us-nm/stat
NMSA 1978, § 7-1-18 — Limitation on assessment by department
A.
Except as otherwise provided in this section, no assessment of tax may be made
by the department after three years from the end of the calendar year in which payment
of the tax was due, and no proceeding in court for the collection of such tax without the
prior assessment thereof shall be begun after the expiration of such period.
B.
In case of a false or fraudulent return made by a taxpayer with intent to evade
tax, the amount thereof may be assessed at any time within ten years from the end of
the calendar year in which the tax was due, and no proceeding in court for the collection
of such tax without the prior assessment thereof shall be begun after the expiration of
such period.
C.
In case of the failure by a taxpayer to complete and file any required return, the
tax relating to the period for which the return was required may be assessed at any time
within seven years from the end of the calendar year in which the tax was due, and no
proceeding in court for the collection of such tax without the prior assessment thereof
shall be begun after the expiration of such period.
D.
If a taxpayer in a return understates by more than twenty-five percent the amount
of liability for any tax for the period to which the return relates, appropriate assessments
may be made by the department at any time within six years from the end of the
calendar year in which payment of the tax was due.
E.
If any adjustment in the basis for computation of any federal tax is made as a
result of an audit by the internal revenue service or the filing of an amended federal
return or administrative adjustment request changing a prior election or making any
other change for which federal approval is required by the Internal Revenue Code that
results in liability for any tax, the amount thereof may be assessed at any time, but not
after three years from the end of the calendar year in which filing of a federal
adjustments report is required by Subsections E through J of Section 7-1-13 NMSA
1978.
F.
If the taxpayer has signed a waiver of the limitations on assessment imposed by
this section, an assessment of tax may be made or a proceeding in court begun without
regard to the time at which payment of the tax was due.
G.
As used in this section:
(1) "administrative adjustment request" means "administrative adjustment
request" as used in Section 7-1-13 NMSA 1978; and
(2) "federal adjustments report" means "federal adjustments report" as used
in Section 7-1-13 NMSA 1978.
Source: official text