Jeffery A. Williams



Taxpayer was notified of a limited scope audit (C-SPAN) based on a discrepancy between the business income reported on his federal income tax return and the receipts reported to New Mexico. Taxpayer was notified that he had a 60-day period to provide evidence (NTTCs) to support any deductions. Taxpayer made the following arguments against the assessment resulting from the limited scope audit: 1) his contract labor did not constitute “engaging in business”; 2) his possession of a Type 7 NTTC would make his receipts deductible; and 3) to deny the deduction under Section 7-9-52 would be double taxation. Taxpayer was engaging in business and the taxpayer did not submit the NTTC to the Department within the 60-day period provided by statute nor was it the appropriate NTTC for the transaction. Protest denied.