New Mexico Instructions for Form CIT-1 Corporate Income and Franchise Tax Return

Instructions for Form CIT-1 Corporate Income and Franchise Tax Return
Form CIT-1 Instructions
2023 New Mexico

Instructions for Form CIT-1
Corporate Income and Franchise Tax Return

Due Dates

Corporate income and franchise tax is due on or before the due date of the federal corporate income tax return for the taxable
year. The due date is extended for taxpayers who e-file and e-pay using electronic media approved by the New Mexico
Taxation & Revenue Department. The extended due date is the last day of the month the corporation’s federal corporate
income tax return is originally due for the taxable year.

Privacy Notification and Confidentiality

The New Mexico Taxation and Revenue Department requires each
taxpayer to furnish a federal employer identification number (FEIN)
for taxpayer identification. The Department protects all information
supplied electronically by taxpayers using encryption and firewalls.
Taxpayer information on returns is protected in accordance with
the confidentiality provisions of the Tax Administration Act, Section
7-1-8 NMSA 1978.

Contact Information

You can contact the Department by mail, email, or phone.
New Mexico Taxation and Revenue Department
Corporate Income and Franchise Tax
P. O. Box 25127
Santa Fe, NM 87504-5127

IMPORTANT: If a taxpayer furnishes a truncated FEIN, such as
XX-XXX1234, the return is incomplete and the Department sends
it back to the taxpayer to refile.

[email protected]
(505) 827-0825 in Santa Fe.

•	 Forms Covered in These Instructions

FYI-106

•	 CIT-1, NM Corporate Income and Franchise Tax Return

•	 CIT-A, NM Apportioned Income for Multistate Corporations
•	 CIT-B, NM Allocation of Non-Business Income
•	 CIT-C, NM Foreign Dividend Deduction

•	 Form CIT-PV, Regular Tax Payment Voucher
•	 Form CIT-ES, Estimated Tax Payment Voucher
•	 Form CIT-EXT, Extension Tax Payment Voucher

Publication FYI-106, Claiming Business-Related Tax Credits
for Individuals and Businesses, provides information about the
various non-refundable and refundable tax credits to claim on
CIT-CR. Click www.tax.newmexico.gov/forms-publications/, then
Publications, FYIs, and 100 Series-General Information.

and E-Pay Services
	E-File
			
You can use Taxpayer Access Point (TAP) or third-party software
through Federal/State filing to e-file tax returns.

FYI-350
Publication FYI-350, Corporate Income Tax and Corporate
Franchise Tax, details various aspects of the New Mexico
corporate income and franchise tax program. For a copy,
click www.tax.newmexico.gov/forms-publications/, then
click Publications, FYIs, and 300 Series-Income Taxes.

2023 Legislative Summary
For information about New Mexico tax law changes enacted
during 2023, see LS-2023 Legislative Summary 2023. A
summary is available each year to describe new legislation
passed during the year that affects the Department.

Using TAP

E-file the 2023 CIT-1, New Mexico Corporate Income and
Franchise Tax Return, and make payments using TAP.

Using Federal/State Filing

E-file the following business income tax returns through the
Federal/State filing program using third-party software:

•	 Corporate Income and Franchise Tax
•	 Sub-Chapter S Corporate Income and Franchise Tax
•	 Pass-Through Entity Information Report
•	 Form RPD-41367, Pass-Through Entity Withholding 	
Detail (PTW-D) Report

For a summary, go to www.tax.newmexico.gov, click FORMS
& PUBLICATIONS, then Publications, then Legislative
Summaries.

CIT-1, CIT-A, CIT-B, CIT-C, Vouchers

		

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Contact Our Local Offices

Local tax offices can provide full service and information about the Department's taxes, programs, and forms as well as
specific information about your filing situation.

Albuquerque

Farmington

Roswell

Santa Fe

Taxation & Revenue Department
10500 Copper Ave
P.O. Box 8485
Albuquerque, NM 87198-8485

Taxation & Revenue Department
400 North Pennsylvania, Suite 200
P.O. Box 1557
Roswell, NM 88202-1557

Taxation & Revenue Department
3501 E. Main Street, Suite N
P.O. Box 479
Farmington, NM 87499-0479

Las Cruces

Taxation & Revenue Department
2540 S. El Paseo, Building #2
P.O. Box 607
Las Cruces, NM 88004-0607

Taxation & Revenue Department
1200 South St. Francis Drive
P.O. Box 5374
Santa Fe, NM 87502-5374

Call Center: 1-866-285-2996

Use Our Online Services

https://www.tax.newmexico.gov/online-services/

	 Ask a question.
For questions about state tax policies, legislation, regulations, and rulings, email [email protected].
For questions about the CIT-1 return, email [email protected].

	 E-file and e-pay taxes with TAP using a credit card or an electronic check.
	

Taxpayer Access Point (TAP), our secure resource at https://tap.state.nm.us, lets you e-file certain returns and e-pay
taxes.

	

A convenience fee will be calculated on credit card transaction amounts. It covers costs companies bill us when you use
this payment option. Or e-pay by electronic check at no charge. An electronic check authorizes us to debit the checking
account in the amount and on the date you specify.

	 Check the status of an account and more with TAP.
	

With TAP you can also check the status of tax accounts, register a business, change an address, and manage tax account
history.

	 Save time with a directly deposited refund.
	

To request direct deposit of a refund, fill in the Refund Express section at the bottom of CIT-1, page 1.

	 Download forms and publications.
	

For the latest and prior year forms and publications, go to www.tax.newmexico.gov/forms-publications/.

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Contents
Basic Guidelines........................................................................................................................... 3
Due Dates.................................................................................................................................... 3
Timely Returns............................................................................................................................. 3
Who is Required to File CIT-1 Return.......................................................................................... 4
Who is Required to Pay Franchise Tax........................................................................................ 4
Which Return to File..................................................................................................................... 4
Assembling the Return................................................................................................................. 4
General Instructions..................................................................................................................... 4
Other Documents That May Be Required.................................................................................... 5
Amended Returns........................................................................................................................ 6
Payment Guidelines and Information........................................................................................... 6
Interest and Penalties................................................................................................................... 6
After You File the Return.............................................................................................................. 7
Line Instructions to Complete the CIT-1 Return and Schedules.................................................. 8
CIT-1, Page 1............................................................................................................................... 8
CIT-1, Page 2..............................................................................................................................11
When To Use Schedule CIT-A.................................................................................................... 16
Completing Schedule CIT-A....................................................................................................... 17
When to Use Schedule CIT-B ................................................................................................... 21
When to Use Schedule CIT-C.................................................................................................... 22
Completing Vouchers and Payments......................................................................................... 23
Mailing a Voucher and Payment................................................................................................. 23
CIT-PV........................................................................................................................................ 23
CIT-ES........................................................................................................................................ 23
CIT-EXT...................................................................................................................................... 24
New Mexico Taxpayer Bill of Rights........................................................................................... 25

Basic Guidelines

•	 Round up to the next dollar.
•	 References to federal form line numbers correspond to the
most recent federal forms available. If they're incorrect, use
the line numbers from the actual form.
•	 Use approved, high-quality original state forms and vouchers. The Department only accepts prescribed forms.
•	 Separately pay tax due and estimated taxes.
•	 Do not staple or tape the return or any attachments.
•	 Keep copies of the return and all attachments.

