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AN ACT

RELATING TO TAX ADMINISTRATION; AUTHORIZING THE SECRETARY OF

TAXATION AND REVENUE TO EXTEND TIME TO FILE INCOME TAX

RETURNS; REQUIRING CERTAIN TAX PREPARERS TO FILE RETURNS

ELECTRONICALLY; PROVIDING A PENALTY.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

Section 1. 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. When the

filing of a tax return or payment of a tax is accomplished by

mail, the date of the postmark shall be considered the date of

submission of the return or payment.

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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, the 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. The secretary by

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regulation may also provide for the automatic extension for no

more than six 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 ensure 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 2. A new section of the Tax Administration Act

is enacted to read:

"TAX RETURN PREPARER--ELECTRONIC FILING REQUIREMENT--

PENALTY.--

A. In taxable years beginning on or after January

1, 2008, a tax return preparer who prepares over twenty-five

personal income tax returns for a taxable year shall ensure

that each return is submitted to the department by a

department-approved electronic media, 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 rule.

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 3. APPLICABILITY.--The provisions of Section 1

of this act apply to taxable years beginning on or after

January 1, 2007.

Section 4. EFFECTIVE DATE.--The effective date of the

provisions of this act is July 1, 2007.

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