The Department assessed penalty and interest for late filing and paying of the Taxpayers’ 2021 personal income tax (PIT) return. The Taxpayer filed the 2021 PIT return, due in 2022, in July 2023 but did not make payment. The Department sent notice of assessment and demand for payment, and in January 2024 the taxpayer paid the principal tax and protested the civil penalty, interest, and underpayment penalty. The Taxpayers argued that they relied on tax preparation software and showed evidence that their federal return was filed in 2022. The Taxpayers did not provide any proof filing of the New Mexico PIT return, payment of tax, or payment of estimated payments were timely. The protest was denied.
