Aida Luz Gonzales



The Taxpayer performed services for a nonprofit business as an independent contractor during the 2001, 2002 and 2003 tax years.  The Taxpayer did not charge or pay gross receipts tax on her receipts from the nonprofit.  In 2004 the Department received information from the IRS concerning the business income reported on the Taxpayer’s federal income tax returns, and the Taxpayer was subsequently assessed for gross receipts tax on this income, plus penalty and interest.  The Taxpayer paid the tax principal but protested the assessments of penalty and interest, arguing that the Department failed to give adequate notice of the tax and she did not learn of her liability until 2004.  Held:  The state’s tax statutes provided the Taxpayer with notice of her liability for gross receipts tax on her business income..  New Mexico has a self-reporting tax system, and taxpayers may not sit back and wait for the Department to notify them of their legal obligations to the state.  Protest denied.