Due Dates

The due dates of the CIT-1 return for the taxable year conform to
the due dates instituted at the federal level. See the next table.

CIT-1, CIT-A, CIT-B, CIT-C, Vouchers

		

C Corporation
Filing Period
Calendar year
Federal Form 1120

Due Date
April 15, 2024

Fiscal year end other than 15th day of 4th month after year end
December 31 or June 30
June 30 fiscal year
Federal Form 1120

September 16, 2024

Timely Returns

A CIT-1 and payment are timely if the Untied States Postal
Service postmark on the envelope bears a date on or before
the due date. If the due date falls on a Saturday, Sunday,
or a state or national legal holiday, the return is timely if
the postmark bears the date of the next business day. Delivery through a private delivery service is timely if the date
recorded or marked by the private delivery service is on or
before the due date.

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General Instructions
Who is Required to File CIT-1 Return

Every corporation and every unitary group of corporations
with income from activities or sources in New Mexico and
required to file a federal Form 1120, U.S. Corporation Income
Tax Return or equivalent return, must file a CIT-1, New
Mexico Corporate Income and Franchise Tax Return to
the New Mexico Taxation and Revenue Department (the
Department). This includes:
•	 All corporations organized under the laws of the State of
New Mexico, whether they have New Mexico income or
not
•	 Out-of-state corporations that derive income from business transactions, property, or employment in New Mexico whether individually or through part of a unitary group
•	 Corporations, exempt from federal income tax under the
Internal Revenue Code (IRC), that have unrelated business income
•	 All other business entities that are required or elect to file
a federal Form 1120, including partnerships and limited
liability companies (LLCs) treated as corporations by the
Internal Revenue Service (IRS)
Exceptions
The following are exempt and not required to file a CIT-1 return:
•	 Insurance companies and reciprocal or interinsurance
exchanges that pay a premium tax to New Mexico
•	 Rural electric cooperatives established under the Rural
Electric Cooperative Act, Section 62-15-28 NMSA 1978

Who is Required to Pay Franchise Tax

All corporations engaging in business in New Mexico and
every domestic or foreign corporation having or exercising its
corporate franchise in this state, whether actively engaged
in business or not, must file a CIT-1, either separately or as
part of a filing group, and pay the $50 franchise tax, even if
no income tax is due. This includes disregarded corporations
doing business in New Mexico and the following:
•	 Corporations with unrelated business income
that are exempt from federal income tax, such as homeowner's associations and 501(c)(3) organizations
•	 All corporations that are members of a filing group
NOTE: If this return is for a filing group, make sure the
If you file federal form
1065

	

1120	

total on line 23 equals the amount on CIT-1, page 1, line
I, column 4.
•	 Limited liability companies that are required or elect to
file as a corporation for federal income tax purposes and
exercise its franchise in New Mexico
•	 Corporations with no nexus in New Mexico pursuant to
P.L. 86-272 (not immune from paying franchise tax)
Exceptions
The following entities are exempt and not required to file a
New Mexico Corporate Income and Franchise Tax Return:
•	 Corporations exempt from federal income tax under the
IRC that have no unrelated business income
•	 Insurance companies and reciprocal or interinsurance
exchanges that pay a premium tax to New Mexico
•	 Rural electric cooperatives established under the Rural
Electric Cooperative Act

Which Return to File

Fiscal-year and short-year filers use the CIT-1 return for
the tax year when the fiscal year or short year begins. For
example, if the tax year begins June 30, 2023, use the 2023
CIT-1 return, even though the ending date of the tax year
is 2024. In general, the federal return you are required to or
elect to file determines the New Mexico income tax return
you file, as shown in the next table.

E-File Mandate

The corporate income tax return is under a 100% e-file
mandate. Details can be located on our website https://
www.tax.newmexico.gov/forms-publications/ under E-File
and E-Pay Mandates.
If the corporation is unable to file electronically because a
hardship exists, the corporation may request Department
approval to file by paper. The corporation may request approval by filing Form RPD-41350, E-File Exception Request
or Form RPD-41351, E-file and E-Pay Waiver Request. The
request must be received by the Department at least 30 days
before the corporation’s electronic report is due.

Assembling the Return

For faster processing, please submit forms in the following
You must file New Mexico form

U.S. Return of Partnership Income

PTE

Information Return for Pass-Through Entities

U.S. Corporation Income Tax Return

CIT-1

Corporate Income and Franchise Tax Return

1120-REIT U.S. Income Tax Return for Real Estate Investment Trusts

S-Corp Sub-Chapter S Corporate Income and Franchise Tax Return

1120S 	

U.S. Income Tax Return for an S Corporation

S-Corp Sub-Chapter S Corporate Income and Franchise Tax Return

1040 	

U.S. Individual Income Tax Return

PIT-1

Personal Income Tax Return

1041

U.S. Income Tax Return for Estates and Trusts

FID-1

Fiduciary Income Tax Return

	

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General Instructions
top to bottom order:
•	 CIT-1, pages 1 and 2
•	 For all multistate filers:	
•	 CIT-A
•	 CIT-B
•	 CIT-C
•	 CIT-S
•	 RPD-41379 Schedules 1, 2a, 2b, 3a, and 3b
•	 CIT-CR, tax credits and required attachments
•	 Federal Form 1120, pages 1 through 6 only *
•	 Any other required forms and attachments (see Other
Forms to File)
* If the return is for a filing group that files on a worldwide
combined or water's edge basis, attach a pro forma 1120
that includes all of the members and combines their items
of income and deductions following the IRC and federal
consolidated filing rules, unless otherwise indicated. If the
filing group files on a consolidated basis, the group must
be the same as the federal consolidated group. If the return
is for a corporation that is part of a unitary group but is not
properly included in the unitary group, that corporation must
file a separate return to report any tax due to New Mexico
and should attach a pro-forma 1120 showing items of income
and deductions following the IRC on a separate entity basis.
NOTE: If you include with the CIT-1 a pro forma federal return,
write pro forma across the top of the federal return. If you
include a copy of a state form as backup for an amended
return, write Do Not Process across the top of the return.
IMPORTANT: If any required forms or attachments are
missing, the New Mexico return is not complete and the
Department cannot process it.
Fully completed means a return that complies with all
the instructions for the return and contains all attachments
required by those instructions.

