us-nm/stat
NMSA 1978, § 7-1-11.2 — Required audit notices
A.
Except as provided in Subsection G of this section, prior to or coincident with
requesting records and books of account from a taxpayer pursuant to Section 7-1-11
NMSA 1978, as part of an office or field audit, the department shall provide the taxpayer
with written dated notice of the commencement of an audit. The notice shall, at a
minimum, state the tax programs and reporting periods to be covered and the date on
which the audit is commenced.
B.
To any taxpayer to whom the department is required to provide a written notice of
the commencement of an audit, the department shall also provide a written notice of the
outstanding records or books of account that have been requested but not received. If
the taxpayer has provided all records and books of account requested, the notice shall
so state. The notice of outstanding records or books of account shall be given no
sooner than sixty days, unless the taxpayer provides a written request for early
completion of the audit, and no later than one hundred eighty days after the date of the
commencement of the audit. The notice of outstanding records or books of account
shall be dated and shall provide reasonable descriptions of any records or books of
account needed or the information expected to be contained in them and shall give the
taxpayer ninety days to comply with Section 7-1-11 NMSA 1978. The notice shall state
that if the taxpayer does not properly comply within ninety days of the date of the notice,
the department will proceed to issue any assessment of tax due on the basis of
information available.
C.
A taxpayer may request additional time to comply with the notice of outstanding
records and books of account. Such request shall be in writing and shall state the
amount of time needed.
D.
If the department does not issue an assessment within one hundred eighty days
after giving a notice of outstanding records or books of account or within ninety days
after the expiration of the additional time requested by the taxpayer to comply, if such
request was granted, interest shall be computed in accordance with Paragraph (6) of
Subsection A of Section 7-1-67 NMSA 1978.
E.
Any taxpayer who was not provided a proper notice of outstanding records or
books of account is entitled to computation of interest in accordance with Paragraph (7)
of Subsection A of Section 7-1-67 NMSA 1978.
F.
Nothing in this section shall prevent the department from requesting from the
taxpayer a waiver of the statute of limitations for assessment of tax owed. Nothing in
this section shall prevent the department from issuing an assessment of tax owed on
the basis of the information available.
G.
This section does not apply to investigations of fraud.
Source: official text