ILLMAS Posted August 19, 2015 Report Share Posted August 19, 2015 (edited) I am helping out a fellow accountant respond to a notice one of her clients received, here is the issue, her client received a notice from the state of NM stating that the TP failed to report a 1099 for $15K for 2012. However when I take a look at the federal return the net profit ($12K) of the $15K is reported on the federal tax return and is reflected on the AGI which flows to NM. The notice simply states you didn't report the $15K and here is your tax, both her and I feel this is a mistake, anyone that has experience in NM chime in?ThanksMAS Edited August 19, 2015 by ILLMAS Quote Link to comment Share on other sites More sharing options...
Catherine Posted August 20, 2015 Report Share Posted August 20, 2015 If you both feel certain it's a mistake, send in an explanatory letter with copies of the federal and state returns. Highlight the place where the $15K is reported (and/or show where the net figure comes from). Use lots of highlighter, plus circles and arrows and whatever else. NM still does a lot of its processing by paper; it's possible some subsidiary form or schedule got lost or missed. 1 Quote Link to comment Share on other sites More sharing options...
Abby Normal Posted August 20, 2015 Report Share Posted August 20, 2015 Are you sure they're not looking for Gross Receipts Tax? Quote Link to comment Share on other sites More sharing options...
ILLMAS Posted August 21, 2015 Author Report Share Posted August 21, 2015 Good point, I will reread the letter, maybe that is the cause. thanks Quote Link to comment Share on other sites More sharing options...
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