Q: Can state of NM come after tax debt 10 years later?
My husband use to live in NM and now lives in texas. Last month we received a letter from the state saying they were putting a lien on our house for a $13000 unpaid tax debt from 2013. My husband said he didn't even file taxes that year but the state claims he did and also claims he made a signficant amount more than he would have even made. They have the one w-2 from that year for $77,000 and taxed him on $266000 They told me if I can get federal transcripts that proved otherwise they would reduce the taxable amount. The IRS only has transcipts for 10 year back. Can they legally even do this? How can I adjust this or fight it?
A:
It sounds like you are in a challenging situation with the New Mexico tax authorities. Here are a few key points and suggestions:
1. Statute of limitations: Generally, states have a limited time period to assess and collect taxes, known as the statute of limitations. For New Mexico, the statute of limitations for assessing taxes is 7 years from the end of the calendar year in which the return was filed. However, if no return was filed, there is no time limit for the state to assess taxes.
2. Burden of proof: The burden of proof is typically on the taxpayer to demonstrate that the state's assessment is incorrect. You'll need to gather as much documentation as possible to support your position, such as W-2s, 1099s, bank statements, or other financial records from 2013.
3. Request a hearing: You have the right to request a hearing or conference with the New Mexico Taxation and Revenue Department to dispute the assessment. This will give you an opportunity to present your case and any supporting documentation.
4. Seek professional help: Given the complexity of your situation and the amount of money involved, it may be wise to consult with a tax attorney or certified public accountant (CPA) who specializes in tax controversies. They can help you navigate the process and represent your interests.
5. Negotiate a settlement: If you are unable to fully dispute the assessment, you may be able to negotiate a settlement with the state, such as an offer in compromise or an installment payment plan.
Remember, while the IRS may only have transcripts going back 10 years, you may still be able to obtain copies of your 2013 federal tax return and supporting documents from your tax preparer or financial institutions. These documents could be helpful in challenging the New Mexico tax assessment.
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