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When we receive a refund of tax we’ve already paid, it’s a lot like discovering unexpected money in the bank.

Everyone likes to see either a windowed envelope containing the state’s check arrive in the mail -- or perhaps an electronic entry in a bank statement that the refund has already been deposited safely.  

Once in a while, however, there is a problem. In the following pages you can find directions on what to do if your refund is lost; if you make a mistake in the bank’s routing number for a direct deposit of your refund, or more rarely, if another state agency intercepts your refund to satisfy a debt you owe to it or its clients. We also offer hints on how to prevent refund mistakes altogether.

Take the time to check the refund pages. Doing so can make your life a little easier.

Refund Intercepts

The Taxation and Revenue Department may intercept Personal Income Tax (PIT) refunds and keep all or part of your refund if you owe other taxes to the state. The refund is applied to the outstanding liability.

In addition, the law requires the Department to transfer all or part of your overpayment to the Human Services Department, the Educational Assistance Foundation, the Workforce Solutions Department, the Worker’s Compensation Administration or the courts, if you owe money for past-due child support, educational assistance loans, unemployment compensation, medical support, public assistance or food stamp overpayments, fines, fees and costs owed to district, municipal, magistrate or metropolitan courts, or workers’ compensation fees. Any amount over your liability and debt to these agencies will be refunded to you.

The agency associated with the liability notifies the Department to intercept the refund to offset the outstanding debt.

You will receive notification that all or part of your refund was transferred to one of these agencies. You must contact that agency (listed below). If your refund was transferred to a claimant agency in error, that agency must correct the error and issue the refund.

Educational Assistance

NM Educational Assistance Foundation
Contract Servicing Department Default Collections
P.O. Box 25136
Albuquerque, NM 87125-0136
(505) 761-2312

Human Services Department

Child Support Enforcement Division
P.O. Box 25110
Santa Fe, NM 87504-5110
(800) 288-7207, Instate
(800) 585-7631, Out of state

Human Services Department

Office of the Inspector General
Restitution Unit
P.O. Box 2348
Santa Fe, NM 87504-2348
(800) 431-4593

New Mexico Department of Workforce Solutions

Unemployment Insurance Benefit
Payment Control
P.O. Box 1928
Albuquerque, NM 87103
(505) 841-2220

Administrative Office of the Courts

Warrant Enforcement Division
237 Don Gaspar, Room 25
Santa Fe, NM 87501
(505) 827-4754
(505) 827-3972

Workers’ Compensation Administration

Financial Management Bureau
P.O. Box 27198
2410 Center Ave. SE
Albuquerque, NM 87125-7198
(505) 841-6000

Taxpayer Offset Program

The Department has established a cooperative program with the Internal Revenue Service (IRS). This means that the Department can intercept monies owed to the state from federal IRS refunds. When your federal refund has been applied to an outstanding state tax balance and excess money remains, that money is then refunded to you.

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