On October 15, 2015, the Department denied the Taxpayers’ request for refund regarding an overpayment of New Mexico personal income tax (PIT) in 2008. On November 16, 2015, the Taxpayers filed a formal protest letter. For the 2008 tax year, the Taxpayers were granted an extension of time to file their PIT return. The Taxpayers made an estimated tax payment in April 2009 and filed their return in October 2009. On their return, the Taxpayers claimed a refund, which was granted and paid to them. On their return, the Taxpayers failed to account for their estimated payment, which they could have also claimed for refund. On December 23, 2009, the Department sent a letter to the Taxpayers advising them that there was an overpayment of their PIT for the 2008 tax year. Enclosed with the letter was an application for refund. The Taxpayers filed the application for refund with the Department on or about January 25, 2010. The Taxpayers consulted with an accountant, who recommended that they file an amended PIT return for 2008. The Taxpayers filed the amended return requesting a refund with the Department on or about October 17, 2010. The Department took no action on either of the Taxpayers claims for refund. In 2015, the Taxpayers contacted the Department about the status of their refund claim. The Department employee saw that the money was still there and advised the Taxpayers to file another claim for refund. On October 8, 2015, the Taxpayers filed another claim for refund for the 2008 tax year. The Department denied the claim based on the statute of limitations. Pursuant to Section 7-1-26 (D) NMSA 1978, all claims for refund must be filed within three years of the end of the calendar year in which the payment was originally due. The final date for the Taxpayers to file a claim for refund in this situation was December 31, 2012. The Department is barred by statute from acting on any claim for refund that is beyond the statute of limitations. The Taxpayers’ protest was denied.
David and Kristine Greig