State & Local Tax Impacts of COVID-19 for New Mexico – 2020

Thoughtware Alert Published: Dec 11, 2020 | Updated: May 05, 2021

Information current as of December 31, 2020.

COVID-19 has changed life across the globe. Many taxing jurisdictions are taking mitigating actions to create social distance and aid taxpayers. The following is a running list of actions by jurisdiction, which generally result in additional time to file and/or pay. Further, many jurisdictions have closed their offices to in-person use by taxpayers and suspended their audit and administrative functions. This alert doesn’t cover similar waivers from local-level taxing authorities. These developments continue to quickly evolve; check with your BKD Trusted Advisor or visit our COVID-19 Resource Center for current information as needed.

Information Specific to New Mexico

  • The DOR announced extended return and payment deadlines for corporate and personal income tax returns and payments due between April 15 and July 15, which may be submitted without penalty no later than July 15. Withholding returns and payments due between March 25 and July 25 may be submitted without penalty no later than July 25. While no penalties will be imposed if a taxpayer complies with the extensions, the DOR notes that it’s statutorily prohibited from waiving interest imposed on late payments from the original statutory due date.
    • New Mexico DOR Bulletin B-100.35, March 20, 2020.
  • New Mexico won’t charge interest on personal and corporate income taxes filed and paid by the extended July 15 deadline, as the deadline is tied to federal deadlines.
    • New Mexico DOR Notice, March 25, 2020.
  • New Mexico would temporarily waive penalties and interest for tax liabilities to help taxpayers cope with the coronavirus pandemic. The waivers would apply to withholding taxes, personal and corporate income taxes, and gross receipts taxes generally due in the second quarter of 2020. Penalties and interest for managed audit liabilities from September 2019 to January 2020 also would be waived. The taxes would have to be paid within a year.
    • New Mexico H.B. 6, Laws 2020, effective June 29, 2020.
  • New Mexico has extended some modifications to state tax collection efforts that were enacted as a result of the COVID-19 public health emergency. While most regular enforcement and collection efforts will resume September 1, 2020, the most severe collection activities (including new liens, seizures, and injunctions) are now on hold through August 31; taxpayers on payment plans will be offered an additional deadline extension of 30 days; and taxpayers undergoing audits will be offered the opportunity to request an extension or a waiver, giving them more time to produce records. 
    • New Mexico DOR Notice, July 30, 2020.

For more information, reach out to your BKD Trusted Advisor or use the Contact Us form below.

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