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New Mexico Free Printable  for 2024 New Mexico Compensating Tax Return (Instructions)

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Compensating Tax Return (Instructions)
Form TRD-41412 (Instructions)

Rev. 07/01/2023 NEW MEXICO TAXATION AND REVENUE DEPARTMENT COMPENSATING TAX RETURN CONTACTING THE DEPARTMENT Local Taxation and Revenue Offices If you need to visit the Department in person you can visit one of our tax district offices at one of the following locations: Letter ID in the top right hand corner to provide to the Department’s agent. Mailing Address If you want to write us about your return, please address your letter to: Albuquerque 10500 Copper Pointe Avenue NE Albuquerque, NM 87123 Compensating Tax Correspondence Taxation and Revenue Department P.O. BOX 25128 Santa Fe, NM 87504-5128 Farmington 3501 E. Main Street, Suite N. Farmington, NM 87499-0479 Las Cruces 2540 S. El Paseo, Bldg.#2 Las Cruces, NM 88001-0607 If you are writing in response to a letter, please include the Letter ID in your response. Roswell 400 Pennsylvania Avenue, Suite 200 Roswell, NM 88201-1557 Email Contacts The Taxation and Revenue Department provides several email contacts for you. Santa Fe 1200 South St. Francis Drive Santa Fe, NM 87502-5374 If you have questions about your in-progress Compensating Tax return, the instructions, a return you already submitted, or your refund, ema1il: [email protected]. Phone Contact You can contact the Department’s call center and they can provide full service and general information about the Department’s taxes, Taxpayer Access Point (TAP), programs, classes, and forms. They can also provide assistance with information specific to your account including your filing situation, payment plans, and delinquent account information. Call Center (866) 285-2996. If you have questions about New Mexico tax law and need additional clarification on statutes and regulations, email: [email protected]. Forms and Instructions You can find forms and instructions on our website at www. tax.newmexico.gov. At the top of the page, click FORMS & PUBLICATIONS. You may also locate your account information through the Taxpayer Access Point (TAP), https://tap.state.nm.us. Online Services The TAP website at https://tap.state.nm.us is a secure online resource that lets you electronically file your return for free: • See information about your return, payment, and refund • Pay existing tax liabilities online • Check the status of a refund • Change your contact information • Register a business What You Need When you call or visit us on the web, make sure to have your New Mexico Business Tax Identification Number (NMBTIN)(previously known as your CRS number), a copy of your tax return, or letter in question. Note: If you are inquiring about a letter please locate the GENERAL INSTRUCTIONS GENERAL INFORMATION This document provides instructions for the New Mexico Form TRD-41412, Compensating Tax Return. Each Form TRD41412 is due on or before the 25th of the month following the end of the tax period being reported. Certain taxpayers are required to file the Form TRD-41412 electronically. For more information on whether electronic filing is required for your business, please see FYI-108, Electronic Filing Mandate TRD-41412 which is available through your local district office or online at https://www.tax.newmexico.gov/forms-publications/. Please note: When completing your form, all pertinent columns must be clearly filled out and completed or your Form TRD-41412 may be rejected and returned for correction and will need to be resubmitted. 1 www.tax.newmexico.gov Rev. 07/01/2023 WHAT TO KNOW AND DO BEFORE YOU BEGIN Who Must File Compensating tax is an excise tax imposed on persons using property, services, a license or a franchise in New Mexico as described in Section 7-9-7 NMSA. location code. The Department releases the Gross Receipts and Compensating Tax Rate Schedule semiannually. The Tax Rate Schedule has the listing of counties, municipalities, location codes for each, and the tax rate. The location codes are used to determine which tax rate should be used when filing your return. The gross receipts and compensating tax rates can change on January 1 and July 1 of each year, so it is important to check the tax rate schedule for new rates You can locate the Gross Receipts and Compensating Tax Rate Schedule online at https://www.tax.newmexico.gov/governments/gross-receipts-location-code-and-tax-rate-map/. What is Compensating Tax Compensating Tax is imposed based on the value of the property, service, license, or franchise being used. For property, this is the adjusted basis of the property for federal income tax purposes determined at the time of acquisition or instroduction into New Mexico, or at the time conversion to use, whichever is later. For services, the value is the value of the services at the time the services were performed, or the product of the service was acquired. The value of a license or franchise is the value of the license or franchise in its use in this state. Location Code and Tax Rate Compensating tax is required to be