us-nm/stat
NMSA 1978, § 7-1-29 — Authority to make refunds, credits or rebates
A.
In response to a claim for refund, credit or rebate made as provided in Section 7-
1-26 NMSA 1978, but before a court acquires jurisdiction of the matter, the secretary or
the secretary's delegate may authorize payment to a person in the amount of the credit
or rebate claimed or refund an overpayment of tax determined by the secretary or the
secretary's delegate to have been erroneously made by the person, together with
allowable interest.
B.
Pursuant to the final order of the district court, the court of appeals, the supreme
court of New Mexico or a federal court, from which order, appeal or review is not
successfully taken, adjudging that a person has properly claimed a credit, rebate or a
refund of overpaid tax, the secretary shall authorize the payment to the person of the
amount thereof. After a court acquires jurisdiction but before it issues a final order, the
secretary may authorize payment of a credit, rebate or refund pursuant to a closing
agreement pursuant to Section 7-1-20 NMSA 1978.
C.
In the discretion of the secretary, any amount of credit or rebate to be paid or tax
to be refunded may be offset against any amount of tax for which the person due to
receive the credit, rebate payment or refund is liable. The secretary or the secretary's
delegate shall give notice to the taxpayer that the credit, rebate payment or refund will
be made in this manner, and the taxpayer shall be entitled to interest pursuant to
Section 7-1-68 NMSA 1978 until the tax liability is credited with the credit, rebate or
refund amount.
D.
In an audit by the department or a managed audit covering multiple reporting
periods in which both underpayments and overpayments of a tax have been made in
different reporting periods, the department shall credit the tax overpayments against the
underpayments; provided that the taxpayer files a claim for refund of the overpayments.
An overpayment shall be applied as a credit first to the earliest underpayment and then
to succeeding underpayments. An underpayment of tax to which an overpayment is
credited pursuant to this section shall be deemed paid in the period in which the
overpayment was made or the period to which the overpayment was credited against an
underpayment, whichever is later. If the overpayments credited pursuant to this section
exceed the underpayments of a tax, the amount of the net overpayment for the periods
covered in the audit shall be refunded to the taxpayer.
E.
When a taxpayer makes a payment identified to a particular return or
assessment, and the department determines that the payment exceeds the amount due
pursuant to that return or assessment, the secretary may apply the excess to the
taxpayer's other liabilities pursuant to the tax acts to which the return or assessment
applies, without requiring the taxpayer to file a claim for a refund. The liability to which
an overpayment is applied pursuant to this section shall be deemed paid in the period in
which the overpayment was made or the period to which the overpayment was applied,
whichever is later.
F.
If the department determines, upon review of an original or amended income tax
return, corporate income and franchise tax return, estate tax return, special fuels excise
tax return or oil and gas tax return, that there has been an overpayment of tax for the
taxable period to which the return or amended return relates in excess of the amount
due to be refunded to the taxpayer pursuant to the provisions of Subsection K of
Section 7-1-26 NMSA 1978, the department may refund that excess amount to the
taxpayer without requiring the taxpayer to file a refund claim.
G.
Records of refunds and credits made in excess of twenty thousand dollars
($20,000) shall be available for inspection by the public. The department shall keep
such records for a minimum of three years from the date of the refund or credit.
H.
In response to a timely refund claim pursuant to Section 7-1-26 NMSA 1978 and
notwithstanding any other provision of the Tax Administration Act, the secretary or the
secretary's delegate may refund or credit a portion of an assessment of tax paid,
including applicable penalties and interest representing the amount of tax previously
paid by another person on behalf of the taxpayer on the same transaction; provided that
the requirements of equitable recoupment are met. For purposes of this subsection, the
refund claim may be filed by the taxpayer to whom the assessment was issued or by
another person who claims to have previously paid the tax on behalf of the taxpayer.
Prior to granting the refund or credit, the secretary may require a waiver of all rights to
claim a refund or credit of the tax previously paid by another person paying a tax on
behalf of the taxpayer.
I.
If, as a result of an audit by the department or a managed audit, a person is
determined to owe gross receipts tax on receipts from the sale of property or services,
the department may credit against the amount owed an amount of compensating tax
paid by the purchaser if the person can demonstrate that the purchaser timely paid the
compensating tax on the same property or services. The credit provided by this
subsection shall not be denied solely because the purchaser cannot timely file for a
refund of the compensating tax paid and, if the credit is to be granted, the department
shall require, for the purpose of granting the credit, that the purchaser give up any right
to claim a refund of that tax.
Source: official text