New Mexico Warrant of Levy Checklist
What This Document Is
A warrant of levy from the New Mexico Taxation and Revenue Department is a legal order that authorizes the state to seize money directly from your bank accounts to satisfy unpaid state taxes. This is not a warning or a preliminary notice—the warrant of levy is the actual enforcement mechanism that allows the state to take possession of your funds.
Why You Received This Warrant
The New Mexico Taxation and Revenue Department issues a warrant of levy after you have failed to pay assessed state taxes following prior assessment and demand for payment. Earlier attempts to collect the debt were unsuccessful, and the warrant represents an advanced collection action taken under the authority of the Tax Administration Act against a delinquent taxpayer.
What Happens Next
The state will serve the warrant of levy on your bank or any other person or entity holding your funds. Upon receiving the warrant of levy, the financial institution must immediately survey all accounts in your name and surrender the funds to the Department up to the amount owed.
Banks freeze the funds and transfer them to the state once service occurs. Seized amounts will be applied to your unpaid taxes, plus any accumulated penalties and interest.
Your Rights and Exemptions
New Mexico law provides limited exemptions from levy under state statute. You are entitled to keep money or property with a total value not exceeding one thousand dollars.
Wage levies through your employer protect the greater of two amounts: seventy-five percent of your disposable earnings for any pay period, or an amount each week equal to forty times the minimum wage rate under New Mexico law. Disposable earnings mean the part of your wages or salary remaining after amounts required by law to be withheld are deducted.
Steps to Take Immediately
Step 1: Read the Warrant Completely
Document the following information from the warrant:
● Write down the date you received the warrant.
● Note the tax period or year the warrant addresses.
● Record the total dollar amount of the debt listed.
● Identify any deadline or date mentioned in the warrant.
● Copy the Department contact information shown on the warrant.
Step 2: Gather Your Records
Locate copies of any tax returns you filed for that year and proof of any payments you made. Organize these documents by date for reference when you contact the Department.
Contact the Department
Call the phone number listed on your warrant of levy and provide your name and any account or reference number shown on the warrant. Ask the Department representative these specific questions:
- Ask when the levy will be executed or whether it has already been served on your bank.
- Request the exact breakdown of your debt, including original tax, penalties, and interest.
- Inquire whether you can set up a payment plan and if that will affect the current levy.
- Determine whether an appeal or protest process is available to you as a delinquent taxpayer.
- Confirm which funds in your account are protected under state law from seizure of property.
Take detailed notes during your call, including the representative’s name, the date, and the time of your conversation.
Understanding Payment Plans
When you are on a payment plan with the Taxation and Revenue Department, the Department does not actively seek collection. However, official guidance does not explicitly state that payment plans halt existing levies or prevent new warrant levies from being initiated.
Defaulting on a payment plan agreement by missing payments, making late payments, or establishing new tax debt causes the Department to resume collection actions, including the seizure of property. Short-term payment plans allow you twelve or fewer months to pay off your tax debt without filing a tax lien.
Installment agreements are formal written agreements that allow you up to seventy-two months to pay tax debts, but require a tax lien to be filed on the balance or acceptable security to be posted before the Department grants the agreement.
Verify the Debt Amount
Compare the debt amount shown on the warrant with your own records. Check whether you filed a tax return for the year in question and determine whether you made any payments toward this tax liability.
Prepare copies of any documentation that supports your position if you believe the debt is incorrect or partially incorrect. Filed returns, payment receipts, or correspondence from the Department acknowledging your payments serve as evidence to support your claim regarding funds seized.
Monitor Your Accounts
Check your bank accounts regularly after receiving the warrant and look for any holds, freezes, or withdrawals initiated by the Taxation and Revenue Department. Contact the Department immediately if funds are seized to confirm the amount taken and to ask what your remaining balance is after the levy, especially if the state has asserted an interest in the property or other assets.
Common Errors to Avoid
Do not assume the warrant is merely a warning or that you have additional time before action is taken. Moving money out of your accounts in an attempt to avoid the levy does not stop the collection process. It may lead to additional enforcement actions, including seizure of real property or other assets.
Ignoring follow-up communications from the Department after you receive the warrant eliminates your opportunity to resolve the situation. Failing to keep copies of any documents you send to the state or records of your phone conversations with Department representatives leaves you without proof of your actions.
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