reported by municipality, county, and location code as described in Section 7-1-14 NMSA as follows: Compensating Tax must be reported to specific location codes. See Gross Receipts and Compensating Tax Rate Table for more information. G. Except as provided in Subsection H of this section, uses of property or services subject to the compensating tax shall be reported at the reporting location at which gross receipts would have been required to be reported had the transaction been subject to the gross receipts tax. H. If a person subject to the compensating tax can demonstrate that the first use upon which compensating tax is imposed occurred at a time and place different from the time and place of the purchase, then compensating tax shall be reported at the business location of the first use. • Compensating tax is designed to protect New Mexico businesses from unfair competition from out-of-state businesses not subject to gross receipts tax. • "Use" means use, consumption or storage other than storage for subsequent sale in the ordinary course of business or storage for use solely outside New Mexico (7-9-3[N]). See Regulation 3.2.1.30 NMAC for further clarification of the definition of “use”. More detail on the reporting location for compensating tax may be found in the publication FYI-230, Compensating Tax, and, for determining the reporting location for gross receipts tax, in the FYI-200, Gross Receipts Reporting Location and the Appropriate Tax Rate available online at https://www.tax.newmexico.gov/forms-publications/ or through your local district office. For more detail, see FYI-230, Compensation Tax and FYI-105, Gross Receipts & Compensating Taxes: An Overview available at https://www.tax.newmexico.gov/forms-publications/ or through your local district office. Gross Receipts and Compensating Tax Rate Table Compensating tax is reported using the rates from the Gross Receipts and Compensating Tax Rate Schedule based on municipality/county locations and reported/collected based on FILING METHODS Different Filing Methods You can file your Compensating Tax Return (TRD-41412) on paper or electronically. Both options are described here to help you choose the most convenient method. The Department asks that the Compensating Tax return be filed online using the Taxpayer Access Point (TAP) whenever possible. TAP is a free online filing option that can be located by going to our website at https://tap.state.nm.us. you are required to file: Important: After completing your paper or electronic return, make a copy for your records and keep it in a safe place. Important: Even if your combined tax liability requires that you file electronically we encourage all taxpayers to read the information provided in these instructions. • Compensating Tax • Gross Receipts Tax • Governmental Gross Receipts Tax • Interstate Telecommunications Tax • Leased Vehicle Gross Receipts Tax and Surcharge • Non-wage Withholding Tax • Wage Withholding Tax Electronic Filing Mandate If your average monthly tax liability for the below business tax programs is equal to or exceeds $1,000.00 you must file electronically on or before the due date for all tax programs TRD-41412 For more information about filing electronically see the next section Filing Methods. 2 www.tax.newmexico.gov Rev. 07/01/2023 Getting Ready to File Follow these steps before you start filling out your TRD-41412, Compensating Tax Return: cause processing issues. If you need assistance filing your return on TAP, you can email, [email protected] or you can call the Call Center at: (866) 285-2996. 1. Collect all forms and schedules you are required to file, publications you need to reference, and all your tax records. For help with TAP, email: [email protected]. For a description of different forms and schedules, see Required Forms and Attachments starting on page 4 of these instructions. To find out where to get the forms and schedules you need, see Contacting the Department on page 1. Where To Get Paper Tax Forms Compensating Tax forms and schedules can be filled out by hand and mailed to the Department. You can get these tax forms from any district office, request they be mailed to you or by downloading them from the Department website. 2. Read the next section, Valid Identification Number Required, to learn about New Mexico Business Tax Identification Number (NMBTIN), Federal Employer Identification Number (FEIN), Social Security Numbers (SSN) and Individual Taxpayer Identification Numbers (ITIN). In Person Ask for forms at the Department’s local district offices. Use CONTACTING THE DEPARTMENT information listed on page 1 of these instructions. Benefits of Filing Electronically The Department encourages you to file electronically whenever possible. Electronic filing is fast, safe, secure, and it provides these benefits: • Filing is free on the Department website. • File return, pay, and request a refund. • View all letters sent by the Department • View your account and see if there are any missing returns or payments. • You can speak with an agent while viewing your account and they can walk you through using TAP or any notifications you may be seeing on your account. • You can also provide third-party access to your accountant to be able to complete returns, file, and pay your tax due. • The state saves tax dollars in processing costs and results in faster processing times for returns and payments submitted to the Department. Downloading Forms and Instructions To download tax forms, follow these steps: 1. Go to www.tax.newmexico.gov. 2. At the top of the webpage, click FORMS & PUBLICATIONS. 