East Mountain Speech Pathology

01-23

The Taxpayer has been engaged in business in New Mexico since 1990.  In early 1998, the Taxpayer was informed that for the report period of January-June 1997, the Department had no record of receiving the Taxpayer’s CRS return or payment. The Taxpayer’s business records contained copies of a CRS return and check indicating timely filing for that period, but the Taxpayer had no independent recollection or Post Office receipt to establish whether or when these items were mailed to the Department. The Taxpayer was not aware that her check had not been cashed because she did not balance her tax account checkbook on a regular basis. The Taxpayer subsequently filed her CRS return and paid the taxes due for the period January-June 1997. In May 1998, the Department assessed the Taxpayer penalty and interest on the late payment of taxes for that period. The Taxpayer protested, arguing that her payment was mailed in a timely manner and that the Department took too long to notify her that the payment had not been received. The Department subsequently abated the penalty portion of the assessment. Held: The Taxpayer failed to meet her burden of proving that payment of CRS taxes was timely and the Department’s assessment was issued within the statutory period provided in 7-1-18 NMSA 1978.  Protest denied.