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New Mexico Free Printable  for 2024 New Mexico Instructions for Form S-CORP Sub-Chapter S Corporate Income and Franchise Tax Return

Form S-Corp INS (Obsolete) is obsolete, and is no longer supported by the New Mexico Department of Revenue.

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Instructions for Form S-CORP Sub-Chapter S Corporate Income and Franchise Tax Return
Form S-Corp INS (Obsolete)

2017 New Mexico Instructions for Form S-CORP Sub-Chapter S Corporate Income and Franchise Tax Return Due Dates Sub-chapter S corporate income and franchise tax is due on or before the due date of the corporation's federal corporate income tax return for the taxable year. If you e-file and e-pay, the filing deadline is March 31, 2018, or on or before the last day of the third month following the end of the tax year. The extended due date also applies to Form RPD-41367. 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 fire walls. 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, the return is incomplete and the Department sends it back to the taxpayer to refile. [email protected] (505) 827-0825 in Santa Fe or toll free (866) 809-2335 Forms Covered in These Instructions 2017 Legislative Summary  S-Corp, Sub-Chapter S Corporate Income and Franchise Tax Return ♦♦ S-Corp-1, Income Taxable to Owners ♦♦ S-Corp-A, New Mexico Apportionment Factors Schedule For a summary, go to www.tax.newmexico.gov, click FORMS & PUBLICATIONS, then click Publications followed by Bulletins, and then 100 Series-General Information. ♦♦ S-Corp-B, Allocated Non-business Income Taxable to Owners FYI-106 ♦♦ S-Corp-C, Allocated and Apportioned Income Taxed to S Corporations  S-Corp-CR, Tax Credit Schedule  S-Corp-EXT, Extension Payment Voucher  S-Corp-PV, Tax Payment Voucher  S-Corp-ES, Estimated Tax Payment Voucher You can use Taxpayer Access Point (TAP) or third-party software through Federal/State filing to e-file tax returns. Pass-Through Entity Withholding Detail (PTW-D) Report  PTW-PV,  Publication FYI-106, Claiming Tax Credits for CRS Taxes and Business-Related Income, provides information about the various non-refundable and refundable tax credits to claim on S-Corp-CR. Click www.tax.newmexico.gov/forms-publications.aspx, then Publications, FYIs, and 100 Series-General Information. E-File and E-Pay Services  RPD-41367, For information about New Mexico tax law changes enacted during 2017, see 2017-B-100.29, Legislative Summary. A summary is available each year to describe new legislation passed during the year that affects the Department. Pass-Through Entity Withholding Detail (PTW-D) Report Tax Payment Voucher PTW-EXT, Pass-Through Entity Withholding Detail (PTW-D) Report Extension Payment Voucher Using TAP E-file the 2017 S-Corp, New Mexico Sub-Chapter S Corporate Income and Franchise Tax Return, and make payments using TAP by following these steps: 1. Click https://tap.state.nm.us. 2. Add access to an S-Corp account by following the steps in the Adding Access to Accounts video. Using Federal/State Filing 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.aspx, then click Publications, FYIs, and 300 Series-Income Taxes. S-Corp 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 - 1 - www.tax.newmexico.gov Contact Our Local Offices Local tax and revenue offices can provide full service and information about New Mexico's taxes, programs, and forms and specific information about your filing situation. If you have questions or require additional information, contact your local Taxation and Revenue Department Office. Albuquerque Farmington Roswell Santa Fe Taxation & Revenue Department Bank of the West Building 5301 Central Ave., NE P.O. Box 8485 Albuquerque, NM 87198-8485 (505) 841-6200 Taxation & Revenue Department 400 North Pennsylvania, Suite 200 P.O. Box 1557 Roswell, NM 88202-1557 (575) 624-6065 Taxation & Revenue Department 3501 E. Main Street, Suite N P.O. Box 479 Farmington, NM 87499-0479 (505) 325-5049 Las Cruces Taxation & Revenue Department 2540 S. El Paseo, Building #2 P.O. Box 607 Las Cruces, NM 88004-0607 (575) 524-6225 Taxation & Revenue Department 1200 South St. Francis Drive P.O. Box 5374 Santa Fe, NM 87502-5374 (505) 827-0951 or (866) 285-2996 toll free (505) 827-0825 for S-Corp help Use Our Online Services http://www.tax.newmexico.gov/Online-Services/default.aspx  Ask a question. For questions about state tax policies, legislation, regulations, and rulings, email [email protected]. For questions about the S-Corp 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. Use Visa, MasterCard, Discover, or American Express credit cards. A 2.40% convenience fee calculated on the amount of the transaction covers costs companies bill us when you use the card. 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. * For a list of tax programs TAP handles, on the TAP page under WITHOUT LOGGING ON, click Make a Payment, and then click Business. The drop-down box in Account Type shows all tax programs and other selections available in TAP.  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 the S-Corp return.  Download forms and publications. For the latest and prior year forms and publications, go to www.tax.newmexico.gov/forms-publications.aspx. S-Corp - 2 - www.tax.newmexico.gov Contents General Instructions....................................................................................................................... 4 Who is Required to File S-Corp Return ................................................................................................................4 Who is Required to Pay Franchise Tax.................................................................................................................4 Which Return to File..............................................................................................................................................4 Assembling the Return..........................................................................................................................................4 Other Documents That May Be Required.............................................................................................................5 Amended Returns.................................................................................................................................................6 Payment Guidelines and Information....................................................................................................................6 Interest and Penalties............................................................................................................................................7 After You File the Return.......................................................................................................................................8 Line Instructions to Complete the S-Corp Return and Schedules........................... 