What is the process for contesting a tax audit?

Contesting a tax audit with the New Mexico Taxation and Revenue Department involves several steps. First, it is important for the taxpayer to carefully review the audit findings and the supporting documentation provided by the department. This review should include understanding the specific areas where discrepancies were found and the regulations or laws that apply. After this initial review, if the taxpayer disagrees with the audit conclusions, the next step is to formally respond. The taxpayer can do this by submitting a written protest to the Audit Bureau of the New Mexico Taxation and Revenue Department. This protest should clearly outline the reasons for contesting the audit results and include any relevant documentation that supports the taxpayer's position. It is advisable to include specific factual details, references to applicable laws, and any other evidence that could help substantiate the case. The written protest must typically be submitted within a designated period after the taxpayer receives the audit findings, so it is important to be aware of these timelines. Following the submission of the protest, a hearing may be scheduled where the taxpayer can present their case. During this hearing, the taxpayer can explain their position in detail and address any questions from the auditor or the hearing officer. It is also important to note that the New Mexico Taxation and Revenue Department has established procedures and guidelines for appeals, and utilizing these resources can be beneficial. The taxpayer may wish to review the New Mexico Taxation and Revenue Department's website for detailed information regarding the contesting process and any forms that may be needed. This will provide guidance on the necessary steps and requirements, ensuring that the taxpayer is adequately prepared for the process.