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Peter Sinclaire and Elizabeth Durston



Taxpayers received Department notification in September 2008 of an overpayment on their 2004 personal income tax return including a blank application for refund requiring that it be completed and returned. Taxpayers completed and delivered the application on February 5, 2009. The refund was denied as it was requested late. NMSA 1978, §7-1-26 requires that a claim for refund must be filed within three years from the end of the calendar year in which the payment was due. A refund request for 2004 personal income tax, due in 2005 must be requested in 2008.  Taxpayers protested claiming they had not received the instructions to the application for refund; that a Department employee indicated completion of the refund application was unnecessary; and Taxpayers could apply the refund to 2008 taxes. The issue is whether the Taxpayers are entitled to a refund and whether estoppel should be applied against the Department.  Taxpayers’ reliance on a Department employee’s oral representations was not determinative in this case.  The Taxpayers protest is denied.