The Audit and Compliance Division’s (ACD) primary responsibility is to ensure compliance with tax programs under the Tax Administration Act by initiating audits, resolving tax issues, performing collection activities and providing customer service through the division‘s district offices. We have 12 district offices and bureaus, six of which are directly tied to audit, assessment and review. The other six are responsible for collections and taxpayer assistance.
Learn more about the different services and information provided by the Audit and Compliance Division below.
The Audit Technical Support Services Bureau
The Audit Technical Support Services (ATSS) Bureau reviews audits to ensure compliance with tax laws and consistency in and among the programs. The ATSS Bureau also conducts conferences (known as 10-day conferences) with taxpayers to offer them an additional opportunity to provide pertinent information prior to assessment. Adjustments can be made based on the new information. The ATSS Bureau produces audit statistics and assists with audit selection using data produced by the data warehouse.
The Call Center Bureau (CCB) uses a complex and flexible dialer system to contact taxpayers about delinquent liabilities and non-filed reports. CCB is generally the first bureau to contact taxpayers when a liability initially becomes delinquent after 30 days.
Other collection activities include generating notices, establishing short-term payment plans, taking incoming calls and using correspondence to resolve debt and other issues. If CCB cannot reach an agreement with a taxpayer to pay a debt, or if the taxpayer defaults on a payment agreement, liens are filed, and a wage or bank levy may be generated and served to the appropriate party to obtain payment. CCB also is responsible for the Treasury Offset Program. The program, based on an agreement with the Internal Revenue Service, allows TRD to receive and offset federal income tax refunds against New Mexico income tax debt.
The Compliance Bureau performs simple audits of taxpayers on personal income taxes. We use a data warehouse to store and compare third-party information with Department information from the tax processing system to identify taxpayers who may not have filed or who may have underreported their personal income tax.
Internal Revenue Service data are the primary source of third-party information for comparison purposes, but other data sources, such as the Department of Workforce Solutions, Regulation and Licensing Department, the Public Regulation Commission, the Department of Finance and Administration and U.S. Customs are being used for new projects.
We track all New Mexico bankruptcy cases and ensure that proper claims are filed to recover payment for any debt owed to the state and to monitor taxpayer accounts for compliance with current filing and payment requirements.
We also review and track agreements to collect and pay taxes on behalf of another taxpayer and distribute reports to New Mexico counties and municipalities about businesses that report gross receipts in their respective locations.
Desk Audit Bureau
The Desk Audit Bureau conducts such limited-scope audits as those based on information in a taxpayer’s federal Schedule C and on under-reported income identified through compliance efforts. We review tax credits including film, investment, high wage and technology job credits. We also administer the managed audit program. The managed audit program allows taxpayers a one-time opportunity to comply with the tax laws without having to pay penalty or interest.
The Audit and Compliance Division (ACD) District Offices provide taxpayer assistance and employs field revenue agents to resolve difficult delinquent accounts. We have district field offices in Albuquerque, Santa Fe, Las Cruces and Roswell with a small district office in Farmington.
All district offices have a main telephone number for your convenience. Each office also has Department personnel available if you wish to talk to a representative in person. You can visit an office for assistance with any tax-related matter, including applying for a Combined Reporting System (CRS) Business Tax Identification Number.
Personal computers are available in each office if you want to file your tax returns electronically, apply for a CRS business registration identification number, request non-taxable transaction certificates or update personal or business information electronically.
We offer workshops on gross receipts tax and personal income tax on a regular basis to educate the public about filing and payment requirements. Some gross receipts workshops for new businesses are offered in Spanish. Upon special request we also give workshops and presentations for various other tax programs or for specific organizations.
Free electronic filing for New Mexico Personal Income Tax is offered to citizens whose income is $22,000 or less.
Free Filing Assistance
Liens and Levies
Field Audit Bureaus
The Field Audit Bureau conducts audits of taxpayers in the largest tax programs: gross receipts, compensating tax, withholding tax, corporate income tax, fiduciary tax and oil and gas withholding tax.
Our auditors conduct in-state and out-of-state audits, ensuring compliance with New Mexico tax laws and educating taxpayers in the process.
Miscellaneous Tax Programs Bureau
The Miscellaneous Tax Programs Bureau examines the books and records of taxpayers who pay taxes in 14 tax programs. These include gasoline, special fuels, cigarette, other tobacco products, liquor, private railroad car, and weight distance taxes.
We also check E-911 and Telecommunications Relay Surcharge, International Registration Plan (IRP) and water conservation fees, and taxes under the International Fuel Tax Agreement (IFTA).
Among our other duties, we assess taxpayers when underreporting of taxes appears to be an issue.
All Tax Programs
Oil and Gas Bureau
The Oil and Gas Bureau consists of auditors and collection staff who audit and ensure compliance with the severance tax (oil and natural gas tax) programs. In addition, audits are conducted under the federal royalty program via a contract with the Mineral Management Services (MMS) of the Department of Interior to ensure that the correct amount of federal royalties is paid, a portion of which are paid to New Mexico by MMS.
If you would like to receive a kit for filing taxes with the Oil and Gas Bureau, please call 505-827-0812.