June 21, 2016
Self-employed workers, contractors and business owners are coming under increasing scrutiny from the NM Taxation & Revenue Dept. which has been ramping up efforts to collect delinquent GRTs.
You may think you are an employee because you receive a W-2, but if you receive any form 1099-MISC, the state considers you self-employed.
For example, physicians receiving form 1099-MISC for testimony, consulting, speaking etc., are responsible for registering and filing reports with the state.
The number of desk audits – or letters to taxpayers alerting them of a possible discrepancy in taxes paid – launched by the agency has skyrocketed, FROM 666 DURING THE 2011 FISCAL YEAR TO 17,930 IN THE BUDGET YEAR EDING IN JUNE 2015!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
This trend is no accident – the agency has been able to better identify taxable income with more current technology.
The New Mexico Taxation & Revenue considers you responsible for tax, penalties and interest if you are unable to prove your receipts are not taxable.
Should you have any concerns, please schedule a consultation as it is always best to be ahead of audit notices. Our contact number is 505-884-8744.
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