Thu Hong Nguyen



On February 1, 2013, the Department issued two assessments to the Taxpayer, one for the tax year ending December 31, 2008, the other for the tax year ending December 31, 2009, for gross receipts tax, penalty and interest.  During the tax years in question, the Taxpayer worked as a nail technician for two salons in New Mexico.  The Taxpayer received commissions for her work, and was issued 1099s at the end of the tax year.  On June 25, 2012, the Department mailed a notice of limited scope audit commencement to the Taxpayer because of a Schedule C mismatch.  The notice informed the Taxpayer that she had 60 days to produce any nontaxable transaction certificates (NTTCs) necessary to support claimed deductions.  The Taxpayer called the Department regarding the notice, and was told to obtain the proper NTTCs.  The Taxpayer did not obtain any NTTCs by the deadline.  On February 26, 2013, well after the deadline, and after the assessment had been issued, the salons that the Taxpayer provided services for resale executed Type 5 NTTCs to the Taxpayer.  On March 1, 2013, the Taxpayer filed a protest to the assessment.  Based upon the evidence provided, the Taxpayer was engaged in business during the period in question, and worked as an independent contractor for these nail salons.  The Taxpayer did not timely possess NTTCs to support a deduction of the sale of a service for resale.  The Taxpayer’s protest was denied.