us-nm/stat
NMSA 1978, § 7-1-69 — Civil penalty for failure to pay tax or file a return
A.
Except as provided in Subsection C of this section, in the case of failure due to
negligence or disregard of department rules and regulations, but without intent to evade
or defeat a tax, to pay when due the amount of tax required to be paid, to pay in
accordance with the provisions of Section 7-1-13.1 NMSA 1978 when required to do so
or to file by the date required a return regardless of whether a tax is due, there shall be
added to the amount assessed a penalty in an amount equal to the greater of:
(1) two percent per month or any fraction of a month from the date the tax
was due multiplied by the amount of tax due but not paid, not to exceed twenty percent
of the tax due but not paid;
(2) two percent per month or any fraction of a month from the date the return
was required to be filed multiplied by the tax liability established in the late return, not to
exceed twenty percent of the tax liability established in the late return; or
(3) a minimum of five dollars ($5.00), but the five-dollar ($5.00) minimum
penalty shall not apply to taxes levied under the Income Tax Act [Chapter 7, Article 2
NMSA 1978], Corporate Income and Franchise Tax Act [Chapter 7, Article 2A NMSA
1978], Withholding Tax Act [Chapter 7, Article 3 NMSA 1978], Oil and Gas Proceeds
and Pass-Through Entity Withholding Tax Act [Chapter 7, Article 3A NMSA 1978],
workers' compensation fee authorized by Section 52-5-19 NMSA 1978 or taxes
administered by the department pursuant to Subsection B of Section 7-1-2 NMSA 1978.
B.
No penalty shall be assessed against a taxpayer if the failure to pay an amount
of tax when due results from a mistake of law made in good faith and on reasonable
grounds.
C.
If a different penalty is specified in a compact or other interstate agreement to
which New Mexico is a party, the penalty provided in the compact or other interstate
agreement shall be applied to amounts due under the compact or other interstate
agreement at the rate and in the manner prescribed by the compact or other interstate
agreement.
D.
In the case of failure, with willful intent to evade or defeat a tax, to pay when due
the amount of tax required to be paid, there shall be added to the amount fifty percent of
the tax or a minimum of twenty-five dollars ($25.00), whichever is greater, as penalty.
E.
If demand is made for payment of a tax, including penalty imposed pursuant to
this section, and if the tax is paid within ten days after the date of such demand, no
penalty shall be imposed for the period after the date of the demand with respect to the
amount paid.
F.
If a taxpayer makes electronic payment of a tax but the payment does not include
all of the information required by the department pursuant to the provisions of Section 7-
1-13.1 NMSA 1978 and if the department does not receive the required information
within five business days from the later of the date a request by the department for that
information is received by the taxpayer or the due date, the taxpayer shall be subject to
a penalty of two percent per month or any fraction of a month from the fifth day following
the date the request is received. If a penalty is imposed under Subsection A of this
section with respect to the same transaction for the same period, no penalty shall be
imposed under this subsection.
G.
No penalty shall be imposed on:
(1) tax due in excess of tax paid in accordance with an approved estimated
basis pursuant to Section 7-1-10 NMSA 1978;
(2) tax due as the result of a managed audit; or
(3) tax that is deemed paid by crediting overpayments found in an audit or
managed audit of multiple periods pursuant to Section 7-1-29 NMSA 1978.
Source: official text