Inquiry Response & Tax Relief B-100.35 in Spanish Available

The following is from the Tax Information and Policy Office and was sent out last evening from Taxation & Revenue Department Secretary Stephanie Schardin-Clarke

There has been a lot of back-and-forth in TRD about applicability of the penalty and interest relief enacted during the special session to tax returns with an October 15, 2020 extension date. See below for the outcome.

We have received an inquiry about individuals requesting extensions now that the July 15, 2020 postponed date is so close. They are curious if they qualify for the tax waiver of penalty and interest from this legislative special sessions house bill 6. We have also been able to update the Spanish version of B-100.35 -Tax Relief for COVID-19 (Extension) - Spanish Version. You can locate the updated document in the banner here: http://www.tax.newmexico.gov/ or on our website here: http://www.tax.newmexico.gov/forms-publications.aspx in the Publications/Bulletins/100 Series-General Information folder.

 

Please, see our following response to this question.

 

If an individual receives an income tax return filing extension for the 2019 tax year and the original return due date was from April 15, 2020 through July 15, 2020, then they qualify for the penalty and interest relief in HB6 (2020 special session). This relief allows the taxpayer to pay the tax due in full on or before April 15, 2021 without accruing penalty and interest if the taxpayer’s return is filed on or before the extension date.

 

If the taxpayer with the extension does not file their return by the extension date or pay tax due in full by April 15, 2021 the taxpayer does not qualify for the penalty and interest relief. Interest will be due from the day after the original due date of the return and penalty will be due starting the day after the approved extension date. 

 

For example, for a return that was originally due July 15, 2020 that received an extension to file a return for October 15, 2020. The taxpayer must file a return on or before October 15, 2020 and pay by April 15, 2021. If the return or payment are not filed on time, interest will be due from July 16, 2020 and penalty will be due starting October 16, 2020.