A. If a tax imposed is not paid on or before the day on which it becomes due, interest shall be paid to the state on that amount from the first day following the day on which the tax becomes due, without regard to any extension of time or installment agreement, until it is paid, except that:
(1) for income tax imposed on a member of the armed services of the United States serving in a combat zone under orders of the president of the United States, interest shall accrue only for the period beginning the day after any applicable extended due date if the tax is not paid;
(2) if the amount of interest due at the time payment is made is less than one dollar ($1.00), then no interest shall be due;
(3) if demand is made for payment of a tax, including accrued interest, and if the tax is paid within ten days after the date of the demand, no interest on the amount paid shall be imposed for the period after the date of the demand;
(4) if a managed audit is completed by the taxpayer on or before the date required, as provided in the agreement for the managed audit, and payment of any tax found to be due is made in full within one hundred eighty days of the date the secretary has mailed or delivered an assessment for the tax to the taxpayer, no interest shall be due on the assessed tax;
(5) when, as the result of an audit or a managed audit, an overpayment of a tax is credited against an underpayment of tax pursuant to Section 7-1-29 NMSA 1978, interest shall accrue from the date the tax was due until the tax is deemed paid;
(6) if the department does not issue an assessment for the tax program and period within the time provided in Subsection D of Section 7-1-11.2 NMSA 1978, interest shall be paid from the first day following the day on which the tax becomes due until the tax is paid, excluding the period between either:
(a) the one hundred eightieth day after giving a notice of outstanding records or books of account and the date of the assessment of the tax; or
(b) the ninetieth day after the expiration of the additional time requested by the taxpayer to comply pursuant to Section 7-1-11.2 NMSA 1978, if such request was granted, and the date of the assessment of the tax; and
(7) if the taxpayer was not provided with proper notices as required in Section 7-1-11.2 NMSA 1978, interest shall be paid from the first day following the day on which the tax becomes due until the tax is paid, excluding the period between one hundred eighty days prior to the date of assessment and the date of assessment.
B. Interest due to the state under Subsection A or D of this section shall be at the underpayment rate established for individuals pursuant to Section 6621 of the Internal Revenue Code computed on a daily basis; provided that if a different rate is specified by a compact or other interstate agreement to which New Mexico is a party, that rate shall be applied to amounts due under the compact or other agreement.
C. Nothing in this section shall be construed to impose interest on interest or interest on the amount of any penalty.
D. If any tax required to be paid in accordance with Section 7-1-13.1 NMSA 1978 is not paid in the manner required by that section, interest shall be paid to the state on the amount required to be paid in accordance with Section 7-1-13.1 NMSA 1978. If interest is due under this subsection and is also due under Subsection A of this section, interest shall be due and collected only pursuant to Subsection A of this section.
History: 1953 Comp., § 72-13-80, enacted by Laws 1965, ch. 248, § 68; 1982, ch. 18, § 14; 1990, ch. 86, § 8; 1991, ch. 97, § 1; 1993, ch. 5, § 10; 1996, ch. 15, § 7; 2000, ch. 28, § 11; 2001, ch. 16, § 7; 2003, ch. 398, § 13; 2007, ch. 45, § 2; 2007, ch. 262, § 4; 2013, ch. 27, § 11.
ANNOTATIONSCross references. — For managed audits, see 7-1-11.1 NMSA 1978.
For collection of penalties and interest, see 7-1-30 NMSA 1978.
The 2013 amendment, effective July 1, 2013, provided that interest shall be paid at the underpayment rate for individuals pursuant to the Internal Revenue Code; in Subparagraph (b) of Paragraph (6) of Subsection A, after "taxpayer to comply", added "pursuant to Section 7-1-11.2 NMSA 1978"; and in Subsection B, after "shall be at the", added "underpayment".
The 2007 amendment, effective July 1, 2007, in Paragraph (4) of Subsection A, increased the time to pay taxes found to be due by a managed audit from thirty to one hundred eighty days.
The 2003 amendment, effective July 1, 2003, added Subsections A(6) and A(7).
The 2001 amendment, effective July 1, 2001, added Paragraphs A(4) and (5).
The 2000 amendment, effective January 1, 2001, substituted "on a daily basis" for "at the rate of one and one-fourth percent per month or any fraction thereof," in Subsection B.
The 1996 amendment, effective July 1, 1996, added the proviso at the end of Subsection B.
The 1993 amendment, effective July 1, 1993, in Subsection A, substituted "except" for "provided, however," at the end of the introductory paragraph, inserted the paragraph designation "(1)", and added Paragraphs (2) and (3); in Subsection B, inserted "or D" and deleted "except that if the amount of interest due at the time payment is made is less than one dollar ($1.00), then no interest shall be due"; deleted former Subsection C, relating to the effect of payment of any tax within ten days after demand; redesignated former Subsections D and E as Subsections C and D; and, in the first sentence of Subsection D, deleted "the interest due under this subsection shall be one and one quarter percent of the amount" preceding "required to be paid".
The 1991 amendment, effective April 2, 1991, added the proviso in Subsection A and rewrote the final sentence in Subsection E which read "Interest due under this subsection shall be in addition to any interest due under Subsection A of this section".
The 1990 amendment, effective July 1, 1990, substituted "Interest due to the state under Subsection A of this section shall be" for "Interest shall be due to the state" at the beginning of Subsection B and added Subsection E.
No offset of overpayment against prior liability. — Interest on underpayment of taxes is calculated without regard to receipt by the taxation and revenue department of any overpayment of taxes. The department, once a claim for refund is made, is authorized only to allow a taxpayer claiming a refund for overpayment of gas production taxes to credit the refund against current or future tax liabilities. Amoco Prod. Co. v. N.M. Taxation & Revenue Dep't, 1994-NMCA-086, 118 N.M. 72, 878 P.2d 1021.
Am. Jur. 2d, A.L.R. and C.J.S. references. — 72 Am. Jur. 2d State and Local Taxation § 858.
85 C.J.S. Taxation §§ 1605, 1617 to 1624.