If you have tax trouble in New Mexico, your financial problems can impact your entire life. It can be hard to get control of your money when you owe taxes to the State. You can take steps to fix your problem whether you’re facing back taxes, overdue payments, or can’t pay your most recent tax bill. Learn about New Mexico state tax relief programs that can help you regain control of your life.

What Are Tax Collections?

New Mexico will send you notices in the mail if you don’t pay your tax bill in full. When you receive this notice, you can settle your account by paying what you owe. If you’re not able to pay, you can get in touch with the state tax agency to explain your situation. These steps will help keep your account in good standing.

If you don’t pay your bill or contact the TRD agency after receiving the final notice from IRS, the state of New Mexico will start enforcing collections. There are several different collection tools the state may use. If you keep missing payments, the state will move to more intense methods. Keep reading to learn about the different types of tax collections.

What Happens When the IRS Sends Your Account to Collections?

Collection agencies are businesses that collect money and overdue payments. Electric companies, car dealerships, and other companies work with collection agencies to collect overdue payments. The State of New Mexico will also send your account to collections if you don’t pay your taxes.

The State usually sends you to collections after you ignore several notices about your taxes. Once a collection agency is involved, you may be charged collection fees on top of your back taxes.

What Are Tax Levies?

When you don’t pay your taxes, the State may place a levy on your property, accounts, and other assets. Physical assets like your home and car may be levied. When your property is under a levy, it can be sold by the State to pay off your taxes.

The State can also place an order to withhold personal income tax from your paycheck. This wage levy means that New Mexico is pulling your back taxes directly from your pay. 

What Are Tax Liens?

A New Mexico tax lien is a public notice of your liability to the state. This notice reports your failure to pay your taxes. Liens are public information and can hurt your credit rating. If you have a lien on your record, it will be released once you pay your back taxes.

How To Get Tax Relief In New Mexico

When you start getting tax notices or are put into tax collections, it’s time to make a tax relief plan. Tax relief can help stop the collections process and let your life go back to normal. The IRS Tax Relief Network can help you solve your tax problem with some simple strategies. Learn about these options and start making your plan.

Payment Agreement

If you can’t pay your full tax amount, you might be able to make a compromise with the State of New Mexico. The State would rather receive some of the money you owe rather than none of it. You can request a payment plan to help you pay your tax bill over time.

If the State agrees to a payment plan, you may still face liens and other collection methods. It’s important to stick to your agreement so you’re not charged other fees or collections for non-payment.

How Do You Protest Taxes?

You are legally allowed to protest actions that the State takes against you, so long as you make your protest on time. There are two ways to file a tax protest in New Mexico. 

You can file a written protest with the Secretary of the TRD. You don’t need to make a payment to protest this way. 

You can also pay your tax bill and then file for a refund. 

You can only choose one way to protest. The IRS Tax Relief Network can help you decide which protest method is best for you.

Tax Relief Representation

State taxes are complicated, but you don’t need to work with the TRD by yourself. You can choose a representative to work with the State for you. Accountants, attorneys, and enrolled income tax agents can represent you. There’s no need to file any special paperwork. Get in touch with the IRS Tax Relief Network to learn more about tax relief representation.

What Are CRS Taxes In New Mexico?

CRS taxes are business taxes that must be paid by any person or company doing business in New Mexico. CRS stands for Combined Reporting System. When you start a business, you should file for a New Mexico tax identification number. You’ll use this number to file your state and local option gross receipts tax, compensating tax, and New Mexico withholding tax.

New Mexico businesses must pay taxes. If you own a business, these taxes are separate from your personal income taxes. Business tax relief can help your company if you owe back taxes or can’t pay your current bill. Contact the IRS Tax Relief Network for more information.