Other Documents That May Be
Required

This section describes the other forms and statements that
may be required.
RPD-41096, Extension of Time to File
If a copy of the automatic or approved federal extension
form accompanies the CIT-1 when you file, the Department
accepts the extended time the Internal Revenue Service (IRS)
granted and you do not need to file a New Mexico extension.
If the corporation or filing group has not received a federal
extension and needs an extension of time to file CIT-1, or if
the corporation or filing group needs additional time to file
CIT-1, CIT-A, CIT-B, CIT-C, Vouchers

		

CIT-1 beyond the federal extension date, request an extension
from the Department. New Mexico requires the request by
letter or by filing RPD-41096, Extension of Time to File, on
or before the due date of the return.
Annual Withholding Statements
If you report amounts withheld on CIT-1, lines 28 or 29, include
a copy of all annual information returns and withholding
statements issued to the corporation that show income
and New Mexico income tax withheld. These are annual
information returns and statements:
•	 RPD-41285, Annual Statement of Withholding of Oil and
Gas Proceeds
•	 RPD-41359, Annual Statement of Pass-Through Entity
Withholding
•	 Form 1099-MISC or equivalent
IMPORTANT: To receive proper credit for withholding, you
must attach all annual statements to the CIT-1. A Schedule
K-1 or its equivalent is not sufficient evidence of New Mexico
income tax withheld.
RPD-41379, 2023 New Mexico Corporate Income Tax
Net Operating Loss Carryforward Schedules 1, 2a, 2b,
3a, and 3b.
If the return is for a corporation or filing group that has a
net operating loss deduction, include RPD-41379, 2023
New Mexico Corporate Income Tax Net Operating Loss
Carryforward Schedules 1, 2a, 2b, 3a, and 3b with the CIT1. On these forms, you will show:
•	 Each year the net operating was generated, any adjustments to the amount of the loss, how much of the net
operating loss carryover was applied to prior years and
when, and the amount of apportioned net operating loss
carryover remaining
•	 For members of a filing group who in prior years filed as
separate entities, you will complete additional schedules
2a and 2b for each company that had a net operating loss
carryover
RPD-41287, 2023 Calculation of Penalty and Interest
on Underpayment of Estimated Tax
If the corporation has seasonal or annualized income and
wants to reduce penalty and interest on underpayment
of estimated tax, complete and file RPD-41287, 2023
Calculation of Penalty and Interest on Underpayment of
Estimated Tax.
Schedule CIT-CR, New Mexico Tax Credit Schedule
To claim any non-refundable or refundable credits,
complete and file Schedule CIT-CR with any required
backup documents. For information about credits,
see FYI-106, Claiming Business-Related Tax Credits
for Individuals and Businesses. To find FYI-106, click
www.tax.newmexico.gov/forms-publications/, then click
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General Instructions
Publications, FYIs, and 100 Series-General Information.
RPD-41367, Pass-Through Entity Withholding Detail
(PTW-D) Report
If the return is for a corporation of filing group that includes a
personal services business required to withhold on payments
for certain services, file RPD-41367. A personal services
business is a business organization that receives payments
for the services of a performing artist for purposes of the
film production tax credit.

Amended Returns

To amend a CIT-1 return, follow these steps:
1.	 Complete the CIT-1 return for the year amended. Selfgenerated schedules or other documents will not be
accepted in lieu of a completed and accurate return.
2.	 Check the "Amended" box and indicate the Type
of amended return. If applicable, provide the Final
Determination Date.
3.	 Attach all schedules previously filed with the original
return.
4.	 If you want the Department to compute penalty and
interest, leave CIT-1, page 2, lines 31 and 32 blank.
5.	 If additional tax is due, include payment for the full amount
and, unless you left lines 31 and 32 blank in step 4,
include interest calculated from the date the original
return was due and any applicable penalty.
NOTE: Do not attach a copy of the originally filed CIT-1 as
backup for the amended return.
For more detailed information related to Amended Returns
see line instructions for 4a and 4b.

Payment Guidelines and Information

Taxpayer Access Point (TAP), our secure resource at https://
tap.state.nm.us, lets you e-file and e-pay taxes.
NOTE: For more information about TAP, see page 2 of these
instructions.
When to Use a Payment Voucher
Use a payment voucher when you send a payment by mail.
In the envelope, please include a check or money order with
the payment voucher.
Vouchers that Work in Our System
To make sure the Department can properly process the
payment voucher, follow these rules:
•	 Use the original voucher, not a photocopy.
•	 Cut on the dotted line for correct sizing.
•	 If the voucher has a scanline, do not write on or near it.

CIT-1, CIT-A, CIT-B, CIT-C, Vouchers

		

NOTE: For details about completing CIT-PV, CIT-ES,
and CIT-EXT vouchers, see Completing Vouchers And
Payments near the end of these instructions.
Paying Taxes
You can use the following to make payments:
•	 Check or money order
•	 Electronic check
•	 Credit card
When you provide a check as payment, you authorize the
Department to use information from the check to make a
one-time electronic fund transfer from the account. When
we use information from the check to make an electronic
fund transfer, funds may be withdrawn from the account
as soon as the same day you make the payment.
Corporations Required to Make Estimated Payments
A corporation or filing group is required to pay estimated
corporate income tax payments if all the following are true:
•	 The corporation or filing group is subject to corporate income tax.
•	 The tax after applicable credits is $5,000 or more in the
current tax year.
When to Make an Extension Payment
Make an extension payment when you receive either a federal
automatic extension or a New Mexico extension. An extension
payment towards the tax liability avoids accrual of interest.
IMPORTANT: An extension of time to file the CIT-1 prevents
penalty from being assessed during the periods of the
extension but does not extend the time to pay. If tax is due,
interest continues to accrue. See the next section for details.
What Makes a Payment on Time
Tax payments are timely if the envelope's postmark bears a
date on or before the due date. If the due date is on a Saturday or a Sunday, or on a state or national legal holiday, the
payment is timely if the postmark bears the date of the next
business day. Delivery through a private delivery service is
timely if the date recorded or marked by the service is on or
before the due date.

Interest and Penalties

This section gives you general instructions and information
about interest and penalties.
Interest On Taxes Underpaid Or Not Paid And IRC Rates

Interest accrues on tax, including estimated tax, underpaid
or not paid on or before the due date of the CIT-1, even if
you receive an extension of time to file. Interest is a charge
for the use of money and by law cannot be waived.
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General Instructions
Interest is calculated on a daily basis at the rate
established for individual income tax purposes by the IRC.
The IRC rate, which changes quarterly, is announced by the
IRS in the last month of the previous quarter. The annual and
daily interest rates for each quarter are posted on our website
at https://www.tax.newmexico.gov/individuals/file-yourtaxes-overview/penalty-interest-rates/.
Negligence Penalty for Late Filing or Late Payment
The Department imposes a penalty when a return is not
filed or paid timely. The penalty is 2% of the tax due for each
month, or partial month, from the date the return was due,
not to exceed 20% of tax due. The penalty does not apply
if the entity has an extension of time to file and the tax is
paid by the extended due date.
Underpayment Penalty and Interest for Estimated Tax
The penalty is 2% of the tax due for each month, or partial
month, from the date the return was due. Interest is calculated
on a daily basis at the rate established for individual income
tax purposes by the IRC.
NOTE: For more information about estimated tax calculations, in the Completing Vouchers and Payments section
near the end of these instructions, go to CIT-ES and see
Calculating a Quarterly Estimated Payment.
When Penalty and Interest Stop Accruing
After the principal tax liability is paid, penalty and interest
stop accruing.
Penalty on a Check Not Paid
A check not paid by the financial institution on which it is drawn
does not constitute payment. The Department assesses the
corporation a minimum penalty of $20 in addition to other
applicable penalties and interest.
A Refund and Possible Interest on the Refund
If the return shows an overpayment and you requested a
refund of all or part of the overpayment, please allow at least
12 weeks for processing before contacting the Department.
Processing time varies according to when you file the return.
You may be entitled to interest on an overpayment under
certain conditions. The interest rate is the same charged for
underpayments.
The Department shall pay no interest in any of these situations:
•	 If the interest is less than $1.00
•	 If the refund is approved within 55 days of the date of the
claim for refund for current tax year
•	 If the refund is approved within 120 days of the date of
the claim for refund for prior tax years
•	 If the Department cannot process the CIT-1 due to missing information
CIT-1, CIT-A, CIT-B, CIT-C, Vouchers

