Gloworks Trucking

14-31

On October 23, 2013, the Department assessed the Taxpayer for Weight Distance Tax, civil negligence penalty, interest, and Weight Distance Tax underreporting penalty for the Weight Distance Tax reporting periods of March 31, 2007, through December 31, 2011.  On November 18, 2013, the Taxpayer protested the assessment.  The Taxpayer is a trucking company that generally hauls dirt, gravel, and road de-icing salt.  The Taxpayer’s services generally qualify for the reduced one-way hauler Weight Distance Tax rate.  The Department selected the Taxpayer for audit, and found that although the Taxpayer qualified as a one-way hauler, it mistakenly reported only the one-way mileage, rather than all miles traveled in New Mexico.  This meant the Taxpayer reported only half of its total traveled mileage for Weight Distance Tax purposes.  The Taxpayer acknowledged a misunderstanding of the instructions regarding reporting, and did not contest owing the tax.  The Taxpayer was asking that the penalty and interest be abated because she felt they were excessive given her misunderstanding.  Prior to the hearing, the Department abated the assessed civil negligence penalty.  Remaining at issue is whether the Department has the authority to abate the assessed interest and/or the Weight Distance Tax underreporting penalty.  Section 7-15A-16 NMSA 1978, states that the Weight Distance Underreporting shall be imposed for failure to report all mileage.  Similarly, Section 7-1-67 NMSA 1978, contains language that interest shall be imposed.  The Taxpayer’s protest was denied.