New Mexico charged me tax I shouldn't owe. What can I do about it?
I keep getting tax bills from the N.M. Taxation & Revenue Dept. telling me I owe tax. They even send me threats about filing a lien or seizing my property. I have no idea why this is happening or what to do about it.
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At some point you probably received an audit letter (Notice of Intent to Assess or Notice of Limited Scope Audit) but didn't respond by the audit response deadline passed and the department charged you the amount of tax, penalty and interest proposed on the audit notice. Or maybe you did participate in the audit but were were not able to prove some of your income was not subject to tax and later have been able to obtain stronger proof. Here's how can you use that newly obtained proof to reduce your tax.
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Request an abatement
If you believe you shouldn't owe the tax and have what you believe may be acceptable proof, you can request an abatement (reduction of the tax). That is a process in which, just like responding to the initial audit, you submit proof that you shouln't have bee charged the tax. If the the abatement takes place, it will also include the penalty and interest related to the tax.
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Stop a lien or levy
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You can stop a lien being filed, avoid a levy or, if you have already been levied, stop more from happening, by entering into a payment plan for what you owe. If the abatement is approved, you and request a new payment plan for a reduced amount.
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