New Mexico Administrative Code › Title 3 - TAXATION › Chapter 1 - TAX ADMINISTRATION › Part 10 - COLLECTIONS › Section 3.1.10.9 - SURRENDER OF PROPERTY UPON SERVICE OF LEVY ON A FINANCIAL INSTITUTION

Current through Register Vol. 35, No. 13, July 16, 2024
A. If a warrant of
				levy is served upon a financial institution in New Mexico, the financial
				institution must survey all checking accounts, savings accounts, escrows for
				collection, safety deposit boxes, trusts, certificates of deposit and all other
				accounts or places in which it may possess or hold any property or rights to
				property belonging to the taxpayer as of the date of service of the warrant of
				levy.
B. The financial institution
				upon which a warrant of levy is served must immediately surrender to the
				department any property or rights to property of the taxpayer which that
				institution possesses or holds as of the date of service of the warrant.
				Failure to do so makes the financial institution liable to the state of New
				Mexico in a sum equal to the value of the property or rights not surrendered.
				If a financial institution upon which a warrant of levy is served knows of
				property or rights to property of the taxpayer in the possession of another as
				of the date of the service of the warrant of levy, it must immediately report
				this fact to the agent of the department. A mere expectation that funds of the
				taxpayer will come into the possession of the institution, however, absent a
				contractual or other legal obligation between the taxpayer, the financial
				institution or any third parties, is not required to be revealed by the
				financial institution since the mere expectation does not constitute possession
				of funds by the institution.
C. If
				a financial institution upon which a levy has been served complies with all of
				the requirements of Sections
				7-1-31
				and
				7-1-34
				NMSA 1978, and the taxpayer subsequently deposits funds or property with the
				institution, the institution is not required to reveal this fact to the
				department until a new warrant of levy is served.
D. For the purposes of Section 3.1.10.9 NMAC,
				the term "financial institution" shall mean any bank, savings and loan
				association, credit union, pawn shop or any other similar entity which acts as
				a depository for another person's funds.
E. Example: X Bank is served with a warrant
				of levy in an amount of $2,000 by the department pursuant to Sections
				7-1-31
				and
				7-1-32.
				The bank is required by the warrant of levy to reveal the amount of property in
				its possession that belongs to D, a delinquent taxpayer, and to surrender the
				property up to $2,000, if available. D's account at X Bank contains a balance
				of $100 on the date the warrant of levy is served on X. X also knows that D
				makes a deposit of $1,000 every month and receives a $50 royalty check every
				month; but on the date the warrant of levy is served, these deposits have not
				been made and will not be made for another week. X Bank is not required to
				reveal or surrender the $1,050 which will come into its possession one week
				after the date the warrant of levy is served. It is required to disclose and
				surrender the $100 of D's account which is in its possession on the date the
				warrant of levy is served. If X Bank is served with another levy, pursuant to
				the provisions of Section
				7-1-33 NMSA
				1978, after D has deposited the additional $1,050, it will then be required to
				disclose and surrender that amount.