New Mexico Orthopedic Association

13-37

For the February, March and April 2013 periods, the Taxpayer remitted gross receipts tax to the Department, but did not file CRS-1 Forms.  When this error was discovered, the Taxpayer filed the CRS-1 Forms on June 14, 2013.  On July 8, 2013, the Department issued three assessments to the Taxpayer for late-filing penalties for February, March and April 2013.  The Taxpayer filed a protest to the assessments.  The Taxpayer admitted that the returns were filed after the deadlines, but argued that the Department never notified the Taxpayer of the option of entering into a managed audit agreement to avoid the assessment of penalty.  The hearing officer found that the managed audit provisions do not apply to the Taxpayer.  The returns for the periods in question were filed late and the penalty was appropriately assessed.  The Taxpayer’s protest was denied.