		

•	 If the interest is for a refund of any credits claimed for the
Investment Credit Act, Laboratory Partnership with Small
Business Tax Credit Act, Technology Jobs and Research
and Development Tax Credit Act, Film Production Tax
Credit Act, Affordable Housing Tax Credit Act, Rural Job
Tax Credit, or High wage Job Tax Credit.
To process a CIT-1, the return must be fully completed. This
means the return complies with all instructions for the return
and contains all attachments required by those instructions.
The Department pays any refund interest due when a return
is complete.
NOTE: For a list of required forms, see Assembling The
Return earlier in these instructions.
Collection of Debts from a Refund
If the corporation owes other taxes to the Department, we
keep all or part of an overpayment. The Department applies
the amount due to the liability and notifies you.
If the corporation owes amounts due under the Unemployment Compensation Law or the Workers' Compensation
Administration Act, the law under the Intercept Act also
requires the Department to transfer all or part of an overpayment to those accounts. The Department refunds any
amount over the liability and debt.

After You File the Return

The return may be subject to further review, verification,
or correction any time after you file the return. New Mexico, pursuant to reciprocal information exchange agreements, exchanges information with the IRS, other state
agencies, and taxing authorities in other states.
Occasionally, calculation errors in a tax return delay
processing or result in adjustments to a refund or the
amount you owe. If the Department adjusts the tax return
or issues an assessment of additional tax, the Department provides you a description of your rights as a taxpayer.
If you disagree with any adjustment the Department
makes, follow the procedures in Publication FYI-406,
Your Rights Under the Tax Law. FYI-406 describes how
to dispute the Department's adjustment or assessment
through either the claim-for-refund procedure or the protest procedure.
You can get a copy of Publication FYI-406 at www.tax.
newmexico.gov/forms-publications/. Click Publications,
FYIs, and 400 Series-Tax Administration.

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Line Instructions to Complete the CIT-1 Return and Schedules
CIT-1, Page 1

Line 1a through Line 6d
Type or print the information at the top of the CIT-1 return as
described here. Be aware that, unless you indicate otherwise,
the corporation named will be deemed to be designated to
act as the principle corporation for purposes of receiving
refunds of tax paid, make elections on behalf of, or perform
other actions for the filing group.
Line 1a. The registered name of the taxpayer. If a single
corporation, the corporation's registered name. If a filing
group, the designated member of the filing group.
Line 2a. Number and street name of the corporation's
mailing address.

Box 4a. If this is an original return, mark box 4a.
Box 4b. If this is an amended return, mark box 4b and
continue to lines 4b.(i) and 4b.(ii) for Type and Date below.
If you check the amended box, you must complete the Type
and Date lines, if they are applicable, for your amendment
reason. See table T1. Amended Reasons below for more
information.
Line 4b.(i) Type. (Required) Review table T1. Amended
Reasons below and determine which Amended Reason fits
your tax situation. Carry the two-digit Type Code to 4b.(i) on
page 1 of your return.

Line 3a. City, state, and postal or ZIP code of the corporation's
mailing address. Verify that the entire mailing address is
correct.

Line 4b.(ii) Date. If your amended reason is due to an RAR
(Type 01) or FAR (Type 03) provide the Final Determination
Date on this line. Important: Format requirement MM/DD/
CCYY.

Line 3b. If the corporation's address is a foreign address,
enter the country's full name. Follow the country's practice
to enter the foreign province and/or state.

NOTE: A complete amended return indicating AmendedFAR is sufficient to meet the requirement of filing a Federal

T1. Amended Reasons
Type Amended
Code Reason

Amended
Description

01

Amended- RAR

Report changes resulting from an IRS audit and their Revenue Agent’s Report (RAR) within 180 days of the
date that the federal adjustments are final. Attach a copy of the RAR including spreadsheets that detail the
federal adjustments by company name.

02

AmendedCapital Loss

A taxpayer may carry back a federal capital loss as allowed by the IRC only if it does not increase or
create a net operating loss in the tax year to which it is carried back. For the Department to process the
amended to carry back a capital loss, always include the following:
●	 A schedule showing the application of the capital loss for each carryback and carryover year
●	 A copy of federal Form 1139 or 1120X filed with the IRS
A taxpayer's capital loss may not be carried back or forward to any other taxpayer. If the taxpayer is a filing
group, its capital losses may not be carried back or forward to offset any other group's or corporation's taxable income.

03

Amended- FAR

Federal adjustments arising from a partnership level audit or an administrative adjustment request. Note:
This amendment reason is sufficient to fulfil the Federal Adjustment Report (FAR) required by Section 7-113 NMSA 1978.
●	 In case of an audited partnership, file the returns required to be filed no later than 90 days after the final
determination date.
●	 In the case of a tiered partner of an audited partnership, file the returns required no later than 90 days
after the final determination date.
●	 For taxable direct partners of the audited partnership, no later than 180 days after the final determination
date
●	 For taxable indirect partners of the audited partnership, no later than 180 days after the time for the audited partnership's filing and furnishing statements to tiered partnerships and their partners as established
by the IRC.

04

AmendedError on Original

If you are amending due to making an error on your original return filing (i.e. calculation errors, misreported
figures, etc.), attach an explanation for all changes.

05

Amended- Other

If the amended return reports changes other than the reasons provided above, attach copies of all applicable federal forms, schedules, and attach an explanation for all changes.

