1. All NM Taxes
  2. Tax Decisions & Orders
  3. Santa Fe Business Service, Inc.

Santa Fe Business Service, Inc.



Taxpayer claimed a deduction pursuant to Section 7-9-57 NMSA 1978 for a portion of his receipts from providing accounting services. Taxpayer was contracted to perform accounting services for a gallery in Santa Fe. The gallery was a subsidiary of a corporation headquartered in Michigan. The Taxpayer provided a copy of the monthly statements he prepared to the gallery, and at the same time, he faxed copies of the statements to the parent corporation in Michigan. The deduction was denied because the Taxpayer had contracted to perform accounting services for the gallery, which was located within New Mexico, which took delivery of the product of the services in New Mexico.  The Taxpayer also argued that the assessment was invalid against it because by the time the assessment was issued, the Taxpayer had converted from a sole proprietorship to a corporation, and when the corporation was formed, the corporation assumed all of the assets and liabilities of the sole proprietorship. Held that the assessment was valid because it was issued to the Taxpayer which incurred the liability.