Q: A woman from the NM Tax Office wants Clients addresses to verify out of state sales. Do I have to provide them?

A: In general, businesses are required to maintain records and provide information to state tax authorities to verify tax compliance, including the collection of sales tax on out-of-state sales. However, there are a few important considerations:

1. Verify the request: Ensure that the request is legitimate and coming from an authorized representative of the New Mexico Tax Office. You can contact the tax office directly using official channels to confirm the validity of the request and the identity of the person making it.

2. Scope of the request: Clarify the specific information being requested and the reason for the request. It's unusual for a tax office to request thousands of client addresses at once. They may only need a sample or specific transactions to verify compliance.

3. Client privacy: Consider your clients' privacy and any agreements or policies you have in place regarding the sharing of their personal information. You may need to inform your clients about the request and seek their consent before providing their information to a third party.

4. Legal obligations: Consult with a tax professional or attorney familiar with New Mexico tax laws to understand your legal obligations and rights in this situation. They can help you determine the appropriate actions to take and how to respond to the request.

5. Secure transmission: If you are required to provide the information, ensure that it is transmitted securely to protect your clients' data.

In summary, while businesses are generally required to provide information to verify tax compliance, the specific request for thousands of client addresses at once seems unusual. Verify the request, clarify its scope, consider your clients' privacy, consult with a professional, and ensure secure transmission if required to provide the information.