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CIT-1, Page 1
Adjustment Report (FAR) with the New Mexico Taxation and
Revenue Department under Section 7-1-13 NMSA 1978.
NOTE: For more information about amended returns, see
Amended Returns in the General Instructions section.
Line 5a. The corporation’s FEIN is required.
IMPORTANT: The Department cannot process a return
without the FEIN. Failure to provide the FEIN results in
processing delays and may cause rejection of the return.
Line 5b. This is the identification number the New Mexico
Secretary of State issued to the corporation when the
corporation formed or registered to do business in New
Mexico.
Line 6a and 6b. Fiscal year or short-year filers enter tax
year start and end dates (the dates the corporation's books
open and close for the tax year) from their federal return.
Line 6c. If the due date was extended, enter the date and
include a copy of the extension with the CIT-1.
Line 6d. Enter the best contact phone number for the
corporation.
Line A through Line J
Complete all information in Lines A through J, and mark all
relevant boxes.
Line A and A1. The state where and the date when the
corporation was incorporated.
Line B. Date the corporation began business in New Mexico.
Line B1. The state where the corporation's commercial
domicile is located.
Line C. Name and New Mexico address of a domestic
corporation or individual resident responsible for receiving all
official documents on the corporation's behalf during normal
business hours, and forwarding them to the corporation.
Line D. The corporation's 5- or 6-digit NAICS code.
This is the North America Industry Classification System business activity code reported for New Mexico
and federal filing purposes. If you do not know the NAICS code, see the instructions for federal returns at
https://www.irs.gov.
Line D1. The NAICS category for the principal business
activity associated with the NAICS code.
Line E and E1. A unitary group doing business in New
Mexico must file a worldwide combined group return unless
CIT-1, CIT-A, CIT-B, CIT-C, Vouchers

		

the group properly makes an election to file on a water's
edge or consolidated group basis. See below. Any member
of the unitary group that is not part of the water's edge or
consolidated filing group must file a separate return. If this
is the return for a unitary group (worldwide, water's edge, or
consolidated), mark YES. If you do not meet the definition
of a unitary group, mark NO.
Definition of a unitary group.
A unitary group is a group of two or more corporations,
including captive real estate investment trusts, that are
related through common ownership and are economically
interdependent with one another as demonstrated by
centralized management, functional integration, and
economies of scale.
Not included in a unitary group are S corporations, insurance
companies subject to the provisions of the New Mexico
Insurance Code or insurance companies that would be
subject to the insurance code if the company engaged in
business in the state, or real estate investment trusts that
are not captive real estate investment trusts.
Definition of common ownership.
"Common ownership" means the direct or indirect control
or ownership of more than 50% of the outstanding voting
stock, ownership of which is determined pursuant to Section
1563 of the Internal Revenue Code, as that section may be
amended or renumbered, of:
(1) a parent-subsidiary controlled group as defined
in Section 1563 of the Internal Revenue Code, except hat
50% shall be substituted for 80%;
(2) a brother-sister controlled group as defined in Section
1563 of the Internal Revenue Code; or
(3) three or more corporations each of which is a member
of a group of corporations described in Paragraph (1) or
(2) of this subsection, and one of which is:
(a) a common parent corporation included in a group of
corporations described in Paragraph (1) of this subsection; and
(b) included in a group of corporations described in
Paragraph (2) of this subsection;
A unitary group of corporations must file a return properly
reporting and paying tax on the worldwide apportioned
income of the unitary group unless the group properly elects
to report and pay tax on taxable income as a water's-edge or
consolidated group. Indicate which type of filing group the
return is for by marking the box on Line E1. If the corporation
is a member of a unitary group but is not included in the filing
group, it is not relieved of tax that it may owe on a separate
entity basis and must file a separate return. Such a corporation
should check the box for Member of a Unitary Group Filing
Separately and indicate the name of its parent corporation.

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CIT-1, Page 1
•	 A worldwide combined group means all members of a
unitary group, except members that are exempt from
corporate income tax pursuant to Section 7-2A-4 NMSA
1978, irrespective of the country in which the corporations are incorporated or conduct business activity.
•	 A water's-edge group means all corporations that are
part of a unitary group, except for corporations that are
exempt from corporate income tax pursuant to Section
7-2A-4 NMSA 1978, and corporations, wherever organized or incorporated, that have less than 20% of their
property, payroll, and sales sourced to locations within
the United States, following the sourcing rules of the Uniform Division of Income for Tax Purposes Act., Sec. 7-4-1
NMSA 1978.
•	 A consolidated group means the group of entities properly filing a federal consolidated return under the Internal
Revenue Code for the taxable year. Corporations electing to file a consolidated return must file on that same
basis for federal income tax purposes.
NOTE: Once a unitary group has properly made an election
to file as a water's-edge or consolidated group, the members
of that filing group shall file a return on that basis for at
least seven consecutive years unless the secretary grants
permission otherwise. Members of the unitary group that are
not part of the filing group shall file returns and pay tax on
a separate corporate basis. Corporations that are part of a
unitary group filing a return are jointly and severally liable
for the tax imposed pursuant to the Corporate Income and
Franchise Tax Act on taxable income.
For more information about New Mexico filing requirements,
see Publication FYI-350, Corporate Income and Corporate
Franchise Tax. To get a copy, click www.tax.newmexico.
gov/forms-publications/, then Publications, FYIs, and
300 Series-Income Taxes.
Line F boxes and F1. New Mexico requires corporations
to use the same accounting method for New Mexico and
federal corporate income tax purposes.
Mark one of these boxes to show the method of accounting:
•	 Cash
•	 Accrual
•	 Other, such as completed contract and percentage of
completion. If you mark this box, enter the accounting
method in F1.
Line G boxes and G1. Is this the final return? If no, go to line
H. Otherwise, mark one of these boxes to show the causative
action and in G1, enter the date of the action:
•	 Dissolved
•	 Merged or reorganized
•	 Withdrawn
Line H boxes. Mark YES or NO to answer the question about
CIT-1, CIT-A, CIT-B, CIT-C, Vouchers

		

any change in the taxpayer's federal income tax liability in
any year due to one of the following:
•	 IRS audit
•	 Filing of amended federal return not yet reported to New
Mexico
If you mark YES, submit to the Department a copy of the
amended federal return or RAR, if applicable.
Line I and Columns 1 through 4. Is this return the return
for a filing group? If no, go to line J. Otherwise, enter this
information for each corporation in the filing group. If there
are more than three members of the filing group, complete
CIT-S to add additional corporations.
•	 Column 1: The corporation's name
•	 Column 2: The corporation's FEIN
•	 Column 3: Amount of payments to apply to this return
(This column's total equals CIT-1, page, 2, line 27.)
•	 Column 4: Enter $50 for each corporation that pays franchise tax or leave blank (This column's total equals CIT1, page, 2, line 23.)
Line J. Is the legal status of the entity filing the return a
corporation? If yes, continue to line L. Otherwise, enter
the legal type of entity, such as LLC and partnership. For
example, a New Mexico partnership that elects to or is
required to file federal Form 1120 enters partnership here.
Refund Express
If you want a refund of overpaid tax and any refundable credit
(CIT-1, page 2, line 39) directly deposited into a checking
or savings account, complete the Refund Express section.
Failure to complete all lines and boxes in this section results
in the Department denying the request and mailing a paper
check to you.
NOTE: The Department is not responsible if a financial
institution refuses a direct deposit, or if misapplication of
a direct deposit refund was caused by a taxpayer's error,
negligence, or malfeasance.
Requirements for Refund Express
•	 Lines 1 and 2 and boxes 3 and 4 are complete in the
Refund Express section of CIT-1.
•	 The account must be located in the territorial jurisdiction
of the U.S.
•	 Direct deposits are only allowable to the taxpayer’s account. The Department denies any request to deposit
funds into another payee's account.
•	 The financial institution accepts direct deposits payable
to the name on the CIT-1 return.
Why Use Refund Express
•	 Prevent any mailed check delays. Refund Express does
not guarantee that you receive the refund sooner, but the
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CIT-1, Page 1 and Page 2
1540