3. Locate the folders toward the bottom of the page, click the Business Taxes folder. 4. Click on the Compensating Tax folder. Check the Print Quality Make sure the printer can clearly print a logo. If it can it will print a quality tax form. It is important to use an original. Never submit a return with a form that has been photocopied or photo shopped as it will not be accepted by our processing machines. Valid Identification Number Required Enter your business name and New Mexico Business Tax Identification Number (NMBTIN) on all forms, schedules, and correspondence you send to the Department. The Department cannot accept a return without a valid identification number. Using the Department Website, Taxpayer Access Point (TAP) To file your return on the Department website, follow these steps: 1. Logon or create a TAP account at https://tap.state.nm.us. 2. Locate Compensating Tax (CMP) 3. Within the Return Panel Select File Now 4. After you complete all your entries, check the Signature box, then click Submit to file. 5. Select OK in the Confirmation box to continue. 6. Select Print Confirmation Page showing your confirmation number as proof and verification that you filed online. 7. Select Print Return to print a copy of your return for your records. 8. Click Print to print a copy of your return for your records. Important Guidelines Review the following items before making your entries: • Complete all required information on your form. Failure to do this delays processing your return and may cause errors when the Taxation and Revenue Department performs calculations during processing. • Leave blank all spaces and boxes that do not apply to you. Do not draw lines through or across areas you leave blank. • Write numbers clearly and legibly to reduce processing errors and increase efficiently. Use the boxes on the form as a guide for your handwritten entries. • Do not use dollar signs ($) or any punctuation marks or symbols other than a comma (,). Important: Do not mail the confirmation page or the return you filed online to the Department. Mailing in the return can TRD-41412 3 www.tax.newmexico.gov Rev. 07/01/2023 REQUIRED FORMS AND ATTACHMENTS TRD-41412 Followed by Forms and Attachments Submit in This Order • TRD-41412, Compensating Tax Return • Schedule CR, if required • Supplemental Schedule CR, if required • CMP-PV, if required • RPD-41071, Application for Refund, if required • Other required schedules or attachments. TRD-41412 Required Every person required to file a New Mexico Compensating Tax return must complete and file a TRD-41412, New Mexico Compensating Tax Return. • Payment (check or money order) • CMP-PV Payment Voucher When paying by check or money order, make sure to indicate the correct filing period of the return to which you want the payment to apply. The Department supports the fast and secure filing of electronic payments. To print copies of vouchers, go to http://www.tax.newmexico. gov. At the top of the page, click FORMS & PUBLICATIONS then select the following items in this order: • Business Taxes, • Compensating Tax and then click Payment Voucher Schedule CR Use the Schedule CR, Compensating Tax Business-Related Tax Credit Schedule CR. Attachments for each credit are required. The attachments are specified next to each credit type on this form. CMP-PV, Compensating Tax Payment Voucher If your return shows a balance due and you choose to pay by mail or delivery to one of our local offices, you must complete the CMP-PV payment voucher and include it with your check or money order. Also include CMP-PV when submitting your payment with your paper return. Important: On all checks and money orders, write your New Mexico Business Tax Identification Number (NMBTIN) (previously known as your CRS number), CMP-PV, and the filing period. If you will be claiming a refundable credit you will also need to submit RPD-41071, Application for Refund. If you believe you may qualify for business tax credits please see the FYI-106, Claiming Business-Related Tax Credits for Individuals and Business Amended Return Any change to New Mexico compensating, exemptions, deductions or credits require an amended TRD-41412. When filing an amended return mark the amended box on your return clearly. You will file this return as if it is an original return and must submit all forms mentioned before if they apply to your TRD-41412. Supplemental Schedule CR If you are claiming more than 20 credits, also file Supplemental Schedule CR, Compensating Tax Business-Related Tax Credit Supplemental Schedule CR. Attachments for each credit are required. The attachments are specified next to each credit type on this form See credits table, Attachments Required to Claim Schedule CR