{"id":4169,"date":"2016-07-12T12:08:19","date_gmt":"2016-07-12T18:08:19","guid":{"rendered":"https:\/\/www.tax.newmexico.gov\/all-nm-taxes\/?p=4169"},"modified":"2026-04-11T13:29:07","modified_gmt":"2026-04-11T19:29:07","slug":"professional-services-company","status":"publish","type":"post","link":"https:\/\/www.tax.newmexico.gov\/all-nm-taxes\/2016\/07\/12\/professional-services-company\/","title":{"rendered":"Professional Services Company"},"content":{"rendered":"<p>[et_pb_section fb_built=&#8221;1&#8243; _builder_version=&#8221;4.6.6&#8243; _module_preset=&#8221;default&#8221;][et_pb_row _builder_version=&#8221;4.6.6&#8243; _module_preset=&#8221;default&#8221;][et_pb_column _builder_version=&#8221;4.6.6&#8243; _module_preset=&#8221;default&#8221; type=&#8221;4_4&#8243;][et_pb_text _builder_version=&#8221;4.6.6&#8243; _module_preset=&#8221;default&#8221; hover_enabled=&#8221;0&#8243; sticky_enabled=&#8221;0&#8243;]<\/p>\n<div class=\"blogDateTitleContainer\">\n<div class=\"blogDateTitle\">07\/12\/2016<\/div>\n<\/div>\n<div class=\"blogItem\">\n<p><a href=\"https:\/\/realfile.tax.newmexico.gov\/16-36_professional_services_company.pdf\">16-36<\/a><\/p>\n<p><span>On February 5, 2013, the Department issued two assessments to the Taxpayer for gross receipts tax, penalty and interest for the CRS reporting periods ending December 31, 2008 and December 31, 2009.\u00a0 These assessments were a result of a mismatch the Department detected between the Taxpayer\u2019s filed CRS returns and the income reported on the federal Schedule C income tax return.\u00a0 On February 22 and 26, 2013, the Taxpayer filed timely protests of the assessments.\u00a0 The Taxpayer is a sole proprietorship whose owner is a civil engineer who performs surveying work and serves as a construction project superintendent.\u00a0 The Taxpayer provided several arguments as to why the receipts at issue were exempt or otherwise not taxable.\u00a0 One argument was that some of the receipts were from reimbursed expenditures received as a disclosed agent, and another was that other receipts were either employee wages or isolated and occasional sales.\u00a0 Section 7-9-3.5(A)(3) NMSA 1978 provides that receipts received solely on behalf of another in a disclosed agency capacity are excluded from gross receipts.\u00a0 The Taxpayer provided no evidence that would indicate the receipts were received in a disclosed agency capacity.\u00a0 Pursuant to Section 7-9-17 NMSA 1978, wages of employees are exempt from gross receipts taxes, however, the Taxpayer did not establish that he was an employee of the other company under the factors listed there.\u00a0 Finally, the Taxpayer argued that receipts received from renting surveying equipment to a company that he was performing services for was isolated and occasional, which would be exempt under Section 7-9-28 NMSA 1978.\u00a0 The hearing office found that the rental occurred over a period of a year and was part of the Taxpayer\u2019s performance of surveying services for the company.\u00a0 The Taxpayer\u2019s protest was denied.<\/span><\/p>\n<\/div>\n<p>[\/et_pb_text][et_pb_text _builder_version=&#8221;4.6.6&#8243; _module_preset=&#8221;default&#8221;]<\/p>\n<p><a href=\"\/all-nm-taxes\/tax-decisions-orders\/\">Back to Tax Decisions &amp; Orders<\/a><\/p>\n<p>[\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section]<\/p>\n","protected":false},"excerpt":{"rendered":"<p>07\/12\/2016 16-36 On February 5, 2013, the Department issued two assessments to the Taxpayer for gross receipts tax, penalty and interest for the CRS reporting periods ending December 31, 2008 and December 31, 2009.\u00a0 These assessments were a result of a mismatch the Department detected between the Taxpayer\u2019s filed CRS returns and the income reported [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":"","_et_gb_content_width":"960","footnotes":""},"categories":[43],"tags":[],"class_list":["post-4169","post","type-post","status-publish","format-standard","hentry","category-tax-decisions-orders"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Professional Services Company : All NM Taxes<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.tax.newmexico.gov\/all-nm-taxes\/2016\/07\/12\/professional-services-company\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" 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