The Taxpayer was engaged in providing hauling services for a construction project in New Mexico in 2006. The Taxpayer did not report or pay gross receipts taxes for 2006. The Department determined that there was a mismatch between Taxpayer’s gross receipts reports and its federal Schedule C for that period. The Department assessed the Taxpayer for gross receipts taxes, plus penalty and interest. The Taxpayer filed a formal written protest to the assessment, arguing that he attempted to obtain non-taxable transaction certificates from the business but was unable to do so, and that the other business had already paid the gross receipts tax on the transaction. The hearing officer determined that the Taxpayer was negligent in his non-payment of the tax and that the assessment was correct. However, the computation of penalty was found to be incorrect and part of it was to be abated. For these reasons, the Taxpayer’s protest was granted in part and denied in part.