must:

• bear the signatures of the taxpayer and the Secretary (or Secretary’s delegate)
• contain the taxpayer’s declaration that all statements in the application and in the agreement are true and correct
• specify the report period(s) covered under the amnesty
• specify the type of receipts or transactions and tax program(s) under amnesty
• specify the amnesty issues
• specify the procedures and records used in performing the review
• specify the amnesty’s beginning date
• specify the date when the taxpayer will present required documents to the Department
• include the taxpayer’s waiver of limitations on assessments for the report period(s) under amnesty provided that the Department’s standard audit procedures require a waiver.

After the taxpayer submits all required documentation, the Secretary has sole discretion to accept, modify or terminate the amnesty agreement. The Secretary may terminate the agreement at any time during the process if specified deadlines are not met.

First, a taxpayer must submit a completed application and agreement to the Department. Once the Department and the taxpayer have signed the agreement, the Secretary will assign a Department reviewer to assist the taxpayer with the amnesty process.

Release, New Mexico Taxation and Revenue Department, June 7, 2010.

The Release can be viewed on the New Mexico Taxation and Revenue Department Web site.

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