AI Generated Opinion Summaries

This summary was computer-generated without any editorial revision. It is not official, has not been checked for accuracy, and is NOT citable.

Facts

• William C. Severns and his wife were long-time residents of New Mexico, filing joint personal income tax returns up to the year 2000. From 2001 onwards, they ceased filing New Mexico personal income tax returns, claiming a change of residency to Nevada. The New Mexico Taxation and Revenue Department issued notices of assessment for unpaid personal income taxes, penalties, and interest for tax years 2001 through 2007, naming Mr. Severns as the party liable. Severns contested these assessments, asserting non-residency in New Mexico for the disputed tax years, except for 2005, which he conceded (paras 2-3).

Procedural History

• [Not applicable or not found]

Parties' Submissions

• • Protestant-Appellant/Cross-Appellee (Severns): Argued that he and his wife were not New Mexico residents during the tax years in question due to a change of domicile to Nevada in 2001. Severns also contested the imposition of penalties and sought attorney fees (paras 3, 4, 14, 16).
• • Respondent-Appellee/Cross-Appellant (Department): Maintained that Severns was a New Mexico resident during the tax years at issue, supporting the assessment of unpaid personal taxes and interest. The Department cross-appealed the hearing officer’s decision to abate the assessment of penalties (paras 1, 4, 22).

Legal Issues

• Whether Severns was a New Mexico resident during the tax years 2001-2004 and 2006-2007.
• Whether the hearing officer correctly abated the Department’s assessment of penalties.
• Whether Severns was entitled to recover attorney fees.

Disposition

• The Court of Appeals affirmed the hearing officer's decision that Severns was a New Mexico resident for the tax years 2001-2004 and 2006-2007 and upheld the assessment of personal income taxes plus interest for those years.
• The decision to abate the Department’s assessment of penalties was also affirmed.
• Severns' request for attorney fees was denied (paras 6, 21, 27).

Reasons

• VANZI, Judge (KENNEDY, Chief Judge, and BUSTAMANTE, Judge concurring):
  The Court found that the hearing officer correctly determined Severns' residency based on substantial evidence, including Severns' physical presence in New Mexico, maintenance of a New Mexico driver's license, and voter registration. The Court also noted Severns' significant ties to New Mexico, such as property ownership and the location of personal effects, which supported the conclusion of continued residency in New Mexico (paras 12, 13, 17-20).
  Regarding the abatement of penalties, the Court agreed with the hearing officer that Severns was not negligent in failing to file personal income tax returns for the years in question because he relied on the advice of competent counsel regarding his domicile change. The Court rejected the Department's argument that Severns intentionally evaded tax payments, noting this theory was not presented at the hearing officer level and thus was not preserved for appeal (paras 22-27).
  The Court also corrected an error in the hearing officer's decision by clarifying that Diane Severns was not a party to the protest hearing below, as the assessments were directed solely at William Severns (para 28).