New Mexico Sales Tax Guide
Chapter 7: How to manage late New Mexico sales tax return filing
Hopefully you don't need to worry about this chapter because you're getting your New Mexico gross receipts tax filing and remittance done on time and submitted without incident. However, in the real world, mistakes happen. In this chapter, we'll talk about how to avoid costly penalties and fines if you've missed your assigned filing deadline.What do I do if I missed my New Mexico gross receipts tax filing deadline?
The first thing to do is get your return filed. This is definitely one of those situations where things are "better late than never." As long as you don't submit your tax filing paperwork, or hold on to the tax dollars you've collected, you may be accruing fines and interest. It's always best to get your filing done and deal with any penalties and interest payments later.What penalties and interest payments are imposed by the New Mexico Taxation and Revenue Department?
In the event that you miss the filing deadline for New Mexico sales tax, penalties are calculated at 2% per month (or partial month). Penalties are limited to 20% of the unpaid principal of tax due.
Interest accrues daily on the unpaid principal of tax due. Interest rates can change on a quarterly basis.
It should be noted that interest accrues on tax that isn’t paid on or before your assigned due date even if the New Mexico Department of Taxation grants you an filing extension. By law, interest cannot be waived.If I acquire a business, am I responsible for any outstanding gross receipts tax debts, penalties, and interest?
Yes! If you are acquiring a business, it is strongly recommended that you contact the New Mexico Taxation and Revenue Department and inquire about the current state of the potential acquisition. Once you've purchased the business, you will be held responsible for any and all outstanding New Mexico sales and use tax liability.