New Mexico § 7-1-67 - Interest on deficiencies

§ 7-1-67. Interest on deficiencies

A. If a tax imposed is not paid on or before the day on which it becomes due, interest

shall be paid to the state on that amount from the first day following the day on

which the tax becomes due, without regard to any extension of time or installment

agreement, until it is paid, except that: (1) for income tax imposed on a member of the armed services of the United States

serving in a combat zone under orders of the president of the United States, interest

shall accrue only for the period beginning the day after any applicable extended due

date if the tax is not paid; (2) if the amount of interest due at the time payment is made is less than one dollar

($1.00), then no interest shall be due; (3) if demand is made for payment of a tax, including accrued interest, and if the

tax is paid within ten days after the date of the demand, no interest on the amount

paid shall be imposed for the period after the date of the demand; (4) if a managed audit is completed by the taxpayer on or before the date required,

as provided in the agreement for the managed audit, and payment of any tax found to

be due is made in full within one hundred eighty days of the date the secretary has

mailed or delivered an assessment for the tax to the taxpayer, no interest shall be

due on the assessed tax; (5) when, as the result of an audit or a managed audit, an overpayment of a tax is

credited against an underpayment of tax pursuant to Section 7-1-29 NMSA 1978 , interest shall accrue from the date the tax was due until the tax is deemed paid; (6) if the department does not issue an assessment for the tax program and period

within the time provided in Subsection D of Section 7-1-11.2 NMSA 1978 , interest shall be paid from the first day following the day on which the tax becomes

due until the tax is paid, excluding the period between either: (a) the one hundred eightieth day after giving a notice of outstanding records or

books of account and the date of the assessment of the tax; or (b) the ninetieth day after the expiration of the additional time requested by the

taxpayer to comply pursuant to Section 7-1-11.2 NMSA 1978 , if such request was granted, and the date of the assessment of the tax; and (7) if the taxpayer was not provided with proper notices as required in Section 7-1-11.2 NMSA 1978 , interest shall be paid from the first day following the day on which the tax becomes

due until the tax is paid, excluding the period between one hundred eighty days prior

to the date of assessment and the date of assessment. B. Interest due to the state under Subsection A or D of this section shall be at the

underpayment rate established for individuals pursuant to Section 6621 of the Internal Revenue Code computed on a daily basis; provided that if a different rate is specified by a compact

or other interstate agreement to which New Mexico is a party, that rate shall be applied

to amounts due under the compact or other agreement. C. Nothing in this section shall be construed to impose interest on interest or interest

on the amount of any penalty. D. If any tax required to be paid in accordance with Section 7-1-13.1 NMSA 1978 is not paid in the manner required by that section, interest shall be paid to the

state on the amount required to be paid in accordance with Section 7-1-13.1 NMSA 1978 . If interest is due under this subsection and is also due under Subsection A of this

section, interest shall be due and collected only pursuant to Subsection A of this

section.