A national and a statewide civil rights group have filed lawsuits against New Mexico and the state's tax department alleging that refunds are being withheld illegally from people filing taxes using federal tax ID numbers.
Two suits filed in state court Thursday on behalf of a couple and two other workers seek refunds and an injunction to block what the organizations call an "unlawful and discriminatory practice."
Plaintiffs' attorneys say the state Taxation and Revenue Department in 2012 began a policy of denying tax refunds to New Mexico residents who file returns using their federally-issued tax ID.
They say the state has sent at least 14,500 letters to filers citing discrepancies on their returns and seeking supporting documents. Meanwhile, the same people have been receiving federal refunds from the IRS.
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