{"id":4204,"date":"2016-06-17T12:17:31","date_gmt":"2016-06-17T18:17:31","guid":{"rendered":"https:\/\/www.tax.newmexico.gov\/all-nm-taxes\/?p=4204"},"modified":"2026-04-11T13:29:08","modified_gmt":"2026-04-11T19:29:08","slug":"luscous-music","status":"publish","type":"post","link":"https:\/\/www.tax.newmexico.gov\/all-nm-taxes\/2016\/06\/17\/luscous-music\/","title":{"rendered":"Luscous Music"},"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\">06\/17\/2016<\/div>\n<\/div>\n<div class=\"blogItem\">\n<p><a href=\"https:\/\/realfile.tax.newmexico.gov\/16-27_luscous_music.pdf\">16-27<\/a><\/p>\n<p><span>On December 9, 2015, the Department assessed the Taxpayer for gross receipts tax, penalty and interest for the CRS reporting periods between January 1, 2009 and December 31, 2011.\u00a0 On January 12, 2016, the Taxpayer prepared a letter of protest, which the Department received on January 14, 2016.\u00a0 The Taxpayer is a sole proprietor who performs music and sells his music on compact discs.\u00a0 The Taxpayer is registered with the Department, has a business license with the City of Santa Fe, and has a business website and business cards.\u00a0 The Taxpayer occasionally performed paid gigs, and performed as a street musician on the Santa Fe Plaza three times a week for two hours at a time.\u00a0 While performing there, the Taxpayer sold compact discs and collection money in a tip jar from passersby.\u00a0 The Taxpayer maintained a ledger where he would note his compact disc sales separately from the money in his tip jar.\u00a0 The Taxpayer reported and paid gross receipts tax on the sales of compact discs, but not on the money received in his tip jar because he believed tips were not subject to gross receipts tax from his previous experience as a waiter.\u00a0 The Taxpayer did report the money received in his tip jar on his federal income tax returns.\u00a0 Through its Schedule C tape match program with the IRS, the Department detected that the Taxpayer reported business income on his Schedule C that did not match his filed CRS returns.\u00a0 Regulation 3.2.1.18 (R) states that a gratuity offered to service personnel to acknowledge a service given is not gross receipts.\u00a0 The tips received by the Taxpayer were voluntary amounts placed in the tip jar by satisfied members of the public, not because of any charge imposed by the Taxpayer, and meet the definition of a gratuity. The Taxpayer\u2019s protest was granted.<\/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>06\/17\/2016 16-27 On December 9, 2015, the Department assessed the Taxpayer for gross receipts tax, penalty and interest for the CRS reporting periods between January 1, 2009 and December 31, 2011.\u00a0 On January 12, 2016, the Taxpayer prepared a letter of protest, which the Department received on January 14, 2016.\u00a0 The Taxpayer is a sole [&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-4204","post","type-post","status-publish","format-standard","hentry","category-tax-decisions-orders"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Luscous Music : 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\/06\/17\/luscous-music\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Luscous Music : All NM 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