Kevin Fenner

14-39

On February 27, 2007, the Department assessed the taxpayer for personal income tax, penalty and interest for the tax period ending on December 31, 2003.  The Taxpayer filed a timely protest to the assessment.  On November 20, 2013, the Department assessed the Taxpayer for personal income tax, penalty and interest for the 2005 through 2010 tax years.  The Taxpayer filed a timely protest to the assessments.  The Taxpayer conceded that he was a resident of New Mexico in 1994, and remained a resident until at least 1997.  The Department argued that the Taxpayer continued to be a resident through the 2010 tax year.   The Taxpayer argues that he intended to be a resident of Alaska since the 1980s, and established residency by renting a room from a friend, registering vehicles, obtaining driver’s licenses, and registering to vote in Alaska.  However, during the period in question, the Taxpayer registered vehicles in New Mexico, obtained and kept a New Mexico driver’s license, purchased multiply residences in New Mexico, opened bank accounts in New Mexico, and signed bank documents stating that he intended to make his homes in New Mexico his primary residences.   The Hearing Officer found that the Taxpayer did not successfully change his domicile from New Mexico during the tax years at issue.  The Taxpayer also provided fraudulently altered and redacted documents at the hearing which, along with the other evidence, show evidence that he was willfully attempting to evade tax, so he was correctly assessed a higher rate of penalty.  The Taxpayer’s protest was denied.