NMSA 1978, § 7-1-10 — 7-1-10

Records required by statute; taxpayer records; accounting
methods; reporting methods; information returns.

# A.

Every person required by the provisions of any statute administered by the
department to keep records and documents and every taxpayer shall maintain books of
account or other records in a manner that will permit the accurate computation of state
taxes or provide information required by the statute under which the person is required
to keep records.

# B.

Methods of accounting shall be consistent for the same business. A taxpayer
engaged in more than one business may use a different method of accounting for each
business.

# C.

Prior to changing the method of accounting in keeping books and records for tax
purposes, a taxpayer shall first secure the consent of the secretary or the secretary's
delegate. If consent is not secured, the department upon audit may require the taxpayer
to compute the amount of tax due on the basis of the accounting method earlier used.

# D.

Prior to changing the method of reporting taxes, other than for changes required
by law, a taxpayer shall first secure the consent of the secretary or the secretary's
delegate. Consent shall be granted or withheld pursuant to the provisions of Section 7-
4-19 NMSA 1978. If consent is not secured, the secretary or the secretary's delegate
upon audit may require the taxpayer to compute the amount of tax due on the basis of
the reporting method earlier used.

# E.

Upon the written application of a taxpayer and at the sole discretion of the
secretary or the secretary's delegate, the secretary or the secretary's delegate may
enter into an agreement with a taxpayer allowing the taxpayer to report values, gross
receipts, deductions or the value of property on an estimated basis for gross receipts
and compensating tax, oil and gas severance tax, oil and gas conservation tax, oil and
gas emergency school tax and oil and gas ad valorem production tax purposes for a
limited period of time not to exceed four years. As used in this section, "estimated basis"
means a methodology that is reasonably expected to approximate the tax that will be
due over the period of the agreement using summary rather than detail data or alternate
valuation applications or methods, provided that:
(1) nothing in this section shall be construed to require the secretary or the
secretary's delegate to enter into such an agreement; and
(2) the agreement must:
(a) specify the receipts, deductions or values to be reported on an estimated
basis and the methodology to be followed by the taxpayer in making the estimates;
(b) state the term of the agreement and the procedures for terminating the
agreement prior to its expiration;
(c) be signed by the taxpayer or the taxpayer's representative and the
secretary or the secretary's delegate; and
(d) contain a declaration by the taxpayer or the taxpayer's 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.

# F.

The secretary may, by regulation, require any person doing business in the state
to submit to the department information reports that are considered reasonable and
necessary for the administration of any provision of law to which the Tax Administration
Act applies.