06/30/2004 04-07 The taxpayer underreported his income on his 1999 New Mexico personal income tax return. Due to computer problems, the Department did not run a tape match with IRS records for the 1999 tax year until February 2003. In August 2003, based on the tape...
05/11/2004 04-06 The taxpayer erroneously filed his 1999 federal and state personal income tax returns based on the filing status “head of household” rather than “single.” The IRS notified him of the error, but the taxpayer failed to amend his New Mexico return...
04/28/2004 04-05 ?The taxpayer sold his 2002 Ford Explorer to a private party for cash. He then applied that cash to the purchase of a new Toyota Sequoia. After paying motor vehicle excise tax on the full purchase price of the Toyota, the taxpayer applied for a...
03/25/2004 04-04 The taxpayer reported business income on Schedule C (Profit or Loss from Business) of his 1999 federal income tax return but did not report New Mexico gross receipts tax on this income. In response to the Department’s audit notice, the taxpayer...
02/26/2004 04-03 Dart Industries, Inc., manufacturer and marketer of Tupperware products, entered into a franchise distribution agreement with Susan Carnell, who is located in Albuquerque. An audit performed by the Multistate Tax Commission on behalf of the Department...
02/16/2004 04-02 Sometime after purchasing Team Specialty Products, Inc., the new owners discovered that their bookkeeping staff had failed to file an application for the technology jobs tax credit for the period January through December, 2001. The company’s new CPA...
01/08/2004 04-01 On October 15, 1999, the taxpayer filed a New Mexico personal income tax return (Form PIT-1) for the 1998 tax year, reporting a tax liability of $1,018. No payment was included with the return. On March 19, 2002, the Department issued an assessment...
12/29/2003 03-24 The taxpayer filed a timely 1995 PIT return showing a prepayment of $1,321 and tax due of $791, which he paid by check. The Department did not have any record of the prepayment. In June 1996, the Department’s Legacy computer system generated...
12/09/2003 03-23 The taxpayer filed three identical claims for refund of gross receipts taxes overpaid for reporting periods October 1996 through October 1998. The first claim was filed in October 1999, the second in May 2000, and the third in April 2001. The...
12/03/2003 03-22 A field audit of the taxpayer for 1995, 1996 and 1998, found that in calculating New Mexico taxable corporate income under the combined filing method, Xerox had deducted dividends and Subpart F income received from foreign subsidiaries whose...