Sarah Maestas Barnes


On April 20, 2021, the Department issued a Notice of Assessment and Demand for Payment of gross receipts tax, penalty, and interest. The assessment was based on 1099-MISC forms that were issued to the Taxpayer. The Taxpayer argued that the 1099-MISC forms are nonemployee compensation and in this case are not gross receipts, that the law firm that the Taxpayer worked for is liable for any gross receipts tax due and not the Taxpayer, that if valid the assessment results in impermissible double taxation, and that the assessment violates the Equal Protection Clause. The Hearing Officer determined that the evidence that was provided in the protest was persuasive and that the 1099-MISC were incorrectly issued to the Taxpayer and that the income associated with them were provided to the law firm that the Taxpayer worked for and not the Taxpayer. The Hearing Officer determined that as the Taxpayer never received that income that the Taxpayer’s protest is granted, and that the assessment shall be abated in full.