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  3. B&M Enterprises, Inc.

B&M Enterprises, Inc.

03/16/2003

03-16

The Taxpayer was a corporation doing business in New Mexico. It suffered two serious airplane accidents and other financial setbacks that resulted in closure of the business in February 2000. After a federal audit, the Department received a revenue agent’s report from the IRS notifying the Department of adjustments made to the Taxpayer’s federal returns for 1994 and 1995 fiscal years. The Department issued an assessment for corporate income tax, penalty and interest for the same periods. Although the Taxpayer did not dispute the tax, penalty and interest, it asked for a reduction based on the financial problems and the fact that it is no longer in business. Held: the financial problems are not matter for consideration by the Department. The law gives neither the Secretary nor the Hearing Officer the authority to abate or adjust tax assessments when personal or financial problems of a taxpayer are factors in failure to pay. Protest denied.