Taxpayer argued that he was not a resident of New Mexico. Taxpayer resided in New Mexico after he married a New Mexico resident. Prior to marriage, Taxpayer resided in England. Part of the year, Taxpayer works on a cruise ship spending approximately eight months each year on ship. The Department conducted an audit of the Taxpayers for tax years 2005-2008 and assessed Taxpayers personal income tax. Taxpayers paid the assessment for 2006, filed for a refund and formally protested based on the Department’s failure to grant or deny the claim. Taxpayer is considered a non-resident of the United Kingdom for tax purposes as he is a seafarer and his sole source of income is from overseas employment. The indicais of residency include permanent resident status in the United States, a New Mexico address, permanent resident card was mailed to New Mexico, issued a social security number, obtained an employment authorization card and a New Mexico driver’s license. Taxpayer also purchased a home in New Mexico, had three vehicles registered in New Mexico, and spent the majority of his non-working days in New Mexico. Taxpayers are resident of New Mexico, despite husband having a job that takes him on a cruise ship. Taxpayers are liable for unpaid tax and interest that they have been assessed for the tax years in question. Penalty was abated because they relied on advice of legal counsel who also prepared their taxes established that they did not act negligently or intentionally disregard the tax laws, so the penalty is abated. Taxpayers protest was granted in part and denied in part.
Lonyta Viklund & David Galloway