By Payroll and Entitlements Editorial Staff
New Mexico Gov. Michelle Lujan Grisham has signed legislation that temporarily waives interest and penalties on late income tax payments, and provides that corporate net operating losses follow the federal treatment prior to the CARES Act.
Waived penalties and interest for delayed tax payments. The enacted law provides that no penalty or interest will be assessed for managed audits or certain tax payments due primarily in the second quarter of 2020, as long as the failure to pay was not an intentional attempt to evade the tax. Specifically, no interest will accrue and no penalty will be assessed for the following tax situations:
- failure to pay any corporate income, personal income, or franchise tax that became due April 15, 2020, through July 15, 2020, provided that payment for the unpaid payments is made in full on or before April 15, 2021;
- failure to pay withholding tax that became due March 25, 2020, through July 25, 2020, provided that payment for the unpaid taxes is made in full on or before April 25, 2021; and
tax liabilities assessed between September 3, 2019, and January 3, 2020, as the result of a managed audit performed in accordance with a managed audit agreement, provided that payment for those liabilities is made pursuant to terms of the managed audit agreement on or before December 31, 2020. (Ch. 4 (H.B. 6), Laws 2020, First Special Session, effective June 29, 2020; Press Release, New Mexico Gov. Michelle Lujan Grisham, June 29, 2020).
Interested in submitting an article?
Submit your information to us today!Learn More