CORPORATION'S NAME
123 Main Street
Anyplace, NM 87000

15-000000000

LE

P
AM

S

PAY TO THE
ORDER OF ___________________________________________________________________________

$

_________________________________________________________________________________________________ DOLLARS
ANYPLACE BANK
Anyplace, NM 87000

Routing
Number

Account
Number
Do not include the
check number

For _____________________________________	

________________________________________________

A211500151 A 2015551517 C 1540
refund reaches the bank more quickly.
•	 Payment is more secure. There is no check to get lost.
•	 It is convenient. Avoid an extra trip to the bank.
•	 It saves tax dollars. Direct deposit costs less than a check.
Refund Express Lines 1 and 2 and Boxes 3 and 4
Line 1. The routing number, for bank identification, has
nine digits. If the first two digits are not 01 through 12 or 21
through 32, the system rejects the direct deposit and you
receive a check. On the sample check on this page, the
routing number is 211500151.
Line 2. The account number has up to 17 characters. Include
hyphens, but omit spaces and special symbols as you enter
the number from left to right. Leave unused boxes blank. On
the sample check, the account number is 2015551517. Do
not include the check number.
Box 3. Mark an X in the Checking or Savings box to indicate
the type of account.
Box 4. Mark an X in the YES or NO box to answer whether
the funds for a refund would go to or through an account
located outside the U.S. Marking NO means the financial
institution's location is within the territorial jurisdiction of the
U.S., which includes any of the following:
•	 Within the U.S.
•	 On a U.S. military base
•	 In American Samoa, Guam, the Northern Mariana Islands, Puerto Rico, or the U.S. Virgin Islands
What Happens for Different Answers
•	 If you mark an X in the YES box, you cannot use Refund
Express. Either use a different bank account or to leave
the Refund Express section blank to receive a paper
check.
•	 If you do not answer the question, the Department mails
the refund to you in a paper check. To comply with federal
banking rules, anyone who wants their refund directly deposited into their account must answer this question.
CIT-1, CIT-A, CIT-B, CIT-C, Vouchers

		

•	 If you answer the question incorrectly, the National Automated Clearing House Association (NACHA) or the Office of Foreign Assets Control (OFAC) may delay, reject,
or freeze the refund.
•	 If the bank does not accept the Refund Express entries,
the Department mails a check to you.

CIT-1, Page 2

Follow these instructions to complete lines and boxes 1
through 39 on CIT-1, page 2, and the signature and preparer
information at the bottom of the page.
Line 1. Taxable income before NOL and special deductions. Enter the amount from federal Form 1120, line 28, or
federal Form 1120-H, line 17.
Line 1a. Captive REIT deductions. If the entity is claiming
a captive real estate investment trust (REIT) deduction, enter
the expenses and costs directly or indirectly paid, accrued,
or incurred to a captive REIT.
Captive real estate investment trust means a
corporation, trust, or association taxed as an REIT pursuant
to Section 857 of the IRC, the shares or beneficial interests
of which are not regularly traded on an established securities
market, provided that more than 50% of any class of beneficial
interests or shares of the REIT are owned directly, indirectly,
or constructively by the taxpayer during all or a part of the
taxpayer's taxable year.
Line 1b. Exempt entity deductions. Enter the amount of
any deduction, other than for premiums, for amounts paid
directly or indirectly to a commonly controlled entity that
is exempt from corporate income tax pursuant to Section
7-2A-4 NMSA 1978.
Line 2. Interest income from municipal bonds, excluding
New Mexico bonds. Enter interest income from non-New
Mexico municipal bonds and other obligations not subject
to federal income tax under IRC Section 103. Only enter a
positive number.
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CIT-1, Page 2
Line 3. Other additions to the base income of a unitary
group. If a member of a unitary group, enter the total amount of
any additions to base income deemed necessary to properly
reflect income of the unitary group, including attribution of
income or expense related to unitary assets held by related
corporations that are not part of the filing group. If this return
is for a corporation that is not a member of a unitary group,
then this line should be blank.

Line 9. Other subtractions to the base income of a
unitary group. If a member of a unitary group, enter the
total amount of any subtractions to base income deemed
necessary to properly reflect income of the unitary group,
including attribution of income or expense related to unitary
assets held by related corporations that are not part of the
filing group. If this return is for a corporation that is not a
member of a unitary group, then this line should be blank.

Line 4. Subtotal of base income after additions. Add
lines 1, 1a, 1b, 2 and 3. This entry = (line 1 taxable income
+ line 1a REIT deduction + line 1b exempt entity deductions
+ line 2 interest income from non-New Mexico municipal
bonds + line 3 other additions to base income).

Line 10. New Mexico net income. Subtract lines 5, 6, 7,
8, and 9 from 4. This entry = (line 4 subtotal of base income
- line 5 federal special deductions - line 6 interest from U.S.
government obligations - line 7 deduction - line 8 cannabis
business expense deduction - 9 other subtractions to base
income or loss).

Line 5. Federal special deductions. Enter the federal
special deductions from federal form 1120, line 29b.

Line 11. Net allocated income or loss. Enter the amount
from CIT-B, line 8.

Line 6. Interest from U.S. government obligations or
federally-taxed New Mexico bonds. You may deduct
interest or dividend income from U.S. government obligations
from the taxable income only to the extent it was included in
taxable income on CIT-1, line 1. Subtract expenses related to
income from U.S. obligations and then enter the net amount.

Line 12. Total apportionable income or loss. Subtract line
11 from line 10. Or if line 11 is a negative amount, increase
line 10 by that amount. This entry = (line 10 New Mexico base
income - line 11 net allocated non-business income, or +
line 11 net allocated non-business loss if line 10 is negative.

Allowable Deductions
•	 Interest on notes issued by Federal Home Loan Bank obligations
•	 The part of income paid by mutual funds, unit investment
trusts, and simple trusts derived from investments in U.S.
obligations
•	 Interest income from bonds issued by the state of New
Mexico or its political subdivisions to the extent it was
included in federal taxable income on CIT-1, line 1.
Deductions Not Allowable
•	 Income from Fannie Mae, Ginnie Mae, Freddie Mac,
and other U.S. guarantee entities
•	 Dividends issued by Federal Home Loan Bank obligations
•	 Income from repurchase agreements of U.S. obligations
(repos)
Line 7. Deduction for certain expenses related to a New
Mexico licensed cannabis business. Enter the amount
equal to any expenditure that is eligible to be claimed as a
federal income tax deduction but is disallowed by Section
280E of the Internal Revenue Code, as that section may be
amended or renumbered.
Line 8. Deduction for certain foreign dividends, Subpart F
income, and GILTI (from CIT-C line 6). Enter from Schedule
CIT C, line 6. Include Schedule CIT-C with the CIT-1.

