Yvonne Barnum



The taxpayer performed consulting and quality assurance services in New Mexico as a subcontractor.  The taxpayer did not realize that she was subject to New Mexico gross receipts tax on the receipts from her services.  She did not consult with her accountant or with the Department and did not obtain an NTTC from the company that resold her services in New Mexico.  As a result of an information-sharing program with the IRS, the Department assessed the taxpayer for gross receipts tax, penalty, and interest.  The taxpayer protested the assessment, claiming that she was not liable for gross receipts tax because:  her services were sold for resale; she worked as an employee; the Department never notified her of the requirement to pay gross receipts tax; and the Department abated an assessment of gross receipts tax against another, similarly situated taxpayer.  The hearing officer denied the protest, finding that the taxpayer’s receipts from performing services in New Mexico were subject to gross receipts tax and that the taxpayer failed to meet her burden of establishing her entitlement to any statutory exemptions or deductions.