A Late September Tax Filing Deadline for New Mexico Taxpayers in Federal Disaster Areas
On August 4, 2022, the Internal Revenue Service (IRS) updated its May 10 grant of New Mexico disaster relief, adding two affected counties and extending the tax relief.
On August 10, 2022, the New Mexico Taxation and Revenue Department updated its relief to conform to the IRS changes.
The tax relief applies to individuals who live in, businesses whose principal place of business is in, and anyone whose necessary tax records are in one of seven New Mexico counties.
You do not have to be a victim of the disaster to qualify.
Federal relief grants an extension of the time to file and the time to pay the tax for individual, corporate, and estate and trust income tax returns; partnership returns, S corporation returns, and trust returns; 2022 estimated income tax payments; estate, gift, and generation-skipping transfer tax returns; annual information returns of tax-exempt organizations; and employment and certain excise tax returns, that have either an original or extended due date occurring on or after April 5, 2022, and before September 30, 2022.
The extended due date is September 30, 2022.
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This September 30 extended date also applies to many “acts,” including certain IRA rollovers, the 2021 IRA contribution, like-kind exchange relief, and a long list of other “acts.”
New Mexico similarly extends the filing and payment deadline to September 30, 2022 for Personal Income Tax and Corporate Income Tax returns, for taxpayers in the seven counties, for returns due between April 5 and September 30.
For New Mexico business taxes, the August 10 press release published by the New Mexico Taxation and Revenue Department provides:
“Taxpayers required to file under other New Mexico programs, including gross receipts, compensating and withholding tax, oil and gas taxes, combined fuel tax, and other excise taxes, with due dates that fall between May 25, 2022, and September 25, 2022, also now have until September 25, 2022, to file.”
WHICH NEW MEXICO COUNTIES ARE CURRENT FEDERAL DISASTER AREAS?
The following seven counties are listed as official federal disaster areas in New Mexico:
- Colfax County
- Lincoln County
- Los Alamos County
- Mora County
- Sandoval County
- San Miguel County
- Valencia County
Penalties for the late filing of taxes are being waived if received by the extended deadline. Interest for taxes due will also not accrue on payments received by the new deadline.
However, relief for federal payroll and excise tax deposits only applies to deposits due on April 5 and before April 20 and that were paid by April 20, 2022.
Per the IRS’s May 10, 2022, notice on the disaster tax relief,
“If an affected taxpayer receives a late filing or late payment penalty notice from the IRS that has an original or extended filing, payment or deposit due date that falls within the postponement period, the taxpayer should call the telephone number on the notice to have the IRS abate the penalty.”
A NOTE FOR FILING YOUR TAXES IF YOU ARE IN A NEW MEXICO WILDFIRE FEDERAL DISASTER AREA:
- If filing an electronic tax return in New Mexico, you must send a letter noting your extension status as an affected taxpayer to the New Mexico Taxation and Revenue Department, P.O. Box 5418, Santa Fe, New Mexico, 87502-5418.
- If filing a paper tax return in New Mexico, you must write “Wildfire Extension” at the top of your return(s) before mailing.
More information can be found in New Mexico Tax Bulletin 100.42.
Contact the trusted tax advisors at REDW. We are ready to help you navigate your tax return and extension so you can keep your attention where it matters. Reach out to Senior Tax Manager Carl D. Harper, CPA, or Principal James A. Ortiz, State and Local Tax.