9 S-Corp...................................................................................................................................................................9 S-Corp-1..............................................................................................................................................................13 S-Corp-A: New Mexico Apportionment Factors...................................................................................................14 S-Corp-B: Allocated Non-Business Income Taxable to Owners..........................................................................19 S-Corp-C: Allocated and Apportioned Income Taxed to S Corporations.............................................................20 Completing Vouchers and Payments........................................................................ 21 S-Corp-PV...........................................................................................................................................................21 S-Corp-ES...........................................................................................................................................................21 S-Corp-EXT.........................................................................................................................................................22 New Mexico Taxpayer Bill of Rights.......................................................................... 23 .Basic Guidelines Due Dates  Round up to the next dollar.  References to federal form line numbers correspond to The due dates of the S-Corp return for the taxable year conform to the due dates instituted at the federal level. The due date for calendar-year filers is March 15, 2018.  Use approved, high-quality original state forms and Timely Returns the most recent federal forms available. If they're incorrect, use the line numbers from the actual form. vouchers. TRD 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. S-Corp An S-Corp return and payment are timely if the USPS 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. - 3 - www.tax.newmexico.gov General Instructions Who is Required to File S-Corp Return Corporations and limited liability companies (LLCs) that elect to be taxed as S corporations for federal income tax purposes must file a New Mexico S Corporate Income and Franchise Tax Return if any of the following is true about the entity. The entity is: ●● Registered to do business in New Mexico ●● Transacts business in, into, or from New Mexico ●● Derives any income from property or employment within New Mexico Exceptions The following entities are exempt and not required to file an SCorp 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 S 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 S-Corp return and pay the $50 franchise tax, even if no income tax is due. This includes the following: ●● Disregarded corporations doing business in New Mexico ●● 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 ●● Entities with no nexus in New Mexico pursuant to P.L. 86-272 (not immune from paying franchise tax) ●● 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 S-Corp return for the tax year when the fiscal year or short year begins. For example, if the tax year begins June 30, 2017, use the 2017 S-Corp return, even though the ending date of the tax year is 2018. 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. NOTE: The Department may require an entity that files an S-Corp return to file RPD-41367, Pass-Through Entity Withholding Detail (PTW-D) Report. When to File Other Returns If the business does not file a New Mexico S-Corp return, New Mexico may require you to file one of the following returns for New Mexico instead: • CIT-1, New Mexico Corporate Income and Franchise Tax Return • PTE, New Mexico Information Return for Pass-Through Entities • PIT-1, New Mexico Personal Income Tax Return • FID-1, New Mexico Fiduciary Income Tax Return NOTE: Entities that file a 2017 S-Corp do not also file a 2017 PTE. Assembling the Return Exceptions The only exceptions are the following: For faster processing, please submit forms in the following top to bottom order: ●● S-Corp ●● S-Corp-1 ●● Corporations exempt from federal income tax under the IRC that have no unrelated business income If you file federal form You must file New Mexico form 1065 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 1120-REIT U.S. Income Tax Return for Real Estate Investerment 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 U.S. Income Tax Return for Estates and Trusts FID-1 Fiduciary Income Tax Return 1041 S-Corp - 4 - www.tax.newmexico.gov General Instructions ●● For all multistate filers: ♦♦ S-Corp-A ♦♦ S-Corp-B ♦♦ S-Corp-C ♦♦ S-Corp-CR, tax credits and required attachments ●● RPD-41359, Annual Statement of Pass-Through Entity Withholding ●● Form 1099-MISC or equivalent ●● Federal Form 1120, pages 1 through 5 only * ●● Any other required forms and attachments (see Other Forms to File) * Corporations filing under separate corporate entity or combined filing methods must attach a pro forma federal Form 1120, pages 1 through 5. NOTE: If you include with the S-Corp return 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. 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 RPD-41096, Extension of Time to File If a copy of the automatic or approved federal extension form accompanies the S-Corp return when you file, the Department accepts the extended time the IRS granted and you do not need to file a New Mexico extension. RPD-41287, 2017 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, 2017 Calculation of Penalty and Interest on Underpayment of Estimated Tax. RPD-41227, Renewable Energy Production Tax Credit Claim Form To claim the renewable energy production tax credit, attach RPD-41227 to the return. Report the amount you claimed on Schedule S-Corp-CR. IMPORTANT: If any required forms or attachments are missing, the New Mexico return is not complete and the Department cannot process it. This section describes the other forms and statements that may be required. IMPORTANT: To receive proper credit for withholding, you must attach all annual statements to the S-Corp return. A Schedule K-1 or its equivalent is not sufficient evidence of New Mexico income tax withheld. RPD-41228, Film-Related Tax Credit Claim Form To claim an approved film-related tax credit, attach RPD-41228 to the return. Report the amount you claimed on Schedule S-Corp-CR. Schedule S-Corp-CR, New Mexico Tax Credit Schedule To claim any non-refundable or refundable credits, complete and file Schedule S-Corp-CR with any required backup documents. For information about credits, see FYI-106, Claiming Tax Credits for CRS Taxes and Business-Related Income. To find FYI-106, click www.tax.newmexico.gov/forms-publications.aspx, then click Publications, FYIs, and 100 Series-General Information. If the corporation has not received a federal extension and needs an extension of time to file its S-Corp return, or if the corporation needs additional time to file the S-Corp 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. RPD-41367, Pass-Through Entity Withholding Detail (PTW-D) Report If you are a personal services business required to withhold on payments for certain services, file RPD-41367. Annual Withholding Statements If you report amounts withheld on S-Corp, lines 