Debbie Garcia-Ingram



The Taxpayer was an independent contractor from 1996 through 1998 working for a County Government. In 1999 the Department assessed the Taxpayer for gross receipts tax, penalty and interest on her receipts from performing services. The Taxpayer protested the assessment, arguing that it was unfair to assess her penalty and interest because no one told her that gross receipts tax was to be paid on her income, and that it was unfair to assess her penalty and interest when some of her co-workers did not pay gross receipts tax on their income. Held: The Taxpayer was late in paying gross receipts taxes and interest was due pursuant to Section 7-1-67 NMSA 1978; the Taxpayer was negligent by failing to determine the tax consequences of engaging in business as an independent contractor, and penalty was due pursuant to Section 7-1-69 NMSA 1978.  There was no evidence introduced to support the Taxpayer’s contention that other, similarly situated taxpayers were not paying gross receipts tax.  Even if this were true, the remedy would be to assess those taxpayers, not to abate the assessment against the Taxpayer in this case.  Protest denied.