The Behles Law Firm PC
On June 28, 2018, the Department issued a notice of assessment for corporate income tax, withholding tax, and the workers compensation fee to the Taxpayer. On September 27, 2018, the Taxpayer filed a timely formal protest with the Department. The Taxpayer provided history on the reasons for the infrequent filing of returns with the Department including personal life and health events. In the Taxpayer’s closing arguments, it said it wanted to make sure that the method used was accurate and request that the tax, penalty, or interest in question be abated. The Department testified that the audit was completed per normal procedures and as sufficient records were not provided during the audit the auditor used the band deposit method allowed by Regulation 18.104.22.168(C)(1) NMAC. The Department also applied an additional penalty under Section 7-1-69(D) NMSA 1978 for conduct seen as willful intent to evade or defeat a tax. The Hearing Officer determined that the Department’s determination that the records provided were insufficient and unreliable was reasonable. For the forgoing reasons, the Taxpayer’s protest was granted to the extent that the Department agreed to make adjustments and denied with respect to all other issues in dispute.