Elan Chiropractic



The Taxpayer began business as a chiropractor in 1981. In 1992, due to a series of personal setbacks, the Taxpayer became unable to keep up with his business and make his tax payments in a timely manner.  He filed for Chapter 13 bankruptcy and entered into an installment agreement with the Department to repay his back taxes. The Taxpayer closed his business in 1995, but continued to report and pay gross receipts tax on payments he received from work previously performed.  In 1997, the Taxpayer realized he had overpaid his gross receipts taxes by approximately $3,000. The Department confirmed the overpayment and told the Taxpayer that he could apply for a refund. The Taxpayer postponed filing an application for refund until September 2001, by which time the statute of limitations had run. The Taxpayer protested the Department’s denial of his refund, arguing that the Department misled him by failing to specifically advise him of the three-year limitations period. Held: The Taxpayer’s claim for refund of gross receipts taxes is barred by the limitations period set out in Section 7-1-26 NMSA 1978, the Department is not estopped from denying the Taxpayer’s claim for refund, and the hearing officer does not have authority to override the provisions of New Mexico’s tax laws and waive the limitations period.