M & M Stores, Inc.



On October 1, 2015, the Department issued five assessments to the Taxpayer.  On October 8, 2015, the Department issued an additional nine assessments to the Taxpayer.  Each of the fourteen assessments were for gross receipts tax, penalty and interest for a monthly CRS reporting period between March 2014 and April 2015.  On October 20, 2015, the Taxpayer protested the assessments, asking for abatement of penalty because of a hospitalization.  The Taxpayer did not dispute that it owed the assessed gross receipts tax principal and interest.  The Taxpayer operates three gas stations and convenience stores in Albuquerque.  In 2013 or 2014, the Taxpayer’s manager and accountant, who is responsible for preparing and paying the Taxpayer’s CRS returns, developed a medical condition that required significant medical testing, observation and procedures.  The manager continued to work to ensure basic operations of the Taxpayer’s business, but did let some business obligations slip.  When the medical condition was stabilized in 2015, the accountant returned his focus to the Taxpayer’s business.  Although the health situation of the Taxpayer’s manager was unfortunate, it was not enough to be able to abate penalty.  To meet the requirements to abate penalty under Regulation NMAC, the Taxpayer must also demonstrate an inability to procure the services of another person to prepare the return.  The Taxpayer’s protest was denied.