12 or 13, include a copy of all annual information returns and withholding statements issued to the entity 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 IMPORTANT: Entities that file an S-Corp return do not also file PTE, New Mexico Information Return for Pass-Through Entities. S-Corp 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. On RPD-41367 (now called PTW-D), a pass-through entity (PTE) subject to withholding tax from its non-resident owner's, partner's, member's, or beneficiary's (owner's) net income according to the Oil and Gas Proceeds and - 5 - www.tax.newmexico.gov General Instructions Pass-Through Entity Withholding Tax Act (Sections 7-3A-1 through 7-3A-9 NMSA 1978) must annually report each owner’s share of net income allocable to New Mexico and remit the New Mexico tax withheld for each owner. Even if no tax was withheld, the Department requires these PTEs to file RPD-41367. Pass-through entity means a personal services business or any other business association other than any one of the following: ●● A sole proprietorship ●● An estate or trust that does not distribute income to beneficiaries ●● A corporation, limited liability company, partnership, or other entity not a sole proprietorship taxed as a corporation for federal income tax purposes for the tax year ●● A partnership that is organized as an investment partnership in which the partner’s income is derived solely from interest, dividends, and sales of securities ●● A publicly traded partnership as defined in Section 7704(b) of the Internal Revenue Code NOTE: Except for a PTE that is a personal services business, if the PTE entered into an agreement with the owner for the owner to file and pay tax due on the owner’s share of allocable net income of the PTE, the PTE must mark 2 in the PTW-D Reason Code box in Supplemental Page, column 5. To amend an S-Corp return, follow these steps: 1. Use the S-Corp return for the year amended. 2. In the upper right under CHECK ONE, mark box 4b to show this is an amended return. NOTE: if you filed a PTE return in a year prior to tax year 2011, use the PTE return for that year to amend the return. 3. Attach all schedules previously filed with the original return. 4. If you want the Department to compute penalty and interest, leave S-Corp, lines 17 and 18 blank. 5. If additional tax is due, include payment for the full amount and, unless you left lines 17 and 18 blank in step 4, include interest calculated from the date the original return was due and any applicable penalty. S-Corp NOTE: Do not attach a copy of the originally filed S-Corp return as backup for the amended return. Revenue Agent Report Requirements Report changes resulting from an IRS audit and their Revenue Agent’s Report (RAR) within 180 days of the date federal adjustments are final. Attach a copy of the RAR including spreadsheets that detail the federal adjustments by company name. Payment Guidelines and Information Taxpayer Access Point (TAP), our secure resource at https://tap.state.nm.us, lets you e-file and e-pay the taxes. NOTE: For more information about TAP, see pages 2 and 3 of these instructions. ●● A single member limited liability company that is treated as a disregarded entity for federal income tax purposes Amended Returns 6. If the New Mexico amended return reports changes as the result of filing an amended federal return, attach copies of the applicable federal forms and schedules. In all other cases, attach an explanation of the changes. 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. NOTE: For details about completing S-Corp-PV, S-Corp-ES, and S-Corp-EXT vouchers, see Completing Vouchers And Payments near the end of these instructions. Paying Taxes You can use the following to make the 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. - 6 - www.tax.newmexico.gov General Instructions Corporations Required to Make Estimated Payments A corporation is required to pay estimated S-Corp income tax payments if all the following are true: ●● The corporation is subject to corporate income tax. ●● Its 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. NOTE: For more information about estimated tax calculations, in the Completing Vouchers and Payments section near the end of these instructions, go to S-Corp-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. IMPORTANT: An extension of time to file the S-Corp return 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 S-Corp return, 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. 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 rate for the last two years was 4%. The annual and daily interest rates for each quarter are posted on our website at www.tax.newmexico.gov. Under ABOUT US, click the magnifying glass and search for 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. S-Corp 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. 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 S-Corp return due to missing information ●● 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 an S-Corp return, 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. - 7 - www.tax.newmexico.gov General Instructions NOTE: For a list of required forms, see Assembling The Return earlier in these instructions. agreements, exchanges information with the IRS, other state agencies, and taxing authorities in other states. Collection of Debts from a Refund If the entity 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. Occasionally, computation 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 the entity owes amounts due under the Unemployment Compensation Law or the Workers' Compensation Administration Act, the law 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 S-Corp 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.aspx. Then click Publications, FYIs, and 400 Series-Tax Administration. - 8 - www.tax.newmexico.gov Line Instructions to Complete the S-CORP Returns and Schedules S-Corp purposes. If you do not know the NAICS code, see the instructions for federal returns at https://www.irs.gov. Line 1a through Line 6c and Line A through F Type or print the entity's information at the top of the S-Corp return as described here. Then complete all information in lines A through F, and mark all relevant boxes. Line 6a and 6b. Fiscal year or short-year filers enter tax year start and end dates (the dates the entities' books open and close for the tax year) from their federal returns. Line 1a. Entity's registered name. Line 6c. If the due date was extended, enter the date and include a copy of the extension with the S-Corp return. Line 2a. Number and street name of the entity's mailing address. Line A. The state where the entity was organized. Line 3a. City, state, and postal or ZIP code of the entity's mailing address. Verify that the entire mailing address is correct. Line B. Date the entity was organized. Line 3b. If the entity'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. Line D. If the New Mexico business was terminated in New Mexico, enter that date. Line C. Date business began in New Mexico. Box 4a. If this is an original return, mark box 4a. Box 4b. If this is an amended return, mark