Decisions & Orders
Decision & Orders (D&O) are written statements to implement a decision after an administrative hearing with the Administrative Hearings Office (AHO).
D&O are the result of a timely filed protest (Section 7-1-24 NMSA 1978) that cannot be resolved informally between the taxpayer and the New Mexico Taxation and Revenue Department (Tax & Rev) that is sent to hearing with the AHO. Within 30 days after the hearing, the AHO hearing officer issues a D&O in writing to Tax & Rev and the taxpayer that includes:
(1) an order granting or denying the relief requested or granting or denying a part of the relief requested, as appropriate.
(2) findings of fact and law and a thorough discussion of the reasoning used to support the order with citations to the record and applicable law.
(3) information on the right to appeal the D&O to the court of appeals within 30 days after the date of the decision and of the consequences of a failure to appeal. Appeals are decided based on the evidence and arguments presented at the administrative hearing (Section 7-1-25 NMSA 1978).
Starting July 1, 2015, the AHO was no longer administratively tied to Tax & Rev (Section 7-1B-1 through 7-1B-10 NMSA 1978).
Disclaimer: A Decision & Order pertains to a specific set of facts and law for a specific taxpayer. A Decision & Order does not establish legal precedent or policy followed or applied by Tax & Rev.
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Alamo True Value Home Center
04/29/2009 09-02 The Taxpayer operated a retail hardware store in New Mexico, and was also a construction contractor. An audit of the Taxpayer by the Department revealed that the Taxpayer did not have all necessary Nontaxable Transaction Certificates (NTTCs), for...
Cadworks Home Design & Draft
03/30/2009 09-01 This is a successor in business case. Taxpayer was the secretary and a director of CLC, a corporation owned by his brother that provided computer-aided drafting services and designs for homes. The corporation leased office space and maintained a...
Cumberland Therapy Services
11/19/2008 08-04 The Taxpayer provides professional therapy services for schools, including five New Mexico school districts. The Department conducted an audit of the Taxpayer for the period from July 1, 2001 through June 30, 2005. The Department determined that the...
Sarah Hunter
10/08/2008 08-03 The Taxpayer filed a timely New Mexico personal income tax return for the 2004 tax year. Using the federal tape match the Department found that the income reported on the Taxpayer’s federal income tax return was substantially higher than the amount...
Joseph & Kathy Mailander
05/02/2008 08-02 During the period at issue, the Taxpayer and his wife had a home in Las Cruces and maintained New Mexico voter and vehicle registrations and New Mexico driver’s licenses. The Taxpayer’s wife also ran a business out of their Las Cruces home. In 1998,...
Danny & Enid Grubb
02/06/2008 08-01 During 1999, Dan Grubb performed construction services for a subcontractor on a large construction project. The Taxpayers reported Mr. Grubb’s income as business income on a Schedule C to their federal income tax return. They reported additional...
Greg & Kimberly Hayes
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...
Justo & Jessie Cordova
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...
Joan E. Oller
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...
Diamond G Home Center
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...
Rose Bilat
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...
Corrosive Services Corporation
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...
Brenda K. Murray, aka Brenda K. Akin
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...
JDJ Services, Inc.
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...
J. Nold Midyette
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....
Merchants Automotive Group, Inc.
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...
Salomon L. Rael
06/12/2007 07-11 In 2004, the IRS notified the Taxpayer that an examination of his 2000 and 2001 federal income tax returns revealed a substantial underreporting of compensation. The reports that notified the Taxpayer, referred to as “RARs” were not signed, but did...
James H. Avant
06/11/2007 07-10 The Department assessed the Taxpayer for 1999 New Mexico personal income tax, plus penalty and interest. The Taxpayer protested, challenging the validity of state and federal income tax laws. The Taxpayer did not deny that he earned the income in...
Humberto & Petra Morales,
06/07/2007 07-09 The Taxpayers were assessed as successors in business to a supermarket previously operated in the same location. The Department subsequently issued a Notice of Claim of Tax Lien which referenced the earlier assessment. The Taxpayers filed a protest...
Daniel Villa
05/16/2007 07-08 The Taxpayer made an error on his 2002 state and federal income tax returns. He subsequently amended his federal return to correct the error, but did not amend his New Mexico return. In 2006, the Department assessed the Taxpayer for additional tax,...