NMSA 1978, § 7-3-5 — 7-3-5

Withholder liable for amounts deducted and withheld;
exceptions.
Every withholder shall be liable for amounts required to be deducted and withheld by
the Withholding Tax Act regardless of whether the amounts were in fact deducted and
withheld, except that:

# A.

if the withholder fails to deduct and withhold the required amounts and if the tax
against which the required amounts would have been credited is paid, the withholder
shall not be liable for those amounts not deducted and withheld; or

# B.

if the withholder's failure to deduct and withhold the required amounts was due to
reasonable cause, the withholder shall not be liable for amounts not deducted and
withheld.