Express Packaging and Postal Service, Inc.

12-06

The Taxpayer was engaged in business in New Mexico for that tax periods from January 1998 through August 2003.  The Taxpayer was audited by the Department and the Department determined that the Taxpayer was a nonfiler or had underreported for most of those months.  On August 12, 2004, the Department assessed the Taxpayer for gross receipts, compensating tax, withholding tax and interest for those tax periods.  No penalty was assessed.  On August 23, 2004, the Taxpayer filed a formal protest to the assessments.  At the hearing, the Taxpayer argued that it had not been given enough time to get the proper Nontaxable Transaction Certificates (NTTCs) from its customers to show that many of its receipts were deductible.  However, the Department argued that the Taxpayer had sufficient time to get NTTCs.  Additionally, NTTCs from the two businesses that the Taxpayer mentioned would not have been valid anyway because those businesses were 501(c)(3)s or governments and are not allowed to use NTTCs for services.  The Taxpayer’s protest was denied.