Red Angus Cattle For Sale Purebred Red Angus • Weaned & Open Heifers • Calving Ease Bulls
YOUNG BULLS FOR SALE
JaCin Ranch SANDERS, ARIZONA
928/688-2753
cell: 505/879-3201
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DECEMBER 2015
C IA TION O
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s we continue to attempt to protect the landowners who care for New Mexico’s wildlife, messages out of the New Mexico Tax & Revenue Department (TRD) become more bizarre. To recap, in late September numerous landowners who receive elk authorizations for use on their property received letters from the TRD stating that they may be liable for gross receipts tax on those authorizations. Landowners have the option of filing for a managed audit. A managed audit provides for the landowner to file the information for the years they choose in terms of income that may have been received from the sale of those elk authorizations. You turn in your managed audit and you will get a bill from the TRD with 180 days to pay it. However, in applying for that managed audit, you give up your right to protest whatever that tax bill is. If you choose the managed audit option, you will likely be relieved of penalties and
Io the Point
W MEXICO NE C A TT L E
It’s a multiple choice . . .
S W E R S' A S
by Caren Cowan, Exec. Director, New Mexico Cattle Growers’ Assn.
interest on the back taxes that you will owe. If you have a Combined Reporting System (CRS) number from TRD, you are liable for gross receipts tax back six (6) years. If you do not have a CRS number, you are liable for taxes back seven (7) years. There were mixed signals on when the request for a completed managed audit deadline was, it now seems clear that December 31, 2015 is the deadline. However apparently you have a multiple choice as to what you want to do if you receive elk authorizations but do not derive any income from them. (a) TRD staff first told folks calling in that the Department would estimate the value of the authorizations and tax accordingly. Then they backed up and told callers that they didn’t need to do anything. (b) Then the TRD stated in a meeting that even if you don’t derive income you need to file with zeros to avoid an audit. (c) The word on November 15 was “If
Phil Harvey Jr. Cell 575-644-6925
Jim Bob Burnett Cell 575-365-8291
philharveyjr@comcast.com
jbb@pvtnetworks.net
www.bhherefords.com
they have not sold any licenses, a letter to TRD stating that fact will suffice. However, like any tax situation, if TRD finds contradictory information, it will be subject to audit.” It is worth noting that none of these options have been documented with TRD letterhead or signature. Finally, if you opt not to file for a managed audit and you received a letter in September, you can expect an assessment and a full audit in 2016. The TRD says that the assessments will be based on “third party” information used to determine the value of the authorizations you received. In plowing our way through this issue, we have found things that appear to be arbitrary and capricious at best. We have learned that the TRD sent out some 30,000 letters in late September. Obviously the letters went to more than just landowners continued on page 34
January 13-14, 2016 Roswell Convention Center Roswell, NM
AGBA
American Galloway Breeders Association
www.AmericanGalloway.com
PUT YOUR HERD BACK TO WORK. Galloway genetics are ideal for today’s low input market demands. Feed Efficient • High Yielding carcass w/Minimal Back Fat • Easy Fleshing • Moderate Mature Size • Low BW
970-405-5784 Email: AGBA@midrivers.com
An educational forum tailored for beef producers in the Southwest. The Southwest Beef Symposium is a joint effort between the New Mexico Cooperative Extension Service and Texas A&M AgriLife Extension Service, established to annually provide producers with timely information about current industry issues and practical management. Call for info: 575-644-3379 Register Online: swbs.nmsu.edu