2021 New Mexico Statutes
Chapter 7 - Taxation
Article 1 - Administration
Section 7-1-12 - Identification of taxpayers.
A. The secretary by regulation shall establish a system for the registration and identification of taxpayers and shall require taxpayers to comply therewith.
B. The registration system shall be devised so as to facilitate the exchange of information with other states and the United States and to aid in statistical computations.
C. The secretary by regulation also shall provide for a system for the registration and identification of purchasers or lessees who, by reason of their status or the nature of their use of property or service purchased or leased, are ordinarily entitled to make nontaxable purchases or leases of some kinds of property or service and may require such purchasers or lessees to comply therewith.
D. Any document, issued by the department under authority of this section, which is required to be posted on the business premises of the taxpayer shall contain a brief reference to the requirements of Section 7-1-61 NMSA 1978.
History: 1953 Comp., § 72-13-29, enacted by Laws 1965, ch. 248, § 17; 1966, ch. 52, § 1; 1979, ch. 144, § 11; 2000, ch. 28, § 4.
ANNOTATIONSThe 2000 amendment, effective July 1, 2000, substituted "secretary" for "director" in Subsections A and C and substituted "department" for "director" in Subsection D.
Possession of taxpayer identification number. — The mere possession of a New Mexico registration number by a foreign taxpayer does not mean that the taxpayer is registered with New Mexico for gross receipts tax purposes; the possession of a New Mexico taxpayer identification number did not mean that the taxpayer acknowledged that a nexus existed with respect to its activities in New Mexico for gross receipts tax purposes. Siemens Energy & Automation, Inc. v. N.M. Taxation & Revenue Dep't, 1994-NMCA-173, 119 N.M. 316, 889 P.2d 1238.
Department lacked authority to impose tax liability against taxpayer who was not engaged in business at the time the tax liability was incurred. — Where in 2009, taxpayer established a business that provided court reporting services, registered with the taxation and revenue department (department), was assigned a Combined Reporting System (CRS) number for tax reporting purposes, and operated the business as a sole proprietorship from 2009 to 2012, at which time taxpayer converted the business to a limited liability company (LLC), and where taxpayer failed to update the business's registration with the department and continued to operate under the original CRS number assigned to the sole proprietorship, and where the department's computerized auditing system detected a mismatch between the information taxpayer reported to the IRS and the information taxpayer reported to the department, resulting in the department updating the computerized records to reflect that taxpayer's business was operating as an LLC, but failing to issue taxpayer a new CRS number, and where, in 2017, the department issued a notice of assessment of taxes and demand for payment for gross receipts tax from taxpayer as the sole proprietor of the business for the 2012 tax year, and where the hearing officer denied taxpayer's protest finding that the sole proprietorship was obligated for the assessment because at the time the tax liability was incurred, the CRS number on file with the department was assigned to taxpayer, as the sole proprietor of the business, rather than as an LLC, the hearing officer erred in denying taxpayer's protest because to the extent the hearing officer's decision imposed liability against taxpayer for failing to register with the department, it is not in accordance with this section, which permits only the person engaging in business to be taxed, and the overwhelming evidence demonstrated that the business was operating as an LLC during the taxable period. Moreover, neither the registration statute, NMSA 1978 § 7-1-12, nor the department's regulations permit the department to impose liability against a taxpayer based solely on its failure to update its registrations. New Mexico Depo v. N.M. Tax'n & Revenue Dep't, 2021-NMCA-011.
