Donald Barnes

05-22

The taxpayer protested an assessment of 1999 personal income tax that was based on information the Department received from the IRS.  The taxpayer argued that his income did not fit the definition of “gross income” defined in the Internal Revenue Code; that only the Secretary of the United States Treasury had authority to determine the taxpayer’s liability for state tax; and that the information exchanged between the IRS and the Department was based upon fraud and errors.  The Department moved for summary judgment, and the taxpayer failed to file a response.  The hearing officer granted the Department’s motion, finding that the taxpayer’s first argument resulted from an erroneous reading of the Internal Revenue Code; that there was no legal authority to support the taxpayer’s argument that only the Secretary of the Treasury may determine and assess New Mexico personal income taxes; and that the information exchange agreement between the Department and the IRS met statutory requirements.  The taxpayer’s protest was denied.