box 4b. NOTE: For more information about amended returns, see Amended Returns in the General Instructions section. Line 5a. The entity'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. New Mexico 11-digit CRS identification number. The entity uses this number to report and pay state and local option gross receipts tax and New Mexico withholding and compensating tax under the Combined Reporting System (CRS). If the entity has no gross receipts, withholding, or compensating tax reporting requirements, leave blank. Line E. Enter the name of the entity's registered agent and the agent's address, including street address, city, state, and ZIP code. Line F box. Mark this box if the New Mexico activities were immune from New Mexico corporate income tax under P.L. 86-272 (the entity had no nexus) for the 2017 tax year. You must also complete and include S-Corp-A with the S-Corp return. Line and Other Entries on S-Corp Follow these instructions to complete lines 1 through 22 on the S-Corp return, and the signature and preparer information at the bottom of the page. Lines 1 through 4 are for S corporations with income subject to federal tax. S corporations use these lines to calculate New Mexico tax. NOTE: If not applicable, a CRS number is not required. Line 1. Income taxable to corporation. From S-Corp-C, line 4, column 1, enter the total allocated and apportioned income taxed to the corporation. Line 5c. The entity'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 Line 2. Tax on amount on line 1. This entry = line 9 amount x tax rate (see tax rate table). Line 2. Corporate Income Tax Rates For tax years beginning 1/1/2017, but prior to 1/1/2018. Net Taxable Income Tax Not over $500,000............................................ 4.8% of net taxable income Over $500,000................................................. $24,000 plus 6.2% of the excess over $500,000 S-Corp - 9 - www.tax.newmexico.gov S-Corp Line 3. New Mexico percentage. If on S-Corp-C, line 5 you show the percentage of New Mexico allocated and apportioned income, enter the percentage. Otherwise, enter 100%. ●● 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 Line 4. New Mexico income tax. This entry = line 2 x the percentage on line 3. 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) 827-4511 in Santa Fe or toll free (800) 477-3632, email [email protected], or visit http://www.sos.state.nm.us. Click Corporations and then select items under Domestic or Foreign. Line 5. Total tax credits applied against the income tax liability on line 4. If you are claiming any tax credits to apply to the income tax liability, complete Schedule S-Corp-CR. Then enter the amount on S-Corp-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 S-Corp-CR may not exceed the income tax claimed on S-Corp, line 4. ●● To calculate the amount an entity 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 S-Corp return 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 S-Corp-CR Instructions available at www.tax.newmexico.gov/forms-publications.aspx. Click Income Taxes, Subchapter S Corporate Income Tax Return Forms, and then S-Corp-CR Instructions. NOTE: For more information about business-related credits, see FYI-106, Claiming Tax Credits for CRS Taxes and Business-Related Income. You can find FYI-106 at www.tax.newmexico.gov/forms-publications.aspx. Click Publications followed by FYIs, and then click 100 Series-General Information. Line 6. New Mexico income tax less tax credits. This entry = line 4 income tax - line 5 credits. Enter zero or a larger amount. Line 7. 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 an S 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 Line 8. Total income and franchise tax. This entry = line 7 franchise tax amount + line 6 net income tax amount. Line 9. Amended Returns Only. If this is an amended return, enter the total amount of all 2017 refunds received and overpayments applied to 2018. Line 10. Subtotal. This entry = line 8 total income and franchise tax amount + line 9 refunds and overpayments. Line 11. Total Payments. Mark one or more of these boxes to show the source of the entity's total payments: ●● Estimated ●● Extension ●● Applied from prior year Enter the total amount of all 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. IMPORTANT: If any amounts on line 11 were paid using an FEIN other than the one entered at the top of the S-Corp return, a schedule is required with the name and FEIN under which the payment was made. Line 12. New Mexico income tax withheld from oil and gas proceeds. From annual withholding statements 1099-MISC 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 S-Corp return. Requirements ●● Only report New Mexico tax withheld on oil and gas proceeds received by the entity. ●● The only withholding statements the Department accepts are 1099-MISCs and RPD-41285s issued to the entity. S-Corp - 10 - www.tax.newmexico.gov S-Corp Line 13. New Mexico income tax withheld from pass-through entities. From annual withholding statements 1099-MISC 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 of each statement with the S-Corp return. Requirements ●● Only report New Mexico tax withheld on the net income received from a PTE. ●● The only withholding statements the Department accepts are 1099-MISCs and RPD-41359s issued to the entity. Line 14. Amount from lines 12 and 13 passed to owners. If the entity passed to owners the income tax withheld from oil and gas proceeds or PTEs, enter the amount withheld and reported on RPD-41367. Line 15. Total payments and tax withheld. This entry = [line 11 total payments + (line 12 + line 13 taxes withheld)] - line 14 amount withheld. Line 16. Tax due. If line 10 is greater than line 15, this entry = line 10 subtotal - line 15 total payments and tax withheld. Line 17. Penalty. The minimum penalty is $5 and the maximum penalty is 20% of the entity's tax due. If any of the following is true, this entry = line 16 tax due + penalty: ●● 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 16 x 2% x number of months or partial months past due date or extended due date If you want the Department to calculate the penalty for you and send a bill, leave this line blank. Line 18. Interest. If either of the following is true, this entry = line 16 tax due + interest: ●● You did not pay the tax due on line 16 by the original due date. ●● You received an extension of time to file. Formula to Calculate Interest Interest = tax due from line 23 x daily interest rate for the quarter x number of days late If you want the Department to calculate interest for you and send you a bill, leave this line blank. Line 19. Total amount due. This entry = line 16 tax due + line 17 + line 18. Line 20. Overpayment. If the amount in line 15 is greater than the amount line 10, this entry (the refund amount) = line 15 total payments and tax withheld - line 10 subtotal. Line 20a. If you want to apply some or all of an overpayment from line 20 to the 2018 liability, enter the amount to apply. Otherwise, enter zero. Line 20b. If you want to receive a refund of all or part of an overpayment, this entry = line 20 overpayment - line 20a amount to