Business-Related Tax Credits on this page. If you will be requesting a refund of taxes previously paid or you have a refundable credit you will need to submit RPD41071, Application for Refund with supporting documentation. Payment Voucher If making a payment, place the payment and voucher at the front of the return, in this order. RPD-41071, Application for Tax Refund This form will need to be submitted with your return if you Attachments Required to Claim Schedule CR Business-Related Tax Credits To Claim These Compensating Tax Schedule CR Credits Attach Compensating Tax Business Related Tax Credit Schedule CR and these items Affordable Housing Tax Credit RPD-41301, Affordable Housing Tax Credit Claim Form, and a copy of voucher(s) issued by Mortgage Finance Authority (MFA). Advance Energy Tax Credit RPD-41334, Advanced Energy Tax Credit Claim Form: Repealed July 1, 2023. Alternative Energy Tax Credit RPD-41331, Alternative Energy Product Manufacturers Tax Credit Claim Form Biodiesel Blending Facility Tax Credit RPD-41321, Biodiesel Blending Facility Tax Credit Claim Form High-wage Jobs Tax Credit RPD-41290, High-Wage Jobs Tax Credit Claim Form Investment Tax Credit RPD-41212, Investment Credit Claim Form Rural Job Tax Credit RPD-41243, Rural Job Tax Credit Claim Form. Technology Jobs And Research And Development Tax Credit RPD-41386, Technology Jobs And Research and Development Tax Credit Claim Form. TRD-41412 4 www.tax.newmexico.gov Rev. 07/01/2023 determine that a refund is due on your account. You can also submit an application for a Tax Refund for compensating tax online through your taxpayer access point (TAP) account. If you need anyone to have access to your account information the following form will need to be submitted to the Department: • ACD-31102, Tax Information Authorization Tax Disclosure For your information on an application for refund and what needs to be submitted please see Refunds on page 10. Other Forms That May Be Needed This section describes forms that are related to TRD-41412 that you may need. If you are required to file an electronic return but you are unable to file electronically complete and submit the applicable following forms: • RPD-41350, E-file and E-Pay Exception Request • RPD-41351, E-File and E-Pay Waiver Request Notify the Department of a change to your business: • ACD-31015, Business Tax Registration Application and Update Form WHEN AND WHERE TO FILE AND PAY When and Where to File File your return as soon as you have all the necessary information. Each Form TRD-41412 is due on or before the 25th of the month following the end of the tax period being reported. If you file or pay late, you may need to pay interest and penalties. See Interest and Penalties on page 10. If the date falls on a weekend, a legal, state or national holiday, your Form TRD-41412 and payment due date will be extended to the next business day Electronic Returns and Payments If you have an electronic filing requirement, you must file electronically. See FYI-108, Electronic Filing Mandate for more information. You can file the return and pay at different times but different penalty and interest may apply if you miss the due date of the return. No penalty will be imposed for reporting and paying early. ØTAP TIP: TAP will allow you to file online as of the first day of the filing period. You must acknowledge that you are aware you are filing a return for a period that has not ended yet. Paper Returns To Mail File paper returns no later than the deadline of 25th of the month following the end of the tax period being reported. No penalty will be imposed for reporting and paying early. Filing Periods and Due Dates These dates should be selected based on your filing. The filing frequency for Compensating Tax is casual. This allows taxpayers to file when needed. MONTHLY FILING STATUS** BEGINNING ENDING DUE DATE* January 1 January 31 February 25 February 1 February 28 or 29 March 25 March 1 March 31 April 25 April 1 April 30 May 25 May 1 May 31 June 25 June 1 June 30 July 25 July 1 July 31 August 25 August 1 August 31 September 25 September 1 September 30 October 25 October 1 October 31 November 25 November 1 November 30 December 25 December 1 December 31 January 25 Determining a Timely Mailing Date for Paper Returns If the U.S. Postal Service postmark on the envelope bears a date on or before the due date, a mailed New Mexico compensating tax return and tax payment are timely. If the due date falls on a Saturday, Sunday, or a state or national legal holiday, the tax return is timely when the postmark bears the date of the next business day. If the date recorded or marked by a private delivery service is on or before the due date, delivery through a private delivery service is timely. Where To Mail Paper Returns and Payments Mail refund returns and returns to: New Mexico Taxation and Revenue Department P.O. BOX 25128 Santa Fe, NM 87504-5128 **Monthly Filing Status If you are a casual, seasonal, temporary, or special event filer use the monthly filing status. These filing frequencies allow for businesses that do not do regular business in New Mexico to file a singular return for the time period that business was conducted in New Mexico. TRD-41412 How To Pay Select the most convenient way to pay your taxes. You can pay with an electronic check, a credit card, a paper check, or a money order. See Paying Your Taxes on page 10. 