Santa Fe Hotel Ltd. Partnership

14-25

On October 16, 2008, the Department issued two assessments to the Taxpayer, one for penalty and interest for untimely paid gross receipts and compensating tax, and the other for penalty and interest for untimely paid withholding tax.  The Taxpayer protested the assessment on February 25, 2009, having been granted a retroactive extension to file a protest.  At issue is whether the Taxpayer should be held liable for penalty and interest for failing to make timely payment of taxes under the special payment provisions of Section 7-1-13.1 NMSA 1978.  This special payment provision requires Taxpayers to pay taxes at least one business day before the due date directly to the Department in Santa Fe if paying by check drawn against a New Mexico bank, making payments due no later than the 24th day of the month.  On December 18, 2007, the Department sent a letter to the Taxpayer advising that effective January 1, 2008, the Taxpayer would be subject to these provisions.  For periods beginning January 1, 2008, through August 31, 2008, the Taxpayer delivered a check for payment of taxes on the 25th day of each month.  The Taxpayer argued that he did not recall receiving the Department’s letter, and that any employee who accepted his payment and CRS report could have easily explained that the payment needed to be delivered by the 24th.  However, this does not relieve the Taxpayer of the requirements of Section 7-1-13.1 NMSA 1978.  The hearing officer found that penalty and interest were correctly assessed.  The Taxpayer’s protest was denied.