Satya Deb Misra



The Taxpayer was a partner in a business that owned and operated a New Mexico motel.  In May 1985 the Taxpayer dissolved the partnership. In June 1992 the Taxpayer was notified that his 1991 New Mexico income tax refund had been applied to outstanding CRS assessments against the partnership. In 1994 the Taxpayer filed a 1993 personal income tax return but failed to remit payment of the tax due because he believed that his 1991 refund had been unlawfully applied to the CRS liability of his former company. The Department assessed the Taxpayer for the tax, plus penalty and interest.  In 1996 the Taxpayer filed a claim for refund which covered a number of CRS payments, the applied 1991 refund and penalty and interest on the 1993 assessment. The claim for refund was denied and the Taxpayer filed a protest. The Department subsequently granted part of the Taxpayer’s refund claim, leaving the Taxpayer’s 1991 tax refund and penalty and interest on his 1993 personal income taxes still in dispute. Held: The Taxpayer’s claim for refund of the 1991 refund is barred by the limitations period set out in Section 7-1-26 NMSA 1978. The Taxpayer is also liable for the penalty and interest assessed for late payment of his 1993 personal income taxes.  Protest denied.