The Taxpayer filed a timely New Mexico personal income tax return for the 2007 tax year. In 2010, the Taxpayer was audited by the IRS. As a result, her federal return was adjusted and the Taxpayer had an additional tax liability. The Taxpayer did not file an adjusted New Mexico return, and did not realize that the federal adjustment was required to be reported to the state. On September 20, 2013, the Department assessed the Taxpayer for personal income tax, penalty and interest for the tax period ending on December 31, 2007. The Taxpayer filed a protest to the assessment. The Taxpayer does not dispute that she owed additional tax, and paid the tax after receiving the assessment. The Taxpayer’s protest is in regard to the penalty and interest, which she argued were inappropriate because the Department did not assess her until 2013. The Department had three years from the end of the calendar year in which the amended return should have been filed in which to make the assessment. It is the Taxpayer’s responsibility to file any necessary returns, including an amended return after a change to a federal return. The Department’s assessment was timely, and the Taxpayer’s failure to file a required amended return is negligent for purposes of penalty. The Taxpayer’s protest was denied.