Dianne Goodman, CPA, FCPA
Comprehensive Small Business Solutions, PC

Business Accounting and Taxes, Individual Taxes and Forensic Services-Elder Abuse, Divorce and Business Fraud
1-888-851-1975 Toll Free or (505) 323-2307 in Albuquerque NM

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I own a multi-million dollar company in California which does business in 48 states. In August of 2012 I was notified by New Mexico of an audit of my corporate books. Following the audit, I retained Dianne Goodman, CPA to represent me in New Mexico and have found her to be professional, accurate and an aggressive tax advocate. In my mind Dianne achieved a significant win, for my company and for me personally, with respect to the audit and I would not hesitate to recommend her and I will definitely use her, should I be audited in New Mexico again.

Dianne Goodman is a caring and capable CPA (and forensic CPA) who helped me immensely to improve my current financial health by straightening out a major tax issue I had unwittingly created. And by reviewing my overall financial picture, she has also provided me with sound recommendations to help me optimize my financial health long-term. I'm so glad to have her as my financial adviser - she's my financial guardian angel. If you have questions re: a major financial change you're about to undergo, I highly recommend contacting Dianne first for preventative financial advice to help you keep your financial health optimized.

Thank you so much for taking the time to meet with me. I really appreciate how you guide and impart wisdom to make sure I do well.

Thank you so much Dianne! I really appreciate everything you have done for us.

Really do appreciate you Dianne-Sure thank C. for leading me to you. Have no idea where he is now.

Thank you! Thank you! Thank you! Appreciate all you do!

FOR IMMEDIATE RELEASE:

COULD YOU LOSE YOUR NEW MEXICO INCOME TAX OR GROSS RECEIPTS TAX REFUND CLAIM DUE TO INACTION?

You can lose your refund if you don't monitor your claim for a tax refund. The bottom line is that it is critical that you keep in contact with NM Taxation and Revenue from the initial filing of the claim for tax refund. This will help ensure that you don't lose your rights to receive the refund.

NM Statute Section 7-1-26(B) (2) NMSA 1978 has what is informally known as the 210 day rule for receiving a tax refund. If no action is taken on the taxpayer's part within 210 days of filing your tax refund claim, regardless if the State has taken no action or not made any effort to contact you, you have no recourse for that claim.

NM Statute Section 7-1-26(B) (2) NMSA 1978 states:

"If the department has neither granted nor denied any portion of a claim for refund within one hundred twenty days of the date the claim was mailed or delivered to the department, the person may re-file it within the time limits set forth in Subsection D of this section or may within ninety days elect to pursue one, but only one, of the remedies in Subsection C of this section. After the expiration of the two hundred ten days from the date the claim was mailed or delivered to the department, the department may not approve or disapprove the claim unless the person has pursued one of the remedies under Subsection C of this section."

This does not become problematic unless you are close to the statute of limitation on a claim. In general, the tax refund claim must be filed or re-filed within three years of the end of the calendar year in which the payment was originally due. There are exceptions which are not within the scope of this article. For example, if you pay your income tax for 2010 in April of 2011, your statute of limitation for claiming a refund would be December 31, 2014. If you pay your December 2010 gross receipts tax in January of 2011, the statute of limitation for claiming a tax refund would be December 31, 2014. This is the last day of the third year after the tax was due. In these examples you would be able to re-file a claim before December 31, 2014 if NM Taxation and Revenue has not taken any action on your original claim.

What can you do to protect your claim for a tax refund?

If the statute of limitation is not a problem:

Re-file Your Claim.

If the tax years for which you are filing your refund is NOT close to the statute of limitations, it is important to contact NM Taxation and Revenue to find out the status of your claim and ensure that you get in writing a granting or denial of your claim. If you are not sure that this will occur, you may want to consider re-filing the claim between the 120th and 210th day of the initial refund claim in order to not lose the right to obtain your tax refund.

If the statute of limitation is a problem for the tax years for which you are filing your refund:

You have two options as stated in Subsection C of NM Statute Section 7-1-26.

You can file a written protest or you may commence a civil action in the district court for Santa Fe County.

The best path of course would be to monitor your claim for tax refund from the beginning and know when the statute of limitation is for your claim. It's also important that you contact the right level of employee within NM Taxation and Revenue to ensure that your claim is getting the attention it deserves and is handled timely and accurately.

Go to WHAT IS THE NM GROSS RECEIPTS TAX? for more information on the New Mexico Gross Receipts Tax.

This article was intended to provide general information about a New Mexico claim for tax refund. It does not contain all the rules and exceptions that may apply to your situation. If you have further questions regarding this, I can be reached at www.diannegoodman.com.

About the Author

Dianne Goodman, CPA, FCPA - Specializes in servicing Small Businesses and Individuals. Visit www.diannegoodman.com for relevant and current information on a variety of financial and tax issues focusing on small businesses and individuals or call at 1-888-851-1975.

CONTACT INFORMATION:

Dianne Goodman, CPA, FCPA
Comprehensive Small Business Solutions, PC
505 323-2307
1 888-851-1975 toll free
www.diannegoodman.com

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