apply to the 2018 liability. Line 21. Total portion of tax credits to refund. Enter from Schedule S-Corp-CR, line B, the portion of approved tax credits the Department may refund to you. NOTE: S-Corp-CR, line A shows the amount of these credits to apply to the tax due on the S-Corp return. This is the same amount as on S-Corp, line 5. About the Film Production Tax Credit The amount of film production tax credit you may claim against the tax due on this S-Corp return 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 22. Total refund of overpaid tax and refundable credit due to you. This entry = line 20b amount of overpayment to refund + line 21 tax credit to refund. Refund Express If you want a refund of overpaid tax and any refundable credit (S-Corp, line 22) 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. S-Corp - 11 - www.tax.newmexico.gov S-Corp S CORPORATION'S NAME 123 Main Street Anyplace, NM 87000 1540 15-000000000 SA MP LE 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 ●● 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 S-Corp return. Why Use Refund Express ●● Prevent any mailed check delays. Refund Express does not guarantee that you receive a refund sooner, but the 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. 1540 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. 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. ●● 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. 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. Taxpayer's Signature An officer of the corporation must sign and date the S-Corp return. Enter the following information: ●● Title [of officer] ●● Contact phone number ●● Taxpayer's email address 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 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: ●● Printed preparer's name ●● New Mexico CRS identification number, if the preparer has one S-Corp - 12 - www.tax.newmexico.gov S-Corp and S-Corp-1 ●● 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. S-Corp-1 Complete all information in lines 1 through 12 to show the calculation of net income taxable to owners. Line 1. Ordinary income (loss) from federal Form 1120S, Schedule K. Enter the ordinary income or loss as recognized from federal tax return Form 1120S, Schedule K. Line 2. Other income (loss) from federal Form 1120S, Schedule K. Except for guaranteed payments to partners and health insurance payments made on behalf of the partners or partners' dependents, enter the sum of all other income or losses recognized on federal tax return Form 1120S, Schedule K. Line 3. Interest income from municipal bonds, excluding New Mexico bonds. Enter interest income from non-New Mexico state and local bonds not subject to federal income tax under Internal Revenue Code (IRC) Section 103. Line 4. Subtotal of lines 1 through 3. This entry = line 1 ordinary income (loss) + line 2 other income (loss) + line 3 interest income from municipal bonds except New Mexico bonds. Line 5. Interest from U.S. government obligations or federally-taxed New Mexico bonds. An S corporation may deduct interest or dividend income from U.S. government obligations from the corporation's taxable income only if, and to the extent that, it was included in taxable income on line 1. This entry, a net amount = S-Corp line 1 - expenses related to income from U.S. obligations. IMPORTANT: Income from Fannie Mae, Ginnie Mae, Freddie Mac, and other U.S. guarantee entities is not deductible. Income from repurchasing agreements (repos) of U.S. obligations is not deductible. Interest on notes issued by Federal Home Loan Bank obligations are deductible, but not dividends issues by the Federal Home Loan Bank. That portion of income paid by mutual funds, unit investment trusts, and simple trusts derived from investments in U.S. obligations is deductible. Interest income for bonds issued by the State of New Mexico or its political subdivisions is also deductible on this line to the extent that income was included in federal taxable income. Line 6. Allowable deductions from Schedule K. Except for health insurance payments made on behalf of the partners or partners' dependents, enter the allowable deductions recognized on federal Form 1120S, Schedule K. Not allowed to claim at the entity level on the S-Corp return are net operating loss carryover nor oil and gas depletion deductions. Line 7. Allocated income. If applicable, enter the total allocated income from S-Corp-B, column 1, line 8. Line 8. Apportionable income. This entry = line 4 subtotal - (line 5 interest + line 6 allowable deductions + line 7 allocated income). Line 9. Average New Mexico percentage. Enter the average New Mexico percentage from S-Corp-A, line 5. Line 10. New Mexico apportionable income. This entry = line 8 apportionable income x line 9 average New Mexico percentage. Line 11. New Mexico allocated income. If applicable, enter New Mexico allocated income from S-Corp-B, column 2, line 9. Line 12. NEW MEXICO taxable income. This entry = line 10 apportionable income + line 11 allocated income. NOTE: If the S-Corp is required to file RPD-41367, report this amount RPD-41367, line 1. S-Corp - 13 - www.tax.newmexico.gov S-Corp-A: New Mexico Apportionment Factors When to Use Schedule S-Corp-A If the entity's income is derived from both inside and outside New Mexico, use S-Corp-A to apportion the entity's income from the entity's regular trade or business activities. All reporting entities, except those with 100% New Mexico activity, must complete Schedule S-Corp-A in its entirety, including reporting entities with: ●● Activities in New Mexico that are immune from corporate income tax under P.L. 86-272 ●● No business activity in New Mexico during the tax year 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 entity'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 entity's overall business operations. You are required to include on S-Corp-A the following sources of apportionable income: ●● Dividend income from the investment of working capital or dividend income from an investment that is functionally connected to the entity's trade or business ●● Interest income from the investment of working capital, interest income from capital investments used in the overall business operations, or interest income from an investment that is functionally connected to the entity's trade or business ●● Royalty income and fees from patents, copyrights, franchises, trademarks, and licenses developed in the regular course of the entity's trade or business, or royalty income and fees from a product or mineral interest used in the regular course of the entity's trade or business ●● Rental or subrental income from property purchased, leased, or used in the regular course of the entity's trade or business ●● Gains or losses from the sale of assets used in the regular course of the entity's trade or business, or assets sold that had been treated as business assets in prior years ●● If held within the regular course of the entity's trade or business, income from a partnership or non-corporate entity Construction contractors, railroads, airlines, trucking companies, financial institutions, television