James and Nora Tutt



On December 15, 2009, the Department issued five notices of assessment to the Taxpayers for unpaid personal income tax, penalty and interest, for the periods ending December 31, 2002, through December 31, 2006.  The Taxpayers protested the assessments.  For the periods in question, the Taxpayers filed their federal and state personal income tax returns as “married filing jointly,” and listed their address as their home in Farmington.  During the tax periods at issue, one of the Taxpayers lived and worked in Farmington, and the Taxpayers paid personal income tax on all of her income.  The other Taxpayer is an enrolled member of the Navajo Nation who, during the relevant period, was president of the Crownpoint Institute of Technology (CIT) in Crownpoint, NM.  CIT is located within the boundaries of the Navajo Nation.  While employed with CIT, and as part of his employment agreement, the Taxpayer was provided with an on-campus apartment and vehicle.  The hearing officer found that the Taxpayer lived and worked on the Navajo Nation during the relevant period, so his income was entitled to the exemption under Section 7-2-5.5 NMSA 1978.  The Taxpayer’s protest was granted.