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NM Taxation Department changes rules regarding back taxes

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The state of New Mexico has changed some of its tax rules so that more individuals and small businesses will be able to pay back taxes without penalties or interest.

The New Mexico Taxation and Revenue Department announced Thursday that it was expanding the qualifications regarding its managed audit program. According to the department, a managed audit is a voluntary program that allows individuals and small businesses to pay back taxes without penalties and interest.

“These changes will provide more opportunities for New Mexico taxpayers to come into compliance with New Mexico’s tax laws while avoiding costly penalties and interest,” said John Monforte, acting Cabinet secretary for the New Mexico Taxation and Revenue Department.

In an effort to encourage higher levels of voluntary compliance, the department will allow qualified taxpayers who owe back taxes to conduct self-audits. Taxpayers can now come in for certain liabilities which were not previously allowed.

This change will benefit taxpayers because the department will waive the penalty and the interest if the liabilities are paid within the 180 days. If taxpayers do not come in for the managed audit, they will be assessed for tax, penalty and interest. Taxpayers must be able to remit payment within 180 days or interest will be applied to the remaining assessment amount after that time period has elapsed.

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