Mico Services, LLC

12-04

The Taxpayer was engaged in business in New Mexico in April 2010 and was required to file its gross receipts monthly.  The Taxpayer filed its April 2010 filing with payment from gross receipts and withholding tax by mail on May 11, 2010.  In February 2011, the Taxpayer noticed that the check it submitted for its April 2010 gross receipts tax had not been cashed.  The Taxpayer contacted the Department and learned that the return and payment for that month had never been received.  Within two days of learning this, the Taxpayer re-filed the return and payment.  On March 9, 2011, the Department assessed the Taxpayer for penalty and interest for the period ending April 30, 2010.  The Taxpayer filed a formal protest to the assessment.  The issue to be decided at the hearing was whether the Taxpayer was liable for penalty and interest for the period ending in April 2010 due to negligence.  The hearing officer found that, based on evidence presented at hearing, and the Taxpayer’s history of filing and paying timely, that the Taxpayer had likely mailed their return and payment timely.  The Taxpayer’s protest was granted.