New Mexico § 7-1-53 - Enjoining delinquent taxpayer from continuing in business

§ 7-1-53. Enjoining delinquent taxpayer from continuing in business

A. To ensure or to compel payment of taxes and to aid in the enforcement of the provisions

of the Tax Administration Act, the secretary may apply to a district court of this

state to have any delinquent taxpayer or person who may be or may become liable for

payment of any tax enjoined from engaging in business until the delinquent taxpayer

ceases to be a delinquent taxpayer or until the delinquent taxpayer or person complies

with other requirements, reasonably necessary to protect the revenues of the state,

placed on the delinquent taxpayer or person by the secretary. B. Upon application to a court for an injunction against a delinquent taxpayer, the

court may forthwith issue an order temporarily restraining the delinquent taxpayer

from doing business. The court shall hear the matter within fifteen days. Upon written request of the taxpayer, the hearing may be held earlier. Upon a showing by a preponderance of the evidence that the taxpayer is delinquent

and has been given notice of the hearing as required by law, the court may enjoin

the taxpayer from engaging in business in New Mexico until the taxpayer ceases to

be a delinquent taxpayer. Upon issuing an injunction, the court may also order the business premises of the

taxpayer sealed by the sheriff and may allow the taxpayer access thereto only upon

approval of the court. C. Upon application to a court for an injunction against a person other than a delinquent

taxpayer, the court: (1) may issue an order temporarily restraining the person other than the delinquent

taxpayer from engaging in business; (2) shall hear the matter within fifteen days, except that the hearing may be held

earlier if requested in writing by the person who is the subject of the temporary

restraining order; and (3) may without delay issue an injunction to the taxpayer in terms commanding the

person who is the subject of the temporary restraining order to refrain from engaging

in business until that person complies in full with the demand of the department to

furnish security, if there is a showing that: (a) the person who is the subject of the temporary restraining order has been given

notice of the hearing for the injunction as required by law; (b) a demand by the department has been made upon the taxpayer to furnish security; (c) the taxpayer has not furnished security; and (d) the secretary considers the collection from the person primarily responsible for

the total amount of tax due or reasonably expected to become due to be in jeopardy. D. A temporary restraining order or injunction shall not issue by provision of this

section against any person who has furnished security in accordance with the provisions

of Section 7-1-54 NMSA 1978 . Upon a showing to the court by any person against whom a temporary restraining order

or writ of injunction has issued by provision of this section that that person has

furnished security in accordance with the provisions of Section 7-1-54 NMSA 1978 , the court shall dissolve or set aside the temporary restraining order or injunction.