New Mexico Court Upholds Tax Assessments Based on Forms W-2 and 1099

The New Mexico Court of Appeals affirmed the administrative hearing officer’s decision upholding tax assessments against the taxpayer. The dispute arose when the taxpayer, claiming zero adjusted gross income based on federal filings, failed to file state tax returns despite receiving W-2 and 1099 income. The court rejected the taxpayer’s arguments, ruling that the state can independently determine tax liability based on Forms W-2 and 1099, regardless of federal reporting. The court also upheld the application of civil penalties and interest, finding no good-faith exception applied to the taxpayer’s actions. [Bonney v. N.M. Tax’n & Revenue Dep’t, N.M. Ct. App., ...