Gross Receipts Tax Audits Skyrocket in New Mexico

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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