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Line 13. New Mexico apportionment percentage. If
on CIT-A, line 5 you show a percentage for New Mexico
apportioned income, enter the percentage. Otherwise, enter
100%.
Line 14. Income or loss apportioned to New Mexico.
Multiply Line 12 by the percentage on line 13 and enter the
amount here.
Line 15. Net New Mexico allocated income or loss. Enter
the amount from CIT-B, line 9.
Line 16. New Mexico apportioned net income or loss.
Add lines 14 and 15. This entry = (line 14 income or loss
apportioned to New Mexico + line 15 net New Mexico
allocated income or loss).
Line 17. New Mexico net operating loss deduction
not in excess of 80% of line 16. The amount on Line 17
cannot be greater than 80% of the amount on Line 16. If the
corporation or filing group is not taking a NOL deduction,
go to the next line. Otherwise, enter the New Mexico
amount of NOL deduction to apply to the New Mexico
apportioned net income.
Include RPD-41379, 2023 New Mexico Corporate Income
Tax Net Operating Loss Carryforward Schedules 1, 2a, 2b,
3a, and 3b with the return to show New Mexico NOL incurred
and applied. On these forms, you will show:
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CIT-1, Page 2
ments to the amount of the loss, how much of the net
operating loss carryover was applied to prior years and
when, and the amount of apportioned net operating loss
carryover remaining
•	 For members of a filing group who in prior years filed as
separate entities, you will complete additional schedules
2a and 2b for each company that had a grandfathered
net operating loss carryover
General Information on NOL deductions and Carryovers
•	 The New Mexico NOL deduction is the portion of the net
operating loss carryover that may be deducted from the
taxpayer’s apportioned net income under the Internal Revenue Code as of January 1, 2018 for the taxable year in
which the deduction is taken, including the 80% limitation of
Section 172(a) of the Internal Revenue Code as of January
1, 2018, calculated on the basis of the taxpayer’s apportioned net income.
•	 New Mexico conforms with the federal law regarding NOLs
before the changes provided in the federal 2022 CARES
Act. The New Mexico NOL deduction includes the 80%
limitation to the deduction that may be taken from the taxpayer’s apportioned net income and does not allow for the
carryback of an NOL deduction to prior years.
•	 A New Mexico NOL may only be carried forward.
•	 A NOL deduction includes any "grandfathered NOL carryover," the amount of net loss properly reported to New
Mexico for taxable years beginning January 1, 2013 and
prior to January 1, 2020, as part of a timely filed original
return, or an amended return for those taxable years filed
prior to January 1, 2020, to the extent such loss can be
attributed to one or more corporations that are properly
included in the taxpayer's return.
•	 The amount of grandfathered NOL carryover must be
computed by first adding back deductions taken by the
corporation or corporations for royalties or interest paid to
one or more related corporations, but only to the extent
that such adjustment would not create a net loss for such
related corporations
•	 The apportioned net loss reported on an original or
amended tax return may be carried over in the following
tax year and taken as an NOL deduction.

Line 20.

Line 18. Liquor license lessor deduction. Enter the amount
of deduction from net income for which you qualify, not to
exceed $50,000.
To qualify, a taxpayer who is a liquor license lessor and who
held the license on June 30, 2021 may claim a deduction from
net income in an amount equal to the gross receipts from
sales of alcoholic beverages made by each liquor license
lessee in an amount, if the liquor license is a dispenser’s
license and sales of alcoholic beverages for consumption off
premises are less than fifty percent of total alcoholic beverage
sales, not to exceed fifty thousand dollars ($50,000) for each
of four taxable years prior to January 1, 2026.
Line 19. New Mexico taxable income. Subtract lines 17 and
18 from line 16. This entry = (line 16 New Mexico apportioned
net income - New Mexico NOL deduction - Liquor license
lessor deduction).
Line 20. Income tax calculation. Tax on amount on line 19.
See tax table on page 13 of these instructions. This entry =
(line 19 amount (up to $500,000) x 4.8%) + line 19 amount
(in excess of $500,000) x 5.9%).
Line 21. Total tax credits applied against the income tax
liability on line 20. If you are claiming any tax credits to apply
to the income tax liability, complete Schedule CIT-CR. Then
enter the amount on CIT-CR, line A, the total of the credits
to apply to the tax liability due.
About Tax Credits and Backup Documents
•	 The sum of credits claimed on CIT-CR may not exceed
the income tax calculated on CIT-1, line 20.
•	 To calculate the amount you may claim for any tax year,
follow the directions on the tax credit claim form or in the
tax credit instructions.
•	 For the Department to consider a credit claim, you must
include with the CIT-1 the required documents for each
tax credit, along with applicable forms, statements, or
other required backup.
To see which backup documents are required to claim
a tax credit, use the CIT-CR Instructions available at

Corporate Income Tax Rates

For tax years beginning 1/1/2023, but prior to 1/1/2024

Taxable Income

Tax

Not over $500,000............................................

4.8% of net taxable income

Over $500,000.................................................
	

