On January 26, 2012, the Department selected the Taxpayer for a Weight Distance Tax Audit for the reporting periods from January 1, 2009, through December 31, 2011. During the audit, the Department determined that the Taxpayer had underreported its New Mexico mileage, and assessed the Taxpayer for weight distance tax, civil penalty, interest, and weight distance tax underreporting penalty. The Taxpayer protested the assessment, and pointed to two specific instances where it had not been provided credit for overpaid Weight Distance Tax. As a result, the assessment was adjusted and reissued. The Taxpayer uses a computer program to generate a mileage log showing miles traveled per state. This log is the foundation for the Taxpayer’s invoicing, payroll and tax reporting systems. The computer program the Taxpayer uses is the oldest and most widely-accepted software system in the transportation industry. During the audit, the Taxpayer provided mileage records for sampled vehicles during the audit period however, the Department used a different mileage software system. The hearing officer found that the Taxpayer had adequate records and established that it relied on a consistent mileage reporting methodology. Because the Taxpayer did not underreport its mileage, the Taxpayer’s protest was granted and the assessment was abated.
JLK Transportation, LLC