Shaun E. Holguin



On September 29, 2017, the Department assessed the Taxpayer for personal income tax, penalty, and interest for the tax year ending December 31, 2010. On October 11, 2017, the Taxpayer filed a timely protest with the Department. During the time at issue, the Taxpayer worked in Albuquerque, NM. Through the tax mismatch program with the Internal Revenue Service (IRS), the Department found that the Taxpayer had income for the year but had not filed a 2010 personal income tax return with the state. The Department then initiated a limited scope audit of the Taxpayer regarding the 2010 tax year. The record was left open for 60-days after the hearing to allow for the Taxpayer to produce the records in questions and resolve the matter of the protest. During this time period, the Taxpayer submitted the records in question and issued the Taxpayer a notice of abatement of the assessed tax, penalty, and interest. The Hearing Officer notes that the Department specified with the Administrative Hearing Office (AHO) that it would inform it if any abatement were made but that the Department failed to notify the AHO while the matter was still under the AHO’s advisement. As a result, on April 30, 2018, the AHO released a final, public decision and order. On May 9, 2018, the Taxpayer called the Hearing Officer and left an unsolicited voice-message informing the Hearing Officer that he was confused about the final decision as the Department had issued a formal notice of abatement of the assessed tax. On May 10, 2018, the Hearing Officer issued an order directing the Department to respond within seven days to the Taxpayer’s allegations. A response from the Department was not received. On May 14, 2018, the Department filed a withdrawal of protest form in this matter. The Hearing Officer determined that the previous decision and order is withdrawn and is replaced with this amended decision and order. The Department is ordered to remove the original decision and order from its website and replace it with the amended decision and order. The Taxpayer’s protest is granted.