A. It is unlawful for any person other than the taxpayer to reveal to any other person the taxpayer's return or return information, except as provided in Sections 7-1-8.1 through 7-1-8.11 NMSA 1978.

B. A return or return information revealed under Sections 7-1-8.1 through 7-1-8.11 NMSA 1978:

(1) may only be revealed to a person specifically authorized to receive the return or return information and the employees, directors, officers and agents of such person whose official duties or duties in the course of their employment require the return or return information and to an employee of the department;

(2) may only be revealed for the authorized purpose and only to the extent necessary to perform that authorized purpose;

(3) shall at all times be protected from being revealed to an unauthorized person by physical, electronic or any other safeguards specified by directive by the secretary; and

(4) shall be returned to the secretary or the secretary's delegate or destroyed as soon as it is no longer required for the authorized purpose.

C. If any provision of Sections 7-1-8.1 through 7-1-8.11 NMSA 1978 requires that a return or return information will only be revealed pursuant to a written agreement between a person and the department, the written agreement shall:

(1) list the name and position of any official or employee of the person to whom a return or return information is authorized to be revealed under the provision;

(2) describe the specific purpose for which the return or return information is to be used;

(3) describe the procedures and safeguards the person has in place to ensure that the requirements of Subsection B of this section are met; and

(4) provide for reimbursement to the department for all costs incurred by the department in supplying the returns or return information to, and administering the agreement with, the person.

D. A return or return information that is lawfully made public by an employee of the department or any other person, or that is made public by the taxpayer, is not subject to the provisions of this section once it is made public.

History: 1953 Comp., § 72-13-25, enacted by Laws 1965, ch. 248, § 13; 1969, ch. 8, § 1; 1970, ch. 16, § 1; 1971, ch. 276, § 5; 1975, ch. 136, § 1; 1977, ch. 249, § 42; 1979, ch. 144, § 7; 1981, ch. 37, § 8; 1982, ch. 18, § 8; 1983, ch. 211, § 21; 1985, ch. 65, § 10; 1986, ch. 20, § 12; 1987, ch. 169, § 3; 1988, ch. 73, § 6; 1991, ch. 19, § 1; 1993, ch. 5, § 3; 1993, ch. 261, § 1; 1996, ch. 15, § 3; 2000, ch. 28, § 3; 2001, ch. 56, § 3; 2003, ch. 398, § 5; 2003, ch. 439, § 1; 2005, ch. 107, § 1; 2005, ch. 108, § 2; 2005, ch. 109, § 2; 2007, ch. 164, § 2; 2009, ch. 241, § 1; 2009, ch. 242, § 2; 2009, ch. 243, § 2; 2017, ch. 63, § 18.

Repeals. — Laws 2017, ch. 63, § 31 repealed Laws 2009, ch. 241, § 1 and Laws 2009, ch. 242, § 2, effective June 16, 2017.

The 2017 amendment, effective June 16, 2017, included the statutory reference for a new section of the Tax Administration Act, and changed "through 7-1-8.10" to "through 7-1-8.11" throughout the section.

The 2009 amendment, effective July 1, 2009, deleted the former introductory paragraph; deleted former Subsections A through NN; and added new Subsections A through D.

The 2007 amendment, effective June 15, 2007, permits disclosure of information to the federation of tax administrators and adds Subsection NN.

The 2005 amendment, effective January 1, 2006, provided in Subsection D that the taxation and revenue department may disclose information to another jurisdiction pursuant to an international fuel tax agreement for tax purposes only; provided in Subsection R that the department may answer inquires concerning whether a person is a registered taxpayer for tax programs that require registration, but whether a person has filed a tax return; and provided in Subsection II that the department may disclose written rulings on questions of evidence and procedure made by a hearing officer, but not the name and identification of the taxpayer requesting the ruling.

The 2003 amendment, effective July 1, 2003, in Subsection N, substituted "number of gallons" for "amount and gallonage" and "received and deducted, and the amount of tax paid by each person required to file a gasoline tax return or pay gasoline tax" for "imported, exported, sold and used, including tax-exempt sales to the federal government reported or upon which the gasoline tax was paid and covering taxes received from each distributor"; in Subsection O, substituted "a rack operator, importer, blender, supplier or distributor and the number of gallons" for "distributors and gallonage" and inserted "a rack operator, importor, blender" following "Alternative Fuel Tax Act" and added Subsection GG.

The 2001 amendment, effective July 1, 2001, inserted "and not available from public sources" at the end of the preliminary language of the section and added Subsections EE and FF.

The 2000 amendment, effective July 1, 2000, in Subsection H, inserted "7-12-13 and Sections 7-12-15 and" and "or to the attorney general for purposes of Section 6-4-13 NMSA 1978 and the master settlement agreement defined in Section 6-4-12 NMSA 1978"; substituted "7-1-63" for "7-1-64" in Subsection J; and substituted "public regulation" for "state corporation" in Subsection W.

Gross receipts tax returns are privileged. — Where plaintiff sued defendants for employment discrimination; plaintiff's spouse, who was not a party to the action, maintained a private law practice; plaintiff alleged that upon filing the complaint, defendants retaliated against plaintiff by asserting irregularities with regard to the gross receipts tax records and returns of the spouse's private law practice; defendants asked the district court to issue subpoenas duces tecum to the spouse and to defendant taxation and revenue department for the spouse's gross receipts tax records and returns; and plaintiff's marital relationship to the spouse did not make plaintiff liable for payment of the gross receipts tax of the spouse's private law practice; the gross receipts tax records and returns sought by the subpoenas issued to the spouse and to defendant taxation and revenue department were confidential under Sections 7-1-4.2 and 7-1-8 NMSA 1978 and privileged under Rule 11-502 NMRA. Breen v. N.M. Taxation & Revenue Dep't, 2012-NMCA-101, 287 P.3d 379.

Release of audit to non-affiliated property owner not permitted. — Subsection U does not permit the release of an audit report on oil and gas operations by the taxation and revenue department to a non-affiliated owner of working interests in properties operated by the audited company. Meridian Oil, Inc. v. N.M. Taxation & Revenue, 1996-NMCA-079, 122 N.M. 131, 921 P.2d 327 (decided under prior law).

Am. Jur. 2d, A.L.R. and C.J.S. references. — 71 Am. Jur. 2d State and Local Taxation §§ 590, 591.

Validity, construction, and effect of state laws requiring public officials to protect confidentiality of income tax returns or information, 1 A.L.R.4th 959.

What constitutes privileged communications with preparer of federal tax returns so as to render communication inadmissible in federal tax prosecution, 36 A.L.R. Fed. 686.

84 C.J.S. Taxation § 481.