Based on a limited-scope audit, the Department assessed the Taxpayer for unpaid personal income tax, interest and penalty for tax year 2008 on June 25, 2012. On July 14, 2012, the Taxpayer protested the assessment. During the audit, the Department requested copies of the Taxpayer’s W-2s, 1099s, and all other income source documents for tax year 2008. The Department also advised the Taxpayer that some of his filing information was not consistent with his federal return per information provided by the IRS. During the tax period at issue, the Taxpayer was employed, earning wage income, in Bernalillo County, New Mexico. At the hearing, the Taxpayer made arguments related to not being subject to taxation as he is a citizen of a sovereign state but not the United States. Additionally, the Taxpayer argued that the documents relied on to show income are hearsay, and that he was not an employee, did not earn wages. The Taxpayer did not present anything to show that the assessment was incorrect, nor did he show that the failure to pay personal income tax was non-negligent for purposes of penalty. The Taxpayer’s protest was denied.