N.M. Admin. Code § 3.1.10.13

Current through Register Vol. 35, No. 24, December 23, 2024

Section 3.1.10.13 - GENERAL PROVISIONS FOR PROVIDING SECURITY

A. When the secretary or secretary's delegate believes that it is necessary to ensure payment of any tax due, or reasonably expected to become due, the secretary or secretary's delegate may require or allow a person subject to the Tax Administration Act to furnish acceptable security. The secretary or secretary's delegate will notify the person by mailing or hand-delivering a written notice of requirement to furnish security in the amount stated in the notice. If the person addressed does not promptly comply, the secretary or secretary's delegate will make a written demand of the person by certified mail or in person that the person furnish security in the stated amount. Upon the failure of any person to comply within ten days of the date of the written demand for furnishing security, the secretary may institute a proceeding to enjoin that person from engaging in business in the state as provided in Section 7-1-53 NMSA 1978. The following examples illustrate some, but not all, situations in which the secretary or secretary's delegate may require or allow the furnishing of security:

(1) the taxpayer is a delinquent taxpayer;

(2) the taxpayer is granted an extension of time to pay taxes;

(3) the taxpayer enters into an installment agreement;

(4) the taxpayer requests a stay of levy;

(5) the taxpayer requests permission to report and pay certain taxes on a quarterly or semiannual basis;

(6) the taxpayer wishes to avoid an impending restraining order or an injunction proceeding;

(7) the taxpayer wishes to stay the enforcement of a jeopardy assessment;

(8) a successor in business has failed to withhold the amount of the tax liability of the predecessor or to pay the tax or surrender the property;

(9) a corporation is dissolving or withdrawing from the state;

(10) the taxpayer is conducting a business of a transient nature;

(11) the taxpayer has a recurring record of attempted payment of tax liabilities with bad checks;

(12) the taxpayer has failed to file any required tax returns within 45 days from the date the return was required to be filed;

(13) the taxpayer has engaged in business for more than three months during which period of time the taxpayer was not registered with the department or did not maintain an active identification number issued by the department.

B. The furnishing of security by a person liable for the payment of taxes will not prevent the imposition of interest due on deficiencies as provided by Section 7-1-67 NMSA 1978 nor prevent the imposition of civil penalty for failure to pay tax or file a return as provided by Section 7-1-69 NMSA 1978.

N.M. Admin. Code § 3.1.10.13

7/19/67, 11/5/85, 8/15/90, 10/31/96; 3.1.10.13 NMAC - Rn & A, 3 NMAC 1.10.13, 1/15/01