{"id":5808,"date":"2011-03-15T16:29:10","date_gmt":"2011-03-15T22:29:10","guid":{"rendered":"https:\/\/www.tax.newmexico.gov\/all-nm-taxes\/?p=5808"},"modified":"2026-04-11T13:32:46","modified_gmt":"2026-04-11T19:32:46","slug":"lynette-baldwin","status":"publish","type":"post","link":"https:\/\/www.tax.newmexico.gov\/all-nm-taxes\/2011\/03\/15\/lynette-baldwin\/","title":{"rendered":"Lynette Baldwin"},"content":{"rendered":"

[et_pb_section fb_built=”1″ _builder_version=”4.7.0″ _module_preset=”default”][et_pb_row _builder_version=”4.7.0″ _module_preset=”default”][et_pb_column _builder_version=”4.7.0″ _module_preset=”default” type=”4_4″][et_pb_text _builder_version=”4.7.0″ _module_preset=”default” hover_enabled=”0″ sticky_enabled=”0″]<\/p>\n

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03\/15\/2011<\/div>\n<\/div>\n
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11-08<\/a><\/p>\n

The Taxpayer was a state-licensed jockey agent in tax years 2005 and 2006. \u00a0The Taxpayer believed that her income, a percentage of her jockey-client\u2019s purse earnings, was exempt from gross receipts taxes because she was a \u201chorsemen\u201d for purposes of Section 7-9-40 NMSA 1978. \u00a0Because of this belief, the Taxpayer did not file any CRS reports or pay any gross receipts tax, but the income was reported to the IRS on a Schedule C. \u00a0As part of the tape match with the IRS, the Department found a difference between the Taxpayer\u2019s Schedule C and CRS reported income for tax years 2005 and 2006. \u00a0The Department conducted a tape-match audit and assessed the taxpayer for gross receipts tax, penalty and interest for the two years in question. \u00a0The Taxpayer filed a written protest to the assessments, citing the exemption under Section 7-9-40 NMSA 1978 as her argument for not owing these taxes. \u00a0The auditor assigned to her protest contacted the Deputy Director of the New Mexico Racing Commission and determined exactly what a jockey agent does and that those services that do not qualify for the exemption cited by the Taxpayer. \u00a0The Taxpayer was informed of this but did not agree and renewed her protest to the assessments. \u00a0The hearing officer determined that it was clear that the Taxpayer did not qualify for the exemption given in Section 7-9-40 NMSA 1978. \u00a0Her income was subject to the gross receipts tax. \u00a0The taxpayer also argued against the imposition interest and stated that the interest was too high, but interest is mandatory in statute and not up to the discretion of the Department. \u00a0The rate is set in statute by the Legislature and must be imposed at the rate given. \u00a0Penalty is also correctly imposed in this situation because the Taxpayer\u2019s erroneous belief that she did not owe tax qualifies as negligence. \u00a0However, the hearing officer determined that the penalty imposed exceeded the cap in place at the time the receipts were due, as the increase in the cap on penalty from 10% to 20% only happened in 2007. \u00a0Any penalty above the 10% was ordered to be abated. \u00a0For those reasons, the Taxpayer’s protest was granted in part and denied in part. \u00a0
Note: The New Mexico Court of Appeals has overruled the 10% penalty issue mentioned in this decision. (Case No. 30,932)<\/p>\n<\/div>\n<\/div>\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":"

03\/15\/2011 11-08 The Taxpayer was a state-licensed jockey agent in tax years 2005 and 2006. \u00a0The Taxpayer believed that her income, a percentage of her jockey-client\u2019s purse earnings, was exempt from gross receipts taxes because she was a \u201chorsemen\u201d for purposes of Section 7-9-40 NMSA 1978. \u00a0Because of this belief, the Taxpayer did not file […]<\/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-5808","post","type-post","status-publish","format-standard","hentry","category-tax-decisions-orders"],"yoast_head":"\nLynette Baldwin : 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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