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  3. Michael D. Sue Callaway

Michael D. Sue Callaway


On February 4. 2021, the Department issued a Notice of Assessment and Demand for Payment for personal income tax for the 2017 and 2018 tax year. On February 12, 2021, the Taxpayer filed a timely written protest. The assessments at issue were the result of a Schedule C mismatch where the Taxpayer’s states they did not receive the notice because it was incorrectly addressed. During the hearing, both parties agreed that the mail was sent to the incorrect address due the erroneous identification of a handwritten “4” as a “9”. As the Taxpayer’s, never received this notice, the opportunity to resolve questions or concerns prior to the assessment lapsed which resulted in the Notice of Assessment being sent on February 4, 2021. This notice was sent to the correct address and the Taxpayer’s took the opportunity to address the notice. The Taxpayer’s did not dispute the imposition of the tax and on April 12, 2021, the Department abated the penalty as it recognized the error that was made on the address but informed the Taxpayer’s they would need to file a protest to address the interest assessed. The Hearing Officer determined that based on the facts that it is appropriate to partially abate interest. However, the request from the Taxpayer’s to remove and destroy the erroneous scan that resulted in the incorrect mailing address has been denied. The Hearing Officer denied and granted in part the Taxpayer’s protest. It is ordered that the Taxpayer is entitled to a reduction and refund in interest paid consistent with the computation provided in Section 7-1-67(A)(7) NMSA 1978 (2013).