and radio broadcasters, and publishers are subject to special apportionment rules. Taxpayers electing the combined or consolidated methods of reporting must apply these apportionment rules to each qualifying entity included on the return. Consistency in Reporting Consistency in a entity's reporting is required and includes: ●● Classification of income as allocable or apportionable ●● Valuation of property and inclusion in the property factor ●● Treatment of compensation for the payroll factor ●● Exclusion or inclusion of receipts in the sales factor for returns filed in all states An entity must disclose any change or inconsistency from prior year returns in a statement attached to the return. The statement identifies the amounts and reasons for the changes or inconsistencies. Petition Procedure Open to Taxpayers If the procedures for allocation and apportionment required for S-Corp-A and S-Corp-B do not fairly represent the extent of the taxpayer’s business activity in New Mexico, the taxpayer may petition to use, or the Secretary of Taxation and Revenue may require taxpayers to use, another method to apportion or allocate all or part of the taxpayer’s income. Completing Schedule S-Corp-A When you complete S-Corp-A, follow these basic requirements for the property, payroll, and sales factor sections: ●● Percentages. Calculate each percentage to four decimal places. For example, 22.5431%. ●● Lines 1, 2, and 3. If you complete column 2, you must complete column 1, Total Everywhere. IMPORTANT: If column 1 is blank, the Department apportions 100% of the income to New Mexico. PROPERTY FACTOR Lines 1a, 1b, 1c, and 1d. For each line, as applicable, enter amounts in the columns for inventory, real property, personal property, and rented property. Line 1e. In column 1, enter the total of the column amounts for lines 1a, 1b, 1c, and 1d. In column 2, enter the total of the column amounts for lines 1a, 1b, 1c, and 1d. S-Corp - 14 - www.tax.newmexico.gov S-Corp-A: New Mexico Apportionment Factors Line 1. Property factor. In columns 1 and 2, enter a positive number or, if the result is a negative number, enter zero. Calculate the percentage for this factor as follows: amount in column 2 amount in column 1 x 100 = property factor percentage In other words: 1. Divide the average value of the real and tangible personal property owned or rented and used in New Mexico during the tax year to produce apportionable income by the average value of all real and tangible personal property owned or rented everywhere and used during the tax year to produce apportionable income. 2. To find the property factor percentage, multiply the result by 100. Valuation of Property Property shall be valued according to the following rules: ●● Inventory shall be valued according to the valuation method used for federal income tax purposes. ●● Value property owned during the tax year shall be valued at its original cost before the allowance for depreciation amount at the time of acquisition by the taxpayer and adjusted by the taxpayer and adjusted by subsequent capital additions, improvements, and partial dispositions. ●● Value property rented from others shall be valued at eight times the net annual rental rate. The net annual rate is the annual rent paid less any annual rent received from subrental of the same property. If property owned by others is used by the corporation at no charge or rented by the corporation at a nominal rate, the net annual rental rate is determined on the basis of a reasonable market rental rate for the property. Determine the average value of property by doing the following: 1. Add the total value of property held by the taxpayer at the beginning of the tax period to the total value of property held at the end of the tax period. 2. Divide the sum by two. NOTE: If the Department determines a monthly average is necessary to correctly reflect the average value of the taxpayer’s property, the Department may require the taxpayer to calculate an average value on a monthly basis. PAYROLL FACTOR Line 2a. In columns 1 and 2, enter the total wages, salaries, commissions, and other compensation of employees related to apportionable income. Line 2. Payroll factor. In columns 1 and 2, enter a positive number or, if the result is a negative number, enter zero. Calculate the percentage for this factor as follows: amount in column 2 amount in column 1 x 100 = property factor percentage In other words: 1. Divide the total amount paid as compensation to employees in New Mexico during the tax year by the total amount paid as compensation to employees everywhere during the tax year. 2. To find the payroll factor percentage, multiply the result by 100. Compensation means wages, salaries, commissions, and any other form of remuneration paid to employees for personal services. Only amounts paid directly to employees are includable in the payroll factor. Employees include leased employees where the taxpayer is considered an employer for payroll tax purposes. Employees are not independent contractors to whom the taxpayer issues federal Form 1099. Include in the payroll factor only compensation attributable to business operations subject to apportionment. Exclude from the payroll factor compensation of an employee whose primary activities relate to the production of non-business income; however, you may include this compensation as a related expense of the allocated activity. SALES FACTOR Line 3a. In columns 1 and 2, enter the total amounts of gross receipts. Line 3. Sales factor. If you have a federal taxable income or loss, in column 1 enter only a positive number. Otherwise, in columns 1 and 2 enter a positive number or, if the result is a negative number, enter zero.Calculate the percentage for this factor as follows: amount in column 2 amount in column 1 x 100 = property factor percentage In other words: 1. Divide the total gross receipts attributable to New Mexico during the tax year, excluding returns, S-Corp - 15 - www.tax.newmexico.gov S-Corp-A: New Mexico Apportionment Factors allowances, and allocated income, by the total gross receipts attributable to New Mexico during the tax year, excluding returns, allowances, and allocated income. 