Jeannie L. Myers

11-24

The Taxpayer has been a full-time resident of New Mexico on a fixed out-of-state retirement income since 2005.  For each tax year through tax year 2009, the Taxpayer had a personal income tax liability that was slightly less than the $500 minimum difference between income earned and wage withholding that triggers a penalty for failure to make estimated payments.  In tax year 2010, the Taxpayers retirement income again resulted in a personal income tax liability below $500.  However, in tax year 2010, the Taxpayer accepted a temporary job with the Census Bureau.  The pay from this position resulted in a personal income tax liability above $500.  The Taxpayer did not make quarterly estimated payments for tax year 2010.  The Taxpayer filed and paid her 2010 personal income taxes on April 14, 2011.  On June 9, 2011, the Department assessed Taxpayer for $12.28 in penalty for failure to make quarterly estimated payments.  The Taxpayer paid the assessed penalty, but also filed a protest to the assessment and asked for a refund.  The issues to be decided were whether the Taxpayer qualified for any exception to the assessment for failure to make estimated payments, and whether the Taxpayer’s excellent payment history allows for relief in this situation.  No exception applies that allows the Department to abate this penalty, and the hearing officer does not have the authority to grant relief based on prior history.  The Taxpayer’s protest was denied.