Floyd E. Carroll



In June 2004, the Department assessed the taxpayer for gross receipts, compensating, and withholding taxes, plus penalty and interest.  The taxpayer protested the assessment.  The taxpayer sought to have the Hearing Officer dismiss his protest, with prejudice, because Department employees had not filed a surety bond with the secretary of state’s office pursuant to Sections 10-2-2 through 10-2-12 NMSA 1978.  In a letter to the taxpayer, the Hearing Officer denied the request for dismissal.  At the hearing, the taxpayer refused to testify under oath, continually demanded to know whether the Hearing Officer had filed a surety bond and failed to present any relevant evidence regarding the tax liability at issue.  Because the taxpayer presented no evidence to show that the assessment was incorrect, the Hearing Officer denied the protest.