2. To find the sales factor percentage, multiply the result by 100. Gross receipts means all income from transactions and activities in the regular course of business including income from licensing intangible personal property. What are New Mexico Sales? Sales of tangible personal property are New Mexico sales if either of the following is true. The property is: ●● Delivered or shipped to a purchaser other than the U.S. government within New Mexico regardless of the FOB (free on board) point or other conditions of the sale ●● Shipped from an office, store, warehouse, factory, or other place of storage in New Mexico and either of the following is true: ♦ The purchaser is the U.S. government. IMPORTANT: You are required to provide the average percentage on line 5 to all owners of the entity. Also enter this percentage on S-Corp-1, line 9. The three-factor formula is for all taxpayers except the following exclusions, described in detail later in this section: ●● Exclusion 1. Qualifying manufacturers who elect to use the apportionment formula with a single-weighted sales factor. ●● Exclusion 2. A taxpayer whose principal business activity in New Mexico is a headquarters operation and who elects to use the single-weighted sales factor formula. ●● Exclusion 3. Taxpayers allowed or required to eliminate one or more factors because the threefactor formula does not fairly represent the extent of their business activity in New Mexico. Taxpayers who elect to use the manufacturers apportionment formula or who are required to use one of the other exclusions, must follow the instructions described next. ♦ The taxpayer is not taxable in the state of the For Help Electing an Exclusion Method purchaser. For help electing any exclusion method or if you have any questions, call (505) 827-0825 or toll free (866) 809-2335, Sales other than sales of tangible personal property are or email [email protected]. New Mexico sales if any of the following are true: ●● The income-producing activity was performed in New Exclusion 1 Mexico. Electing Manufacturers Apportionment Formula ●● The income-producing activity was performed Taxpayers whose principal activity is manufacturing both inside and outside New Mexico, but a greater may elect to use the special apportionment formula proportion was performed within New Mexico than shown in this section. For tax years beginning on or in any other single state. The proportion shall be after January 1, 2014, the election allows taxpayers to determined by the cost of performance in each state. apportion their business income to New Mexico using an ●● The gross receipts were from the rental, lease, alternative method that, over a five-year period, phases in licensing, or any other use of either real or tangible a single-weighted sales factor. personal property during the time the property was in New Mexico. If elected, the taxpayer apportions taxable income ●● The gross receipts were from the performance of by multiplying it by a fraction. The numerator is the personal services in New Mexico. single-weighted sales factor plus the property and payroll factors of the business in New Mexico during the tax year. Line 4. Sum of factor percentages. Add lines 1, 2, and The denominator is the total number of factors (8 + 1 + 1). 3 to find the sum of factor percentages and then enter the percentage sum. The election for this special factor method applies to the tax year in which the manufacturer notifies the Department Line 4a. Count of factors. Count all the factors you used of their election, until the manufacturer notifies the and enter the total count here. Department, in writing, that the election is terminated. The manufacturer, however, shall not terminate the election until the method of apportioning business income has Line 5. Average New Mexico Percentage. New Mexico been used by the taxpayer for at least three consecutive uses an evenly weighted three-factor formula. Taxpayers tax years, covering at least 36 calendar months. who use the three-factor formula complete lines 4, 4a, and 5 on Schedule S-Corp-A. S-Corp - 16 - www.tax.newmexico.gov S-Corp-A: New Mexico Apportionment Factors Single-Weighted Sales Factor For Electing Manufacturers For Tax Years Beginning January 1, 2017 through December 31, 2017 Apportionment Formula (8 x sales factor) + property factor + payroll factor 10 This election applies to the separately filed return of the taxpayer or to the combined or consolidated return the taxpayer elected to be included in. The statutory authority for this elective method is Section 7-4-10B NMSA 1978. Manufacturing means combining or processing components or materials to increase their value for sales in the ordinary course of business, but does not include any of the following: (a) construction (b) farming (c) power generation, except for electricity generation at a facility other than one for which both location approval and a certificate of convenience and necessity are required prior to commencing construction or operation of the facility, pursuant to the Public Utility Act (Articles 1 through 6 and 8 through 13 of Chapter 62 NMSA1978) (d) processing natural resources, including hydrocarbons Electing the Manufacturers Method To elect to use the manufacturers apportionment formula, do the following: 1. No later than the filing date of the first return to which the election applies, notify the Department in writing. 2. Submit the notification to the Taxation and Revenue Department, CIT Unit, P.O. Box 630, Santa Fe, NM 87504-0630. 3. On Schedule S-Corp-A, complete line 5B. NOTE: To terminate the election, submit that notification to the address in step 2. Exclusion 2 Electing Headquarters Operation Apportionment Formula Taxpayers whose principal business activity in New Mexico is a headquarters operation may elect to use a single-weighted sales factor apportionment formula. For tax years beginning on or after January 1, 2015, the election allows the taxpayer to apportion the business income to New Mexico using a single-weighted sales factor. If elected, the taxpayer apportions taxable income by multiplying it by a fraction. The numerator is the total sales of the business in New Mexico during the tax year. The denominator is the total sales of the taxpayer from any location within or outside of the state during the tax year. The election for the special factor method applies to the tax year in which the business notifies the Department of their election, until the business notifies the Department, in writing, that the election is terminated. The taxpayer, however, shall not terminate the election until the method of apportioning business income has been used by the taxpayer for at least three consecutive tax years, covering at least 36 calendar months. The statutory authority for this elective method is Section 7-4-10C NMSA 1978. Headquarters operation means (a) and all its items are true or (b) and all its items are true: (a) the center of operations of a business: 1) where corporate staff employees are physically employed 2) where centralized functions are performed, including administrative, planning, managerial, human resources, purchasing, information technology, and accounting, but not including a call center 3) the function and purpose of which is to manage and direct most aspects and regional and regional headquarters, if the national headquarters is subordinate only to the ownership of the business or its representatives and the regional headquarters is subordinate to the national headquarters (b) the center of operations of a business: 1) the function and purpose of which is to manage and direct most aspects of one or more centralized functions 2) from which final authority over one or more centralized functions is issued S-Corp - 17 - www.tax.newmexico.gov S-Corp-A: New Mexico Apportionment Factors Electing the Headquarters Operation Method To elect to use the headquarters operation apportionment formula, do the following: 1. No later than the filing date of the first return to which the election applies, not
Extracted from PDF file 2019-new-mexico-form-s-corp-ins.pdf, last modified April 2018

