On April 15, 2007, the Taxpayer filed a New Mexico personal income tax return for tax year 2006 that showed tax due to the Department. The Taxpayer submitted her payment with the return. The Department determined that the Taxpayer failed to claim a low to mid income exemption which would have resulted in a refund. The Department issued a refund to the Taxpayer. On May 13, 2011, the Taxpayer filed an application for refund, for tax year 2006, for the amount of the payment she made with her personal income tax return. The Department sent a letter to the Taxpayer denying the claim for refund because the application for refund was not filed within three years of the calendar year in which payment was due. The Taxpayer filed a protest to the denial. At the hearing, the Taxpayer argued that the Department waited until the end of the statute of limitations to give her notice that she could claim a refund, and because of personal matters, she was unable to complete the application at that time. The Department argued that the refund could not be issued because it was barred by the statutory limitations set forth in Section 7-1-26 NMSA 1978. That section of law does not allow for exceptions. The Taxpayer’s protest was denied.
Yvonne C. Gomez