Collection Agencies

The State may employ a collection agency to resolve cases of liability. Typically this is done after several notices have been issued and ignored, or a significant amount of time has passed. Fees associated with the use of the collection agency may be added to a delinquent taxpayer’s total liability.

Collections

You will receive a notice regarding your deficiency if you fail to pay a tax bill or other due in full. If you fail to pay or otherwise address your liability after receiving such a notice, the State will begin to take enforced collection actions. Continued failure to resolve liability will result in increasingly forceful means of collection.

Levies

Failure to pay assessed taxes or associated deficiencies may result in the issuance of a levy. A levy may be attached to a property or the rights thereto, including physical assets, wages, and bank accounts. Levied property may be subject to sale or liquidation as a means of resolving liability.

Liens

Failure to pay assessed taxes or associated deficiencies automatically creates a lien. A tax lien serves as a public notice of liability to the state and may be filed as such. Due to its public nature, it may harm credit ratings. Liens are released when the associated liability is paid.

Payment Agreement

You may be able to request a payment plan if you cannot pay your initial tax liability in full. The State is obligated to protect its interests, and may additionally file a lien or establish some other form of security if your plan is long enough. You will need to comply closely with the terms of any agreement you make, lest you incur further penalties or an enforced collection process.

Penalty

Delinquent taxes may result in additions to your total liability in the form of penalties. Penalties may vary depending upon the circumstances and type of tax left unpaid.

Protests

You have the right to protest a liability or actions taken against you by the Taxation and Revenue Department if you do so in a timely manner.

This is done either by filing a written protest with the Secretary of the TRD without making payment or by paying your liability and then filing a refund claim. Pursuing either option waives your right to pursue the other.

Representation

You can provide written authorization, in the form of the completed appropriate documentation, to the TRD if you wish to obtain representation. In some cases, written authorization is not required. Such cases include:

• Accountants and attorneys licensed to practice in New Mexico.
• In matters of income tax, enrolled agents.