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Justo & Jessie Cordova



The IRS adjusted the Taxpayer’s 1999 personal income tax returns, resulting in an increased federal and state tax liability.  In 2003, the IRS notified the Department of the adjustment, and the Department assessed the Taxpayers for their underreported New Mexico income tax, plus penalty and interest from the date the tax was originally due.  The Taxpayers protested, arguing that it was the Department’s responsibility to notify them of the additional liability, and that penalty and interest should not begin to accrue until the date they received the assessment.  Held:  New Mexico law places the duty on taxpayers to correctly report taxes due to the state.  Pursuant to §§ 7-1-67 and 7-1-69, interest and penalty on unpaid taxes are calculated from the original due date of the tax and not from the date the taxpayers receive notice of their liability.  Protest denied.