5 www.tax.newmexico.gov Rev. 07/01/2023 Mailing a Payment and Voucher Do the following when mailing any payment by check or money order: • Make it payable to New Mexico Taxation and Revenue Department • Write your New Mexico Business Tax Identification Number (NMBTIN), CMP-PV, and the filing period on it. • Mail the voucher with your payment. Payment Vouchers for TRD-41412 Whether you submit your payment with or without your tax return, complete CMP-PV, Compensating Tax Payment Voucher and submit it with your payment. LINE INSTRUCTION What To Do Next Fill in your return using the line instructions that start on this page. When you finish filling in your TRD-41412, see Before Filing Your Return on page 9. changed mailing address please select the check box above. See above for more information. If you have a foreign address, enter the street address, city name and postal code in the appropriate line. Also complete the spaces for the foreign province and/or state and country. Follow the country’s practice for entering the foreign postal code, the province or state, and country. Do not abbreviate the country name. If your address is located within the United States of America leave these boxes blank. Top of Page 1 The top section of TRD-41412, page 1 gathers all your business information. Please be sure to fill out all applicable fields. Incomplete fields may result in processing delays. New Mexico Business Tax Identification Number (NMBTIN) This number was issued to you by the New Mexico Taxation and Revenue Department and can be located on your Registration Certificate. Note: This number was previously referred to as the combined reporting system number or CRS ID. E-mail address Enter the e-mail address you would like the Department to use to contact you if there are any questions about the return you are submitting. Phone Number Enter the phone number you would like the Department to use to contact you if there are any questions about the return you are submitting. No New Mexico Business Tax Identification Number? If you do not have NMBTIN, apply for one using the ACD31015, Business Tax Registration Application and Update Form. DO NOT file a return unless you have a NMBTIN issued by the Department. Filing a return without this number could result in a lost return or misapplied payment. Tax Period These dates should be selected based on your filing status. Your filing status can be located on your Registration Certificate received from the Department. The filing frequency will be monthly, quarterly or semiannually. Use the format MM/DD/CCYY. The dates should match your filing status. See table on page 5. Federal Employer Identification Number (FEIN) This number is issued by the Internal Revenue Service. If you have a FEIN associated to your business please add your FEIN here. If you do not have a FEIN leave this field blank. One reason you may not have a FEIN number is that your business is a sole proprietorship. Amended Return Check the box above only if you are amending over your original return. Be sure to fill out this return as it should have been originally filed for the specified Tax Period. The amended return will override all information reported on your original return. Social Security Number (SSN) Clearly enter your name and social security number (SSN) if your NMBTIN is associated with your SSN. Business Name Clearly print the name of the business associated with the New Mexico Business Tax Identification Number (NMBTIN). If you fail to check the amended box this will cause processing errors. If your Amended Return does not have the box checked it will delay posting of the return or it may cause the return to be rejected. New or Changed Address Check Box If the mailing address has changed or is a new address please mark X in this box. This will allow for your address to be updated in the Department’s system. If you need to change your address for all of your business accounts please complete and submit the ACD-31015, Business Tax Registration Application and Update Form Important: If your amended return will result in an overpayment on your account, you must submit a RPD-41071, Application for Refund. In order for the Department to validate the overpayment and issue a refund all required documents must be provided. Mailing address, City, State, Postal/ Zip Code Enter your mailing address here. If you have a new or TRD-41412 6 www.tax.newmexico.gov Rev. 07/01/2023 COLUMNS A THROUGH H Column D. Value (excluding Tax) The amounts in Column D should be the value of the property, services, license, or franchise being used. For property, value is the adjusted basis of the property for federal income tax purposes determined at the time of acquisition or introduction into New Mexico, or at the time of conversion to use, whichever is later. For services, the value is the value of the services at the time the services were performed, or the product of