New Mexico Final Notice / Intent to Levy or Enforce Checklist
Understanding the Notice
A Final Notice Before Seizure is a formal letter from the New Mexico Taxation and Revenue Department stating that the state plans to collect unpaid taxes, penalties, and interest through enforcement action. This notice arrives after earlier payment requests have passed without response or payment.
Receiving this notice means the state is preparing to issue a warrant of levy, which authorizes seizure of your bank accounts, wages, or other property. The notice does not mean your accounts have already been frozen or that all options for response have closed.
Why New Mexico Sends This Notice
The state sends a Final Notice Before Seizure when a tax debt remains unpaid after the Notice of Assessment and Demand for Payment under Section 7-1-17 NMSA 1978 has been mailed. This situation occurs when you owe taxes on a return you filed late, file a return showing taxes owed that you do not pay, or do not file a required return at all.
As the final administrative warning, the notice precedes the Department’s issuance of a warrant of levy under Section 7-1-31 NMSA 1978. A warrant of levy serves as the actual legal instrument that authorizes collection through seizure of property or rights to property.
What Happens If You Ignore This Notice
If you do not respond to the Final Notice Before Seizure by the deadline, New Mexico will proceed to issue a warrant of levy. The department serves this warrant on financial institutions, employers, or other third parties who hold your property or owe you money.
A levy made by warrant of levy authorizes the department to take possession of property, garnish wages, or freeze bank accounts. Penalties and interest continue to accrue on the unpaid balance throughout the collection process.
Critical Actions After Receiving the Notice
You must read the entire notice immediately and document specific information. Record the following details on paper or in a secure file:
- Record the tax year or years the debt covers.
- Note the total amount owed, including taxes, penalties, and interest.
- Write down the letter ID number shown on the notice.
- Document the date the notice was mailed.
- Copy any reference number or case identification.
- Save the contact information provided for questions.
Keep the original notice and the envelope it arrived in with your other tax documents. Do not discard these materials before resolving the matter.
Verifying the Debt
Check your personal tax records to confirm whether you owe the amount stated. Look for any return you filed for the tax year mentioned, pay stubs or income statements from that year, and records of any payments you made toward this debt.
Contact the New Mexico Taxation and Revenue Department to request copies of what appears in their records for your taxpayer identification number. If you believe the debt is incorrect or not yours, write down the specific reason and gather documentation that supports your position.
Understanding Your Protest Rights
New Mexico law provides a formal protest procedure under Section 7-1-24 NMSA 1978, but this right must be exercised within ninety days of receiving the Notice of Assessment and Demand for Payment. If you did not file a written protest within that ninety-day period after the original assessment notice, you are deemed to have waived the right to protest the assessment under New Mexico law.
At the Final Notice Before Seizure stage, your protest rights regarding the underlying tax assessment may have already expired. You may still protest a warrant of levy on limited grounds, such as denial of a prior right to property that was levied.
Filing a Formal Protest
If you are still within the ninety-day period from the assessment notice, you must file a formal written protest using Form ACD-31094. Your protest must identify the taxpayer and tax involved, state the grounds for protest with a summary of supporting evidence, and state the affirmative relief requested.
You can file through the Taxpayer Access Point at tap.state.nm.us or by mailing it to the Taxation and Revenue Department Protest Office. Properly filed protests receive hearings conducted by the Administrative Hearings Office.
Payment Plan Options
New Mexico offers two types of payment arrangements depending on your circumstances.
Short-term payment plans allow twelve months or less to pay off taxes, and the department typically sets up these plans without filing a lien.
Installment agreements allow up to seventy-two months to pay taxes. Still, this type of agreement requires the department to file a lien or obtain acceptable security before granting the agreement. Payment plans are discretionary, not automatic, and the Department may proceed with collection enforcement while you negotiate unless a formal written agreement is executed.
Contacting the Department
Call or write to the New Mexico Taxation and Revenue Department using the contact information in the notice. Tell them you received a Final Notice Before Seizure and state your situation clearly.
Ask about available options, whether a payment plan is possible for your circumstances, and how to submit a written response if needed. Document the name of the person you speak with, the date of the call, and any advice or options they describe.
What Collection Enforcement Involves
When the department issues a warrant of levy, it serves the warrant on third parties holding your property. Financial institutions must surrender funds from checking accounts, savings accounts, and certificates of deposit when they receive a warrant of levy.
Employers must withhold wages according to the levy terms. The department may also seize real property through personal service of the warrant on you and recording a copy with the county clerk.
Monitoring Your Accounts
Watch for unexpected deductions from your paycheck or holds on your bank account while this matter is pending. If collection action occurs, contact the New Mexico Taxation and Revenue Department immediately to confirm that the action relates to the debt stated in the notice.
Keep copies of all correspondence, payment records, and notices you receive. Organize these documents by date and maintain them even after the matter is resolved.
Received a State Tax Notice?
If you’ve received a state tax notice and aren’t sure how to respond, we can help you review your options and next steps.
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This checklist is for educational purposes only and does not constitute tax or legal advice. Always review official IRS instructions and consult a qualified professional for guidance
