UNM Music department faculty members are giving private music lessons in their University offices and allegedly breaking the law by not paying taxes on the income, a former graduate student said.
Robert Starner, who studied music for five years, said department and College of Fine Arts administrators are aware of the situation and allow faculty members to educate each other on how to avoid paying gross receipts tax on money earned through the lessons.
"This is a situation of scandalous proportions that the University needs to address," Starner wrote in a letter to the Daily Lobo. "According to state and local laws, faculty members who give private music lessons ... must pay gross receipts tax on those lessons. This is frequently not the case and represents a state of Music department-sanctioned tax fraud."
Steven Block, chairman of the Music department, said faculty members occasionally give lessons to high school students, and it "is a good recruiting tool," for the department. Block said he is unaware of any attempts by anyone in the department to withhold income information for personal gain.
Likening Music department professors' jobs to that of a waitress, Block said the lessons supplement professors' incomes and are just one of many ways the department reaches out to the community.
"Albuquerque is such a low-ball market in terms of music lessons," Block said. "We are providing an important service to people interested in learning more about the art of music."
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UNM attorney Nick Estes said at Block's request, University Counsel conducted an investigation last year into the legality of private music lessons being given on campus. After looking into the matter, Estes said he was "comfortable that they are not a violation of University codes." However, he said he was unaware of the tax evasion allegations, and said he had not looked into them.
"Music lessons are comparable to consulting that other faculty members are allowed to do on a part-time basis," Estes said. "That kind of activity is very common at colleges around the country."
According to a provision in UNM's Faculty Handbook, faculty members are allowed to participate in public services that arise from their role in the University. "These activities normally involve the sharing and application of faculty expertise to issues and needs of the civic community in which the University is located," according to the provision.
Ricky Bejarano, director of the audit and compliance division of the New Mexico Tax and Revenue department, said all income is subject to gross receipts tax, and any attempts to conceal income "is a very serious offense. Gross receipts tax doesn't only apply to tangible items, but to any and all means of income," Bejarano said.
He urged anyone who may be withholding income to report it to his office.
Individuals who admit to the crime and submit themselves to an audit are allowed to pay outstanding taxes within 30 days of doing so penalty free, Bejarano said.
However, once the Tax and Revenue department approaches alleged offenders, an additional 15 percent is applied to the outstanding debt.
"Being a delinquent tax payer is more serious than most people think," he said. "We are always looking for people attempting to evade taxes, and we use whatever means necessary to recoup the money they owe."
Bejarano said the department plans to investigate the income of several UNM Music department faculty members.
Many faculty members in the Music department said they are aware of the private lessons and have heard rumors about tax evasion techniques.
Karl Hinterbichler, Music department graduate coordinator, said private music lessons have become a permanent fixture in the department.
"They happen all the time," Hinterbichler said.
He added, though, that it would be difficult to track down all faculty members' records to see just how much they are making from the lessons.
Starner said he knows of several faculty members who see as many as 20 students a week at a cost of $25 to $35 per hour.
"I personally know some professors who haven't paid taxes on these lessons for 25 years," he said. "This represents an enormous ethical problem in the department of music. Unfortunately, administrators have turned a blind eye to this problem, effectively sweeping it under the rug."
James Moy, dean of the College of Fine Arts, said he is unaware of any illegal activities occurring in the Music department, and he has no problem with professors using their University offices for personal meetings.
"I've always felt that personalized one-to-one discussions are a good complement to the sometimes impersonal mass lecture," Moy wrote in an e-mail.
