The Taxpayer is in the construction business in New Mexico. Because of a Schedule C mismatch between the Taxpayer’s Federal 1040, and his gross receipts tax reported to New Mexico, the Department issued a Notice of Limited Scope Audit to the Taxpayer for tax years 2005 and 2006 on July 2, 2008. The notice informed the taxpayer that he had 60 days from the date of the notice to provide any nontaxable transaction certificates (NTTCs). On October 2, 2008, the Department issued two assessments to the Taxpayer, one for tax year ending December 31, 2005, and the other for tax year ending December 31, 2006. Both included gross receipts tax, penalty and interest. At the hearing, the Taxpayer testified that he provided invoices and receipts to the Department, but he did not have all of the receipts, and he did not use any NTTCs at the time of the transactions. The Taxpayer did not provide any evidence as to the discrepancy between what he reported to the Federal government and what he reported to New Mexico. The Taxpayer’s protest was denied.
Donald Coleman dba Building Trades