New Mexico § 7-1-18 - Limitation on assessment by department

§ 7-1-18. Limitation on assessment by department

A. Except as otherwise provided in this section, no assessment of tax may be made

by the department after three years from the end of the calendar year in which payment

of the tax was due, and no proceeding in court for the collection of such tax without

the prior assessment thereof shall be begun after the expiration of such period. B. In case of a false or fraudulent return made by a taxpayer with intent to evade

tax, the amount thereof may be assessed at any time within ten years from the end

of the calendar year in which the tax was due, and no proceeding in court for the

collection of such tax without the prior assessment thereof shall be begun after the

expiration of such period. C. In case of the failure by a taxpayer to complete and file any required return,

the tax relating to the period for which the return was required may be assessed at

any time within seven years from the end of the calendar year in which the tax was

due, and no proceeding in court for the collection of such tax without the prior assessment

thereof shall be begun after the expiration of such period. D. If a taxpayer in a return understates by more than twenty-five percent the amount

of liability for any tax for the period to which the return relates, appropriate assessments

may be made by the department at any time within six years from the end of the calendar

year in which payment of the tax was due. E. If any adjustment in the basis for computation of any federal tax is made as a

result of an audit by the internal revenue service or the filing of an amended federal

return or administrative adjustment request changing a prior election or making any

other change for which federal approval is required by the Internal Revenue Code that

results in liability for any tax, the amount thereof may be assessed at any time,

but not after three years from the end of the calendar year in which filing of a federal

adjustments report is required by Subsections E through J of Section 7-1-13 NMSA 1978 . F. If the taxpayer has signed a waiver of the limitations on assessment imposed by

this section, an assessment of tax may be made or a proceeding in court begun without

regard to the time at which payment of the tax was due. G. As used in this section: (1) “ administrative adjustment request ” means “administrative adjustment request” as used in Section 7-1-13 NMSA 1978; and (2) “ federal adjustments report ” means “federal adjustments report” as used in Section 7-1-13 NMSA 1978 .