New Mexico § 7-1-10 - Records required by statute; taxpayer records; accounting methods; reporting methods; information returns

§ 7-1-10. Records required by statute; taxpayer records; accounting methods; reporting methods; information returns

A. Every person required by the provisions of any statute administered by the department

to keep records and documents and every taxpayer shall maintain books of account or

other records in a manner that will permit the accurate computation of state taxes

or provide information required by the statute under which the person is required

to keep records. B. Methods of accounting shall be consistent for the same business. A taxpayer engaged in more than one business may use a different method of accounting

for each business. C. Prior to changing the method of accounting in keeping books and records for tax

purposes, a taxpayer shall first secure the consent of the secretary or the secretary's

delegate. If consent is not secured, the department upon audit may require the taxpayer to

compute the amount of tax due on the basis of the accounting method earlier used. D. Prior to changing the method of reporting taxes, other than for changes required

by law, a taxpayer shall first secure the consent of the secretary or the secretary's

delegate. Consent shall be granted or withheld pursuant to the provisions of Section 7-4-19 NMSA 1978 . If consent is not secured, the secretary or the secretary's delegate upon audit

may require the taxpayer to compute the amount of tax due on the basis of the reporting

method earlier used. E. Upon the written application of a taxpayer and at the sole discretion of the secretary

or the secretary's delegate, the secretary or the secretary's delegate may enter into

an agreement with a taxpayer allowing the taxpayer to report values, gross receipts,

deductions or the value of property on an estimated basis for gross receipts and compensating

tax, oil and gas severance tax, oil and gas conservation tax, oil and gas emergency

school tax and oil and gas ad valorem production tax purposes for a limited period

of time not to exceed four years. As used in this section, “ estimated basis ” means a methodology that is reasonably expected to approximate the tax that will

be due over the period of the agreement using summary rather than detail data or alternate

valuation applications or methods, provided that: (1) nothing in this section shall be construed to require the secretary or the secretary's

delegate to enter into such an agreement; and (2) the agreement must: (a) specify the receipts, deductions or values to be reported on an estimated basis

and the methodology to be followed by the taxpayer in making the estimates; (b) state the term of the agreement and the procedures for terminating the agreement

prior to its expiration; (c) be signed by the taxpayer or the taxpayer's representative and the secretary or

the secretary's delegate; and (d) contain a declaration by the taxpayer or the taxpayer's representative that all

statements of fact made by the taxpayer or the taxpayer's representative in the taxpayer's

application and the agreement are true and correct as to every material matter. F. The secretary may, by regulation, require any person doing business in the state

to submit to the department information reports that are considered reasonable and

necessary for the administration of any provision of law to which the Tax Administration

Act applies.