the service was acquired. The value of a license or franchise is the value of the license or franchise in its use in this state. Column A. Municipality/County Name On separate lines, enter the name of each municipality or county where you have Compensating tax to report. Refer to the Gross Receipts and Compensating Tax Rate Schedule for current rates, https://www.tax.newmexico.gov/governments/gross-receipts-location-code-and-tax-rate-map/. See the section on location code and tax rate at the beginning of these instructions. Column B. Location Code Enter the Location Code from the current Gross Receipts and Compensating Tax Rate Schedule, https://www.tax.newmexico.gov/governments/gross-receipts-location-code-andtax-rate-map/. Make sure that the location code corresponds with the municipality or county you listed in Column A. Important: A separate entry is required for each different location code and for each special code that is required. Column E. Deduction Code When using a deduction code, the associated compensating tax and deduction amounts will have to be reported on a separate line. See Example 2 at the bottom of this page. Column C. Special Rate Code Enter the alpha Special Rate Code from table T1 if applicable. This code is account specific. Do not use this code unless it applies to your tax situation. This code alerts the Department’s computer system to a special rate, distribution, or a reporting requirement that may apply to your industry or to the type of deduction being reported. • Currently there is only one deduction from compensating tax that is required to be reported separately, using deduction code D0-022. This deduction is located on page 12, table T2. Deductions Requiring Separate Reporting. All other deductions for compensating tax are not required to be reported separately. These deductions may be claimed on one line without using a deduction code. See example 2. A separate row is needed for compensating tax associated with a Special Rate Code (not the tax rate listed for the Municipality/County). Do not combine compensating tax calculate D under the regular rates from the Gross Receipts and Compensating Tax Rate Schedule. COLUMN F. Deduction Amount All deductions are to be reported in this column. Deductions must be provided under New Mexico statute and must be supported by evidence that shows the deduction is allowed based on requirements stated in statute or regulation. T1 Special Rate Codes A Local Economic Development Act (LEDA) Only qualifying entities under Section 5-10-14 NMSA 1978 use this special rate code. For more information on who qualifies for the special rate code please refer to the Local Economic Development Act Fund Section 5-1014 NMSA 1978. Note: If you are claiming a deduction that requires separate reporting (Column E), the value associated with the deduction and the deduction amount will be reported together on a separate line. See example 2. Important: Business expenses are not deductible from compensating tax. The deduction must be provided specifically in statute in order to claim the deduction on the compensat- Example 2 (Column E): Taxpayer A has compensating tax (CMP) for the city of Santa Fe. They have one deduction under Section 7-9-84 for $4,000 which uses deduction code D0-022. The value associated with this deduction and the deduction amount appear together on a separate line. All other values that need to be reported, as well as all other deduction amounts, are reported together on a separate line. Taxpayer A's return appears like this: Col. A Col. B Muni/County Location Code Col. C Col. D Col. E Col. F Col. G Col. H Col. I Special Rate Code Value Deduction Code Deduction Amount Taxable Value Tax Rate CMT Due 12,500 21,500 8.4375 1,814.06 4,000 6,000 8.4375 506.25 Santa Fe 01-123 34,000 Santa Fe 01-123 10,000 TRD-41412 D0-022 7 www.tax.newmexico.gov Rev. 07/01/2023 ing tax return. For a listing of available deductions, please see FYI-105: Gross Receipts & Compensating Taxes - An Overview, available at your local district office or online at https://www.tax.newmexico.gov/forms-publications/. (any fraction of a month is a full month) the TRD-41412 or payment is late, up to 20% of the tax due or a minimum of $5.00, whichever is greater. Note: The minimum $5.00 Penalty is also imposed for failure to file this form even if no tax is due. COLUMN G. Taxable Value Column D minus Column F. Note: This amount can never be less than zero. LINE 5. Interest See Example 3 on the this page. COLUMN H. Tax Rate Enter the rate from the Gross Receipts and Compensating Tax Rate Schedule, https://www.tax.newmexico.gov/governments/gross-receipts-location-code-and-tax-rate-map/. See the instructions for Column B. Interest is calculated daily but the rate will be set at the rate established for individual income tax purposes by the U.S. Internal Revenue Code (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-your-taxes-overview/penaltyinterest-rates/. COLUMN I. Compensating Tax Due Enter the Compensating Tax Due for each line by multiplying Column G by Column H. LINES 1 THROUGH 8 Tax Due X Quarterly Interest X Number of Days Late = Interest Due. LINE 1. Total