Marilyn Stock



The taxpayer erroneously claimed a $2,000 deduction on her 1999 New Mexico personal income tax return.  The Department disallowed the deduction and assessed the taxpayer for $144.50 of additional tax, plus interest and penalty.  The taxpayer has no memory of receiving the assessment and did not become aware of her liability until she received a billing notice in February 2003.  At that time, the taxpayer paid the amount due and applied for a refund of the penalty and interest, which was denied.  The taxpayer then protested the denial, arguing that interest and penalty should not be imposed because she did not learn of her liability for additional tax until February, 2003.  The hearing officer denied the protest, finding that, under Sections 7-1-67(A) and 7-1-69(A) NMSA 1978, interest and penalty were properly assessed from the date the tax was originally due in April, 2000.