Santa Fe, NM asked in Tax Law for New Mexico

Q: The question is about requirements for NTTCs in NM when selling art on commission & statute of limitations for audits.

I am an artist in NM. In 2013 & 2014 I sold work through a gallery. They collected gross receipts tax from buyers & paid taxes on the full amount of each sale. I reported the income I received from sales on federal & state returns. Recently I was audited by NM Tax. & Rev. They claim I owe gross receipts tax on that income. I explained the situation to the auditor & he told me the gallery should have given me an NTTC. The gallery had never done this with any of their artists. How is this typically handled with a gallery if not by NTTCs?

Furthermore, I asked why I was being audited for taxes so far back & the auditor said he was not allowed to look at returns for 3 years in case they were amended. But I looked up the law & it seems to me that auditing is actually required to happen within 3 years. Is this correct? Is there anything I can do to counter this assessment? They assessed a grand total of $7.34 for unpaid tax within the past 3 years, then over $1000 for 4-6 years ago.

Related Topics:
1 Lawyer Answer
Concetto Kirk Di Giacomo
Concetto Kirk Di Giacomo
Answered
  • Tax Law Lawyer
  • Scottsdale, AZ

A: Based on the information you provided, you are actually in a somewhat complicated situation. You’re going to need to “get moving” soon, because there’s a 60-day within which you need to apply for a retroactive exemption to the NTTC. This pamphlet should get you started: https://smartpay.gsa.gov/sites/default/files/FYI-204%20Nontaxable%20Transaction%20Certificates%20NTTCs%20%281%29.pdf

If all of this information is too complicated and you would like a licensed New Mexico attorney to help, please contact me. I may be able to help you further. Email me at: Digiacomo@troonlaw.com

Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.

The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.

Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.