James Brown



The Taxpayer was a resident of Texas for 34 years prior to establishing New Mexico residency in mid-November 1996. In July 2000, following a limited scope audit, the Department assessed the Taxpayer for gross receipts tax, penalty and interest on business income reported on his 1996 federal income tax return. The Taxpayer protested the assessment, stating that none of his business income was attributable to services performed in New Mexico. The Department offered no evidence to dispute his testimony, but relied on the statutory presumption of correctness that attaches to Department assessments.  Held: Based on Taxpayer testimony and the absence of any evidence to dispute that testimony it is determined that the Taxpayer had no gross receipts subject to New Mexico gross receipts tax during the 1996 calendar year. Protest granted.