Seems to me in these times when states are hard pressed for cash, it would be a very simple matter for the State of New Mexico (or any other state) to request an electronic file from EVEP or any other MLP doing business in that state, showing all investors who had NM Income in excess of say $500 from the partnership. Then it would be very simple to match that file against filed returns and send out letters for the missing ones. The IRS has been doing that for many years with W2's and 1099's. (Hope no state tax officials are reading this message)
Thanks for your replies. Rip, although I don't know much about taxes I suspect you are right.
Just as an aside I have three MLP's. I used Turbo Tax. With these three MLP's my Federal return came to something like 29 pages including worksheets. I don't know how I would have done it without Turbo Tax. Although I tried reviewing my tax return, I couldn't figure out what the program was doing. I had to take it on faith that Turbo Tax was doing it correctly. This was my first tax year with MLP's distributions. I've never before had a tax return that long or that complex. How does the government expect the average guy to cope with this level of complexity?
Best regards to all my fellow investors at 4 AM this cold Sunday morning.
Ditto on the TurboTax - 5 MLP's, 65 pages on my Federal return!
No on the state question - I only pay "attention" to the state I file my Fed in. Which, to make it more complicated, I live in Fl and work in Chicago, which makes my "tax residence" Il. Owed $70k fed, $10k state - on top of the $33k I paid through withholding.