On November 20, 2019, the Department issued a Notice of Assessment of Taxes and Demand of Payment for gross receipts tax, penalty, and interest for periods January 1, 2013, to December 31, 2016. The assessment was based on a Schedule C mismatch of income reported to the Internal Revenue Service and income that was never reported to the state of New Mexico. At issue in this protest is where the Taxpayer sold their tangible personal property that resulted in the income in question. The Hearing Officer determined that the Taxpayer’s testimony was extremely credible and persuasive along with the information provided that the sales took place in Texas and not in New Mexico. As the sales took place outside of New Mexico the definition of “gross receipts” excludes them from gross receipts tax. The Hearing Officer, granted the Taxpayer the protest and ordered that the assessment be abated in full.