More about the New Mexico Form S-Corp INS (Obsolete) Corporate Income Tax

Obsolete

We last updated the Instructions for Form S-CORP Sub-Chapter S Corporate Income and Franchise Tax Return in April 2021, and the latest form we have available is for tax year 2019. This means that we don't yet have the updated form for the current tax year. Please check this page regularly, as we will post the updated form as soon as it is released by the New Mexico Taxation and Revenue Department. You can print other New Mexico tax forms here.

Related New Mexico Corporate Income Tax Forms:

TaxFormFinder has an additional 80 New Mexico income tax forms that you may need, plus all federal income tax forms. These related forms may also be needed with the New Mexico Form S-Corp INS (Obsolete).

Form Code Form Name
Form S-Corp-1 (Obsolete) Sub-Chapter S Corporate Income and Franchise Tax Return
Form S-Corp-EXT S-Corp Extension Payment Voucher
Form S-Corp-ES Sub-Chapter S Corporate Income and Franchise Estimated Tax Payment Voucher
Form S-Corp-PV S Corp Tax Payment Voucher
Form S-Corp-CR S-Corp Tax Credit Schedule

Download all NM tax forms View all 81 New Mexico Income Tax Forms


Form Sources:

New Mexico usually releases forms for the current tax year between January and April. We last updated New Mexico Form S-Corp INS (Obsolete) from the Taxation and Revenue Department in April 2021.

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About the Corporate Income Tax

The IRS and most states require corporations to file an income tax return, with the exact filing requirements depending on the type of company.

Sole proprietorships or disregarded entities like LLCs are filed on Schedule C (or the state equivalent) of the owner's personal income tax return, flow-through entities like S Corporations or Partnerships are generally required to file an informational return equivilent to the IRS Form 1120S or Form 1065, and full corporations must file the equivalent of federal Form 1120 (and, unlike flow-through corporations, are often subject to a corporate tax liability).

Additional forms are available for a wide variety of specific entities and transactions including fiduciaries, nonprofits, and companies involved in other specific types of business.

Historical Past-Year Versions of New Mexico Form S-Corp INS (Obsolete)

We have a total of four past-year versions of Form S-Corp INS (Obsolete) in the TaxFormFinder archives, including for the previous tax year. Download past year versions of this tax form as PDFs here:



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