In New Mexico, gross receipts are the total amount of money or value of other consideration received from:
- Selling property in New Mexico;
- Leasing or licensing property employed in New Mexico;
- Granting a right to use a franchise employed in New Mexico;
- Performing services in New Mexico, and
- Selling research and development services performed outside New Mexico, the product of which is initially used in New Mexico.
Notice that these are not simple employer-employee relationships that would be reported on a W-2 (which the state gets a copy of), but income from other sources that are not so well tracked. See http://www.tax.newmexico.gov/Businesses/gross-receipts.aspx
The number of audits relating the gross receipts has been increasing over the last few year, as more sophisticated computer software is becoming available to cross reference database sources and find gross receipts that potentially have not been properly reported. See https://www.abqjournal.com/628699/grossreceipts-tax-audits-skyrocket-in-nm.html
Now that you have reviewed these two articles and thought about your own return, go and do what Kat says...
