12/05/2007 07-21 The Taxpayer owned a corporation that acted as an independent sales representative for a manufacturer of home packages. As a marketing tool, the Taxpayer constructed a home using the same materials included in the home package. Because the Taxpayer...
11/09/2007 07-20 The IRS adjusted the Taxpayer’s 1999 personal income tax returns, resulting in an increased federal and state tax liability. In 2003, the IRS notified the Department of the adjustment, and the Department assessed the Taxpayers for their underreported...
10/31/2007 07-19 The Taxpayer had $1,900 of unreimbursed medical expenses in the 2006 tax year. On her 2006 New Mexico personal income tax, the Taxpayer erroneously claimed a refundable credit that is available only to taxpayers with unreimbursed medical expenses of...
10/30/2007 07-18 The Taxpayer operates a retail business selling building materials, hardware, and homeware. During the period at issue, the Taxpayer erroneously accepted Type 9 Nontaxable Transaction Certificates (NTTCs) from non-profit and government entities for...
10/11/2007 07-17 The Taxpayer overpaid her 2001 personal income taxes but did not feel any urgency in filing a return because she did not owe any tax. Due to a series of unfortunate events, the 2001 return was not filed until 2006, and the Taxpayer’s refund was...
09/10/2007 07-16 Corrosion Services, Inc. (“CSI”) was incorporated in 1976 and initially engaged in the business of corrosion control services. Later, CSI expanded into the area of pipeline construction, which came to represent 70% of its business. In the late...
08/22/2007 07-15 The Taxpayer and her former husband filed a joint 1999 federal income tax return. They also prepared a joint New Mexico return, but never filed it as they were in the midst of a separation. Upon their divorce, the husband was ordered to pay their...
08/15/2007 07-14 The Taxpayer is a private, for-profit corporation that performed services for Amtrak as an independent contractor. The Taxpayer’s inspection, maintenance, and cleaning of Amtrak rail cars was performed by the Taxpayer’s employees in Albuquerque...
07/27/2007 07-13 The Taxpayer and his wife formed a New Mexico limited liability company (LLC) to sublease restaurant space in Santa Fe, New Mexico. The Taxpayer intended to further sublease the space to a third party, but could not obtain the landlord’s consent....
07/11/2007 07-12 The Taxpayer is an out of state corporation specializing in commercial vehicle leases. In 2000, the NM General Services Department (GSD) requested bids for the leasing of vehicles to the state. The bid specifically stated that other state agencies...