$24,000 plus 5.9% of the
excess over $500,000

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CIT-1, Page 2
www.tax.newmexico.gov/forms-publications/. Click Income
Taxes, Corporate Income Tax (CIT) - Current Year,
Corporate Income Tax Return Forms, and then CIT-CR
Instructions.
NOTE: For more information about business-related credits,
see FYI-106, Claiming Business-Related Tax Credits for
Individuals and Businesses. You can find FYI-106 at www.
tax.newmexico.gov/forms-publications/. Click Publications
followed by FYIs, and then click 100 Series-General
Information.
Line 22. Net income tax. Subtract line 21 from line 20. This
entry = (line 20 income tax - line 21 total tax credits). Enter
zero or a larger amount.
Line 23. Franchise tax. The $50 franchise tax is due for
each tax year, including short years. You may not prorate
the franchise tax based on a short-year return.
Every domestic or foreign entity taxed as a corporation must
pay the $50 franchise tax if any of the following requirements
are true. The entity:
•	 Transacts business in, into, or from New Mexico
•	 Derives income from property or employment within this
state
•	 Has or exercises its corporate franchise in New Mexico,
whether engaged in active business or not
•	 Is an otherwise tax-exempt corporation with unrelated
business income
IMPORTANT: It is your responsibility to comply with all
additional filing requirements imposed by the New Mexico
Secretary of State, Corporations Bureau. For information
call (505) 827-3600 in Santa Fe or toll free (800) 477-3632,
visit http://www.sos.nm.gov Click Corporations and then
select items under Domestic or Foreign.
Line 24. Total income and franchise tax. Add lines 22 and
23. This entry = (line 22 net income tax amount + line 23
franchise tax amount).
Line 25. Amended Returns Only. If this is an amended
return, enter the total amount of all 2023 refunds received
and overpayments applied to 2024.
Line 26. Subtotal. Add lines 24 and 25. This entry = (line
24 total income and franchise tax amount + line 25 refunds
and overpayments).
Line 27. Total Payments. Mark one or more of these boxes
to show the source of the total payments:
•	 Quarterly
•	 Extension
•	 Applied from prior year
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Enter the total amount of all quarterly estimated, extension,
and tax payments applied from the prior year. For amended
returns, include additional tax paid on or after the due date
of the return. Total on line 27 = amount on CIT-1, page 1,
line I, column 3.
IMPORTANT: If any amounts on line 27 were paid using an
FEIN other than the one entered at the top of CIT-1, page 1,
a schedule is required with the name and FEIN under which
the payment was made. If you filing as part of a filing group,
the CIT-1, page 1, line I entries satisfy this requirement for
the schedule.
Line 27a. If you qualify to calculate penalty and interest on
underpayment of estimated tax using method 4 and want
to see if it is possible to reduce the penalty, mark this box.
Include RPD-41287, 2023 Calculation of Estimated Corporate
Income Tax Penalty and Interest on Underpayment, with
the CIT-1.
NOTE: Generally, taxpayers who pay penalty and interest on
underpayment of estimated tax do not need to mark the box
or file RPD-41287. If estimated tax is due, the Department
calculates the penalty and interest on underpayment of
estimated corporate income tax using the lower of methods
1, 2, or 3 and sends a bill.
For a description of the four calculation methods to estimate
quarterly payments, in the Completing Vouchers And
Payments section near the end of these instructions, go
to CIT-ES and see Calculating A Quarterly Estimated
Payment.
Line 28. New Mexico income tax withheld from oil and
gas proceeds. From annual withholding statements 1099MISC and RPD-41285, Annual Statement of Withholding
of Oil and Gas Proceeds, enter the total of all New Mexico
income tax withheld from oil and gas proceeds. Include a
copy of each statement with the CIT-1.
Requirements
•	 Only report New Mexico tax withheld on oil and gas proceeds received by the corporation or corporate group
member.
•	 The only withholding statements accepted by the Department are the 1099-MISC and RPD-41285 issued to the
corporation or corporate group member.
Line 29. New Mexico income tax withheld from a passthrough entity. From annual withholding statements 1099MISC and RPD-41359, Annual Statement of Pass-Through
Entity Withholding, enter the total of all New Mexico income
tax withheld on the net income from a PTE. Include a copy
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CIT-1, Page 2
of each statement with the CIT-1.
NOTE: If RPD-41359 shows a credit for an owner's share
of entity-level tax or composite income tax, claim it here.
Requirements
•	 Only report New Mexico tax withheld on the net income
received from a PTE.
•	 The only withholding statements accepted by the Department are the 1099-MISC and RPD-41359 issued to the
corporation or corporate group member.
Line 30. Total payments and tax withheld. Add lines 27
through 29. This entry = (line 27 total payments + line 28
NM withholding from oil and gas + line 29 NM withholding
from pass-through entities).
Line 31. Tax due. If line 26 is greater than line 30, this entry
= (line 26 subtotal - line 30 total payments and tax withheld).
Line 32. Penalty. The maximum penalty is 20% of the tax
due. You owe penalty if you:
•	 You file late and owe tax.
•	 You do not pay the tax on or before the due date of the
return.
•	 You do not pay the tax on or before the extended due
date of the return.
Formula to Calculate Penalty
Penalty = tax due from line 31 x 2% x number of months or
partial months past the due date or extended due date, for
no more than 10 months.
Line 33. Interest. You owe interest if you:
•	 You did not pay the tax due on line 30 by the original due
date.
•	 You received an extension of time to file.
Formula to Calculate Interest
Interest = tax due from line 30 x daily interest rate for the
quarter x number of days late.
Line 34. Total amount due. Add lines 31 through 33. This
entry = (line 31 tax due + line 32 penalty + line 33 interest).
Line 35. Overpayment. If the amount in line 30 is greater
than the amount line 26, this is the amount you overpaid.
This entry = (line 30 total payments and tax withheld - line
26 subtotal).

Line 37. Amount of overpayment to refund. If you want
to receive a refund of all or part of an overpayment, this
entry = (line 35 overpayment - line 36 amount to apply to
the 2023 liability).
Line 38. Total portion of tax credits to refund. Enter from
Schedule CIT-CR, line B, the portion of approved tax credits
the Department may refund to you.
NOTE: CIT-CR, line A shows the amount of these credits to
apply to the tax due on the CIT-1. This is the same amount
as on CIT-1, line 21.
About the Film Production Tax Credit
The amount of film production tax credit you may claim
against tax due on this CIT-1 and the amount you may
receive as a refund are subject to certain limitations
governing the payment of film production tax credit claims.
For details about these limitations and how they may
impact the return, see the instructions for RPD-41228, Film
Production Tax Credit Claim Form.
Line 39. Total refund of overpaid tax and refundable credit
due to you. This entry = (line 37 amount of overpayment to
refund + line 38 tax credit to refund).
Taxpayer's Signature
An officer of the corporation must sign and date the CIT-1.
Enter the following information:
•	 Title [of officer]
•	 Contact phone number
•	 Taxpayer's email address
Paid Preparer's Use Only
Any person, other than an employee of the corporation, who
prepares the return for compensation must also sign and
date the return. A preparer other than an employee of the
corporation is required to enter the following:
•	 New Mexico Business Tax Identification Number (NMBTIN), if the preparer has one (formally known as CRS
number)
•	 FEIN, if applicable
•	 PTIN, the Preparer Tax Identification Number
•	 Preparer's phone number
The Department considers an improperly signed or unsigned
return invalid and incomplete for filing purposes. If the
Department receives completed information after the due
date, the Department may assess penalty and interest.

Line 36. Amount of overpayment to apply to 2024 liability.
If you want to apply some or all of an overpayment from line
35 to the 2024 liability, enter the amount to apply. Otherwise,
enter zero.
CIT-1, CIT-A, CIT-B, CIT-C, Vouchers

		

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www.tax.newmexico.gov

CIT-A: NM Apportioned Income for Multistate Corporations
When To Use Schedule CIT-A

If income of the corporation or filing group is derived from
both inside and outside New Mexico, use CIT-A to apportion
the income from the regular trade or business activities.
A corporation or filing group with 100% of its activity in New
Mexico does not need to complete Schedule CIT-A but
should enter 100% on line 13 of the CIT-1.
Complete the Items in This Sequence
If the corporation or filing group is allocating non-business
income, first complete Schedule CIT-B and then complete
CIT-A. Otherwise, start with CIT-A.
Apportionable income means income arising from
transactions and activities in the regular course of
a corporation’s trade or business. If the acquisition,
management, or disposition of the property constitutes
integral parts of the corporation’s regular trade or business,
apportionable income includes income from both tangible
and intangible property. It includes investment income related
to or used in the corporation’s overall business operations.
You are required to include on CIT-A the