Instructions Draft For Pit-1 - New Mexico Personal Income Tax Return - 2013 Page 15
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44INTEREST AND PENALTIES
tion of any tax:
Negligence Penalty for Late Filing
INTEREST
or Late Payment. If you file late and
Interest accrues on income tax that
• Falsifies any return, statement, or
owe tax, or if you do not pay your tax
is not paid on or before the due date
other document;
when due, you receive a penalty of 2%
of your return even if you receive an
•
Willfully assists, procures, advises,
of the tax due for each month or part of
extension of time to file.
or counsels the filing of a false re-
a month the return is not filed or the tax
turn, statement, or document;
is not paid, up to a maximum of 20%.
Interest is a charge for the use
• Files any return electronically,
of money and by law cannot be
knowing the information on the
DRAFT 1.2
NOTE: Before January 1, 2008, pen-
waived.
return is not true and correct as to
alty could not exceed 10%. Penalty
every material matter; or
on any principal tax outstanding after
Before January 1, 2008, interest was
• Removes, conceals, or releases
January 1, 2008 continues to accrue
calculated at the statutory rate of 15%
or aids in the removal, conceal-
at a rate of 2% per month or part of a
per year, computed on a daily basis.
ment, or release of any property
month the return is not filed or the tax
Beginning January 1, 2008, interest
10-08-2013
on which levy is authorized by the
is not paid, up to the new maximum
is computed on a daily basis at the
Department is guilty of a felony
of 20%.
rate established for individual income
and subject to criminal penalties.
tax purposes by the Internal Revenue
Upon conviction, criminal penalty
This penalty applies when your failure
Code (IRC).
may be imposed of not more than
to file or pay is because of negligence
$5,000 or imprisonment of not less
or disregard of the rules and regula-
The IRC rate changes quarterly. The
than six months or more than three
tions, but without intent to defraud.
IRC rate for each quarter is announced
years, or both, together with costs
by the IRS in the last month of the
of prosecution.
PENALTIES FOR FRAUDULENT
previous quarter. The annual rate for
RETURNS AND OTHER REASONS
the last two years ranged between 3%
Penalty for Underpayment of Esti-
This section covers civil and criminal
and 4%. The annual and daily interest
mated Tax. If your tax liability for 2013
penalties for fraudulent returns, penal-
rates for each quarter are posted on
is $1,000 or more ($500 or more for tax
ties for underpayments and returned
our website.
years ending before January 1, 2012),
checks, and penalties related to tax
and your 2013 withholding does not
preparers.
IMPORTANT: You do not need to fig-
equal the “Required Annual Payment”
ure the amount of penalty or interest
of (1) 100% of the prior year tax liabil-
Civil Penalties
due on your return. Once your principal
ity, or (2) 90% of the current year tax
In the case of failure to pay when due
tax liability is paid, penalty and interest
liability, you may be subject to penalty.
any amount of required tax with willful
stop accruing. The Department bills
The law provides some exceptions to
intent to evade or defeat any tax, a
you for any penalty or interest due.
the penalty. For more information on
civil penalty of 50% of the tax due is
exceptions, see instructions for the
charged. The minimum penalty is $25.
If you are due a refund, you may be
PIT-ES payment voucher.
entitled to interest on your overpay-
Any person who willfully causes
ment at the same rate charged for
The Department calculates and as-
or attempts to cause the evasion of
underpayments, but only under certain
sesses penalty on underpayment of
another person’s obligation to report
conditions. For 2013 personal income
estimated tax if you have not timely
and pay tax may be assessed a
tax returns, the Department pays no
made the required annual payments.
civil penalty in an amount equal to the
interest if the refund is made within
You may provide additional information
amount of the tax, penalty, and interest
55 days of the date of the claim for
if you believe the penalty to be in error.
attempted to be evaded.
refund, if the interest is less than $1.00,
or if your return cannot be processed.
Penalty for underpayment of estimated
Criminal Penalties
For returns filed for years before the
tax accrues at the same rate as inter-
A person who willfully attempts to
2013 tax year, the Department pays
est on an underpayment of tax. The
evade or defeat any tax or the pay-
no interest if the refund is made within
penalty for underpayment of estimated
ment of the tax is guilty of a felony and
120 days of the date of the claim for
tax may exceed the maximum 20%
upon conviction may be fined between
refund, if the interest is less than $1.00,
that applies to underpayment penalty.
$1,000 and $10,000, or imprisoned
or if your return cannot be processed.
Beginning January 1, 2008, penalty
between one and five years, or both,
For processing to take place, your
on underpayment of estimated tax is
together with costs of prosecution. This
return must show your name and
computed on a daily basis, at the rate
penalty is in addition to other penalties
social security number, and it must be
established for individual income tax
provided by law.
signed. Your return must comply with
purposes by the IRC. See Interest and
all the instructions for the return and
Penalties on the previous page.
Any person who willfully, with intent to
contain all attachments required by
evade or defeat the payment or collec-
the instructions.
PIT-1
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