SENATE BILL 320
47th legislature - STATE OF NEW MEXICO - second session, 2006
INTRODUCED BY
John Arthur Smith
FOR THE REVENUE STABILIZATION AND TAX POLICY COMMITTEE
AN ACT
RELATING TO TAXATION; REQUIRING TAX RETURN PREPARERS WHO FILE OVER TWENTY-FIVE PERSONAL INCOME TAX RETURNS TO FILE THOSE RETURNS ELECTRONICALLY UNDER CERTAIN CONDITIONS; PERMITTING THE SECRETARY OF TAXATION AND REVENUE TO REQUIRE ELECTRONIC DELIVERY OF RETURNS OR PAYMENTS; CHANGING REQUIREMENTS FOR PAYMENT OF CERTAIN TAXES; CHANGING THE DUE DATE FOR WITHHOLDING TAX PAYMENTS; PROVIDING A PENALTY.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
Section 1. A new section of the Tax Administration Act is enacted to read:
"[NEW MATERIAL] TAX RETURN PREPARER ELECTRONIC FILING REQUIREMENT--PENALTY.--
A. A tax return preparer that files over twenty-five personal income tax returns for a taxable year shall file each of those returns by electronic means with the department unless a person for whom the preparer files a return requests, in a form prescribed by the department, that the return be filed by other means in accordance with department regulation.
B. A tax return preparer shall pay to the department a penalty not to exceed five dollars ($5.00) for each tax return filed in violation of this section."
Section 2. Section 7-1-13 NMSA 1978 (being Laws 1965, Chapter 248, Section 18, as amended) is amended to read:
"7-1-13. TAXPAYER RETURNS--PAYMENT OF TAXES--EXTENSION OF TIME.--
A. Taxpayers are liable for tax at the time of and after the transaction or incident giving rise to tax until payment is made. Taxes are due on and after the date on which their payment is required until payment is made.
B. Every taxpayer shall, on or before the date on which payment of any tax is due, complete and file a tax return in a form prescribed and according to the regulations issued by the secretary. Except as provided in Section 7-1-13.1 NMSA 1978 or by regulation, ruling, order or instruction of the secretary, the payment of any tax or the filing of any return may be accomplished by mail. The secretary may require the electronic delivery of any return or payment by regulation, ruling, order or instruction.
C. If any adjustment is made in the basis for computation of any federal tax as a result of an audit by the internal revenue service or the filing of an amended federal return changing a prior election or making any other change for which federal approval is required by the Internal Revenue Code, the taxpayer affected shall, within ninety days of the internal revenue service audit adjustment or payment of the federal refund, file an amended return with the department. Payment of any additional tax due shall accompany the return.
D. Payment of the total amount of all taxes that are due from the taxpayer shall precede or accompany the return. Delivery to the department of a check that is not paid upon presentment does not constitute payment.
E. The secretary or the secretary's delegate may, for good cause, extend in favor of a taxpayer or a class of taxpayers, for no more than a total of twelve months, the date on which payment of any tax is required or on which any return required by provision of the Tax Administration Act shall be filed, but no extension shall prevent the accrual of interest as otherwise provided by law. When an extension of time for income tax has been granted a taxpayer under the Internal Revenue Code, such extension shall serve to extend the time for filing New Mexico income tax provided that a copy of the approved federal extension of time is attached to the taxpayer's New Mexico income tax return, except that the secretary by regulation may also provide for the automatic extension for no more than four months of the date upon which payment of any New Mexico income tax or the filing of any New Mexico income tax return is required. If the secretary or the secretary's delegate believes it necessary to assure the collection of the tax, the secretary or the secretary's delegate may require, as a condition of granting any extension, that the taxpayer furnish security in accordance with the provisions of Section 7-1-54 NMSA 1978."
Section 3. Section 7-1-13.1 NMSA 1978 (being Laws 1988, Chapter 99, Section 3, as amended) is amended to read:
"7-1-13.1. METHOD OF PAYMENT OF CERTAIN TAXES DUE.--
A. Payment of the taxes, including any applicable penalties and interest, described in Paragraph (1), (2), (3) or (4) of this subsection shall be made on or before the date due in accordance with Subsection B of this section if the taxpayer's average tax payment for the group of taxes during the preceding calendar year equaled or exceeded [twenty-five thousand dollars ($25,000)] ten thousand dollars ($10,000):
(1) Group 1: all taxes due under the Withholding Tax Act, the Gross Receipts and Compensating Tax Act, local option gross receipts tax acts, the Interstate Telecommunications Gross Receipts Tax Act and the Leased Vehicle Gross Receipts Tax Act;
(2) Group 2: all taxes due under the Oil and Gas Severance Tax Act, the Oil and Gas Conservation Tax Act, the Oil and Gas Emergency School Tax Act and the Oil and Gas Ad Valorem Production Tax Act;
(3) Group 3: the tax due under the Natural Gas Processors Tax Act; or
(4) Group 4: all taxes and fees due under the Gasoline Tax Act, the Special Fuels Supplier Tax Act and the Petroleum Products Loading Fee Act.
For taxpayers who have more than one identification number issued by the department, the average tax payment shall be computed by combining the amounts paid under the several identification numbers.
B. Taxpayers who are required to make payment in accordance with the provisions of this section shall make payment by one or more of the following means on or before the due date so that funds are immediately available to the state on or before the due date:
(1) electronic payment; provided that a result of the payment is that funds are immediately available to the state of New Mexico on or before the due date;
(2) currency of the United States;
(3) check drawn on and payable at any New Mexico financial institution provided that the check is received by the department at the place and time required by the department at least one banking day prior to the due date; or
(4) check drawn on and payable at any domestic non-New Mexico financial institution provided that the check is received by the department at the time and place required by the department at least two banking days prior to the due date.
C. If the taxes required to be paid under this section are not paid in accordance with Subsection B of this section, the payment is not timely and is subject to the provisions of Sections 7-1-67 and 7-1-69 NMSA 1978.
D. For the purposes of this section, "average tax payment" means the total amount of taxes paid with respect to a group of taxes listed under Subsection A of this section during a calendar year divided by the number of months in that calendar year containing a due date on which the taxpayer was required to pay one or more taxes in the group."
Section 4. Section 7-3-6 NMSA 1978 (being Laws 1969, Chapter 25, Section 1, as amended) is amended to read:
"7-3-6. DATE PAYMENT DUE.--Except for amounts withheld pursuant to the provisions of Section 7-3-12 NMSA 1978, taxes withheld under the provisions of the Withholding Tax Act must be paid on or before the [twenty-fifth day of the month following the month when the taxes were required to be withheld] date established by department regulation. Amounts withheld pursuant to Section 7-3-12 NMSA 1978 must be paid on or before the due date of the return for the pass-through entity."
Section 5. APPLICABILITY.--
A. The provisions of Sections 1 through 3 of this act apply to taxable years beginning on or after January 1, 2006.
B. The provisions of Section 4 of this act apply to taxable years beginning on or after January 1, 2007.
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