{"id":4375,"date":"2015-09-10T16:05:07","date_gmt":"2015-09-10T22:05:07","guid":{"rendered":"https:\/\/www.tax.newmexico.gov\/all-nm-taxes\/?p=4375"},"modified":"2020-12-21T16:58:38","modified_gmt":"2020-12-21T23:58:38","slug":"flat-landers-taxidermy","status":"publish","type":"post","link":"https:\/\/www.tax.newmexico.gov\/all-nm-taxes\/2015\/09\/10\/flat-landers-taxidermy\/","title":{"rendered":"Flat Landers Taxidermy"},"content":{"rendered":"

[et_pb_section fb_built=”1″ _builder_version=”4.6.6″ _module_preset=”default”][et_pb_row _builder_version=”4.6.6″ _module_preset=”default”][et_pb_column _builder_version=”4.6.6″ _module_preset=”default” type=”4_4″][et_pb_text _builder_version=”4.6.6″ _module_preset=”default” hover_enabled=”0″ sticky_enabled=”0″]<\/p>\n

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09\/10\/2015<\/div>\n<\/div>\n
\n

15-30<\/a>\u00a0<\/span>\u00a0\u00a0\u00a0<\/p>\n

On April 23, 2015, the Department assessed the Taxpayer for gross receipts tax, penalty and interest for the CRS reporting periods from January 1, 2008 through December 31, 2008.\u00a0 On May 19, 2015, the Taxpayer protested the assessment.\u00a0 The Taxpayer is a registered hunting guide, who is required to work under the supervision of a registered outfitter.\u00a0 In 2008, the Taxpayer provided hunting guide services as an independent contractor for Business X, who paid him on a per day basis, did not withhold from his check, and provided him with a 1099 at the end of the year.\u00a0 Through its tape match program with the IRS, the Department detected that the Taxpayer had reported Schedule C business income on his 2008, 2010 and 2011 personal income tax returns, but did not have a corresponding CRS filing in those years.\u00a0 On January 31, 2015, the Department sent the Taxpayers a Notice of Limited Scope Audit Commencement.\u00a0 The notice informed the Taxpayer that he had 60-days to possess the appropriate executed nontaxable transaction certificate (NTTC) to support any claimed deductions.\u00a0 A CPA called the Department on behalf of the Taxpayers around February 4, 2015, and informed the Taxpayers that an NTTC was needed.\u00a0 On March 11, 2015, the Department sent the Taxpayers a reminder.\u00a0 On March 16, 2015, the Taxpayers submitted a series of documents to a Department employee via email, believing that this might be a sufficient substitute for an NTTC.\u00a0 The employee indicated that he would review the documents and respond as soon as possible if anything additional was needed.\u00a0 The Department employee did not contact the Taxpayers again.\u00a0 The Taxpayers did not present an executed NTTC by the deadline.\u00a0 The Taxpayer did present sufficient documentation to support that no gross receipts tax was due for the 2010 and 2011 years, so no assessments were issued for those years.\u00a0 Two weeks after the 60-day deadline, Business X executed a Type 2 NTTC to the Taxpayer.\u00a0 This NTTC covers the sale of tangible personal property for resale, rather than the sale of services for resale, which is covered by a Type 5 NTTC.\u00a0 On April 23, 2015, the Department issued its assessment for the 2008 gross receipts tax.\u00a0 There are three main issues in the protest.\u00a0 First, can the Department\u00a0 allow a deduction when an NTTC is executed after the deadline, even when a Department employee did not timely inform the Taxpayer that the documents provided were insufficient?\u00a0 Second, does equitable recoupment provide grounds to abate the assessment? The third issue is whether penalty and interest were appropriately assessed.\u00a0 Regarding the first issue, the deadline for NTTCs to be presented is set by statute, and the Department does not have discretion to allow a deduction when the NTTC is not timely executed.\u00a0 As to the second issue, the Department was unable to determine if Business X paid gross receipts tax on the hunting trips where the Taxpayer served as a guide and the Taxpayer was unable to establish the elements of equitable recoupment.\u00a0 As to the final issue, interest is mandatory under Section 7-1-67 NMSA 1978.\u00a0 The Hearing Officer found that the Taxpayer was not negligent, as is required for penalty to be imposed, because the lack of response by the Department employee.\u00a0 The penalty was ordered to be abated.\u00a0 \u00a0The Taxpayers\u2019 protest was granted in part and denied in part.<\/p>\n<\/div>\n

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Back to Tax Decisions & Orders<\/a><\/p>\n

[\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section]<\/p>\n","protected":false},"excerpt":{"rendered":"

09\/10\/2015 15-30\u00a0\u00a0\u00a0\u00a0 On April 23, 2015, the Department assessed the Taxpayer for gross receipts tax, penalty and interest for the CRS reporting periods from January 1, 2008 through December 31, 2008.\u00a0 On May 19, 2015, the Taxpayer protested the assessment.\u00a0 The Taxpayer is a registered hunting guide, who is required to work under the supervision […]<\/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-4375","post","type-post","status-publish","format-standard","hentry","category-tax-decisions-orders"],"yoast_head":"\nFlat Landers Taxidermy : 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\" 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