New Mexico Hearing Office Finds Taxpayer Cannot Carryforward Revised Closed Year NOLs

The New Mexico Administrative Hearing Office (AHO) denied the taxpayer’s protest, finding the Taxation and Revenue Department lacked statutory authority to accept revised net operating loss (NOL) information that conflicted with reported loss year amounts in closed years. The taxpayer revised its NOL carryforward on a timely filed amended corporate income tax return. The revision was based on corrected apportionment factors for loss years closed to amendment by the statute of limitations. The Department adjusted the return to reflect the unadjusted NOL as originally reported and the taxpayer protested. The AHO determined that an NOL carryover is a return-based tax ...