A. A managed audit may be limited in scope to certain periods, activities, lines of business, geographic areas or transactions, including tax on:
(1) the receipts from certain sales;
(2) the value of certain assets;
(3) the value of certain expense items or services used; and
(4) any other category specified in an agreement authorized by this section.
B. Upon the application of the taxpayer, the secretary or the secretary's delegate may enter into a written agreement with a taxpayer for a managed audit. To be effective the written agreement must:
(1) be signed by the taxpayer or the taxpayer's authorized representative and by the secretary or the secretary's delegate;
(2) contain a declaration by the taxpayer or the taxpayer's authorized representative that all statements of fact made by the taxpayer or the taxpayer's representative in the taxpayer's application and the agreement are true and correct as to every material matter;
(3) specify the reporting period or periods, the type of receipts or transactions and tax to be audited, the procedures to be followed in performing the managed audit, the records to be used, the date of commencement of the audit for purposes of Section 7-9-43 NMSA 1978 and the date for the taxpayer's presentation of the results of the managed audit to the department; and
(4) include a waiver by the taxpayer of the limitations on assessments for the reporting period or periods to be audited.
C. The agreement for a managed audit may be modified in writing, provided that the modification meets the requirements of Subsection B of this section.
D. In determining whether to enter into an agreement for a managed audit the secretary or the secretary's delegate may consider, in addition to other relevant factors:
(1) the taxpayer's history of tax compliance;
(2) the amount of time and resources the taxpayer has available to dedicate to the audit;
(3) the extent and availability of the taxpayer's records; and
(4) the taxpayer's ability to pay any expected liability.
E. The decision whether to enter into an agreement for a managed audit rests solely with the secretary or the secretary's delegate.
F. The results of the managed audit shall be presented to the department by the taxpayer on or before any date set for presentation of the results in the managed audit agreement. The department shall assess the tax liability found to be due as the result of a managed audit performed in accordance with a managed audit agreement. The department may review records, documents, schedules or other information to determine if the managed audit substantially conforms to the managed audit agreement.
History: Laws 2001, ch. 16, § 1; 2003, ch. 398, § 6.
ANNOTATIONSCross references. — For definition of local option gross receipts tax, see 7-1-3 NMSA 1978.
For gross receipts tax, see 7-9-4 NMSA 1978.
For compensating tax, see 7-9-7 NMSA 1978.
Temporary provisions. — Laws 2020 (1st S.S.), ch. 4, § 4, effective June 29, 2020, provided:
A. Notwithstanding Sections 7-1-67 and 7-1-69 NMSA 1978, no interest shall accrue and no penalty shall be assessed to a taxpayer for:
(1) tax liabilities pursuant to the Income Tax Act or the Corporate Income and Franchise Tax Act for failure to pay the tax that became due April 15, 2020 through July 15, 2020; provided that the failure to pay the tax was made without intent to evade or defeat the tax; and provided further that payment for the unpaid payments is made in full on or before April 15, 2021;
(2) tax liabilities pursuant to the Withholding Tax Act for failure to pay the tax that became due March 25, 2020 through July 25, 2020; provided that the failure to pay the tax was made without intent to evade or defeat the tax; and provided further that payment for the unpaid taxes is made in full on or before April 25, 2021;
(3) gross receipts tax, local option gross receipts tax or compensating tax liabilities for failure to pay any of those taxes that became due March 25, 2020 through July 25, 2020; provided that the failure to pay the tax was made without intent to evade or defeat the tax; and provided further that payment for the unpaid taxes is made in full on or before April 25, 2021; and
(4) tax liabilities assessed between September 3, 2019 and January 3, 2020 as the result of a managed audit performed in accordance with a managed audit agreement pursuant to Section 7-1-11.1 NMSA 1978; provided that payment for those liabilities is made pursuant to terms of the managed audit agreement on or before December 31, 2020.
B. Notwithstanding Sections 7-38-49 and 7-38-50 NMSA 1978, no interest shall accrue and no penalty shall be assessed to a property owner for unpaid property taxes that became due April 10, 2020 pursuant to Section 7-38-38 NMSA 1978; provided that:
(1) the unpaid property taxes did not become delinquent because of an intent to defraud by the property owner;
(2) payment for the unpaid property taxes is made in full on or before May 10, 2021; and
(3) the subject property does not have property taxes that became delinquent pursuant to Section 7-38-46 NMSA 1978 prior to May 10, 2020.
The 2003 amendment, effective July 1, 2003, deleted "gross receipts tax, local option gross receipts taxes or compensating tax due from" following "limited in scope to" near the beginning of Subsection A.