The Taxpayer has a history of filing and paying its CRS taxes in a timely manner. However, for the tax period ending February 28, 2013, the taxpayer timely paid its CRS taxes, but forgot to submit an electronic return. For the tax period ending July 31, 2013, the Taxpayer submitted its electronic CRS return timely, but forgot to submit a timely payment. On November 8, 2013, the Department assessed the Taxpayer for penalty for gross receipts and withholding tax for the tax period ending February 28, 2013, and for penalty and interest for gross receipts and withholding tax for the tax period ending July 31, 2013. The matter at issue is whether the Department properly assessed the Taxpayer for penalty and interest. The Taxpayer argued that because it had always paid and filed in a timely manner, there should be a provision that allows forgiveness of penalty and/or interest for one mistake. There is no such provision within Section 7-1-69(A) NMSA 1978 because it states that penalty is imposed when a Taxpayer is negligent in not filing a return or paying tax when it is due. Based on the information presented, the Taxpayer was negligent in not filing. Additionally, Section 7-1-67(A) provides that interest shall be paid on taxes that are not paid on or before the due date. The taxes were not paid on the due date, so interest must be applied. The Taxpayer’s protest was denied.
Tent Rock Inc.