Benny Nevarez

03-19

The taxpayer is a New Mexico resident who found that his New Mexico personal income tax liability for 2000 exceeded the amount withheld from his wages by $282.  In 2002, the Department issued an assessment for the $282, plus penalty and interest, whereupon the taxpayer filed a written protest. The only basis for the taxpayer’s protest is his belief that the tax imposed is too high and that he should not be liable for amounts in excess of the tax withheld by his employer.  Held:  While statute requires employers to withhold income tax from their employees’ wages, the ultimate liability for tax remains with the employee.  Nothing in statute provides that the employer’s act of withholding discharges the employee from liability for taxes due in excess of the amount withheld.  Concerns with the fairness of the tax rate must be addressed through the legislative process.