Linda Lombardo



The Taxpayer changed her residence from New Mexico to Arizona in October 2003 and filed 2003 personal income tax returns in both states as a part-year resident.  On her New Mexico return, the Taxpayer claimed a $4,335 credit for taxes paid to Arizona although the tax liability reported on her Arizona return was only $1,953.  The Department determined that the Taxpayer should have filed her New Mexico return as a full-year resident because she was present in the state for more that 185 days and adjusted her return accordingly.  The Department also reduced the credit taken for tax paid to another state to the amount of tax actually paid to Arizona.  The Taxpayer paid the tax principal but protested the assessment of interest, arguing that the Department’s instructions were wrong and that the Department took too long to provide her CPA with a copy of the income tax statutes at issue.  The Hearing Office found that the instructions were clear on the amount of the credit allowed and that it was the obligation of the Taxpayer and her CPA to determine her correct tax liability.  The Taxpayer’s protest was denied.