Carole Ann Kirby



The Taxpayer is a registered nurse who performed medical services for a New Mexico clinic as an independent contractor.  The Taxpayer reported and paid gross receipts taxes on her receipts under the contract.  Subsequently, the clinic’s business manager erroneously advised the Taxpayer that she was not liable for gross receipts tax on her payments from the clinic.  Based on this advice, the Taxpayer filed a claim for refund of the taxes she had paid.  The Department asked the Taxpayer for nontaxable transaction certificates (NTTCs) to support a deduction of her receipts from selling her services for resale.  When the Taxpayer asked the clinic for an NTTC, she was told that it did not have any.  The Taxpayer’s claim for refund was denied and she filed a written protest, arguing that the clinic had already paid gross receipts tax on the money it collected from patients.  The hearing officer held that the transactions between the clinic and its patients and the clinic and the Taxpayer were both subject to gross receipts tax because the clinic did not provide the Taxpayer with NTTCs, and the situation did not fit any other deduction or exemption.  The Taxpayer’s protest was denied.