Tax Due. Enter the sum of all Column I on Line 1 for the total amount of compensating tax due. Remember to include all rows from Column I. Example 3 (Line 5): Taxpayer’s tax due on Line 3 is $1,000. The payment due is fifteen days late. To calculate the interest due: multiply $1,000 by the daily rate of 0.01643856% (the daily interest rate for the 2nd quarter of 2019). The result is $0.16438356, which is the interest due for one day. Multiply $0.1643856 by fifteen (the number of days the payment is late). The interest is $2.465753425. (Round this number to the nearest cent) Enter the interest due of $2.47 on Line 5. LINE 2. Business Related Tax Credits Applied If you do not have any Business-Credits to apply, skip Line 2. Business-Related business tax credits applied from Schedule CR, line A. Attach Schedule CR. The amount on this line should not be more than Line 1. For information about these credits, see the instructions for Schedule CR. $1,000 X 0.00016438356 X 15 = $2.465753425 If you are eligible, do the following: • Complete Schedule CR. • From Schedule CR, line A, enter the total amount you claimed and applied to your tax due one TRD-41412, line 2, • From Schedule CR, line B, enter the total amount of tax credit that may be refunded to you, on TRD-41412, line 7. See instructions for line 7. • Attach Schedule CR (and any required forms or documentation to support your claim) to your TRD-41412. • LINE 3. Net Tax Subtract Line 2 from Line 1. If no amount was claimed on Line 2, carry amount in Line 1 down to Line 3. This amount cannot be more than Line 1. Note: You are not liable for interest if the total interest due is less than $1.00. Important: When you pay your principal tax liability, interest stops accruing. Because it stops accruing, you do not need to calculate the amount of interest due on your return past the date you pay the principal tax. LINE 6. Total Amount Due Add Lines 3, 4, and 5. A TRD-41412 payment should not be combined on the same check or money order with any other tax or fee being paid to the Department. If possible include your New Mexico Business Tax Identification Number (NMBTIN). Please send your completed Form TRD-41412, Compensating Tax Return with payment to: Important note about penalty and interest: If penalty and interest are due, you can leave these fields blank and the Department will compute penalty and/or interest for you. New Mexico Taxation and Revenue Department P.O. Box 25128 Santa Fe, NM 87504-5128 LINE 4. Penalty. If you file late and owe tax, or if you do not pay the tax on or before the date your return is due, enter penalty here. Important: Continue to Line 7 only if you are claiming refundable business-related credits. Penalty is applied for failure to pay or file on time. Penalty is calculated at a rate of 2% of Line 4 per month or partial month TRD-41412 8 www.tax.newmexico.gov Rev. 07/01/2023 LINE 7. Refundable Business-Related Tax Credits. Refundable Business-Related tax credits applied from Schedule CR, line B. DO NOT include business-related tax credit amounts applied to your tax liability on Line 2. Attach Schedule CR and required supporting documentation specified on Schedule CR to your TRD-41412, Compensating Tax Return. ing. If there is a tax due, place your payment and voucher at the front of the return. 6. Make a copy of your original return and attachments for your records, and keep it in a safe place in case you need to refer to it later. If someone prepares your return for you, get a copy for your records. Supporting Documents TRD-41071 Schedule CR LINE 8. Overpayment Subtract Line 7 from Line 6, enter total overpayment/refundable credit here. Schedule A Important: Any overpayment or refund requests must be accompanied by a completed RPD-41071, Application for Tax Refund and any required additional documentation. Providing this information will decrease the time it takes to review and process your refund request. TRD-41312 FUEL ONLY- This box replaces the reporting requirement of information return form RPD-41296, Report on Sales or Use of Fuel Specially Prepared and Sold for Use in Turboprop or Jet-Type Engines. • Enter the total amount of compensating tax attributable to the sale of fuel specially prepared and sold for use in turbo-prop or jet-type engine. Important: Do not staple or tape your payment to the payment voucher. Paying Your Taxes Make your check or money order payable to New Mexico Taxation and Revenue Department. Mail the CMP-PV with your payment to: New Mexico Taxation and Revenue Department P.O. Box 25128 Santa Fe, NM 87504-5128 Taxpayer Access Point (TAP): https://tap.state.nm.us If you file using TAP and you owe tax, you will be given the option to pay your tax once you are finished filing your return. You may use a credit card for an online payment. You can also pay by electronic check, or mail a check or money order to the Department with a payment voucher. Note: A convenience fee is applied for using a credit card. The State of New Mexico uses this fee, calculated on the transaction amount, to pay charges from the credit card companies. There is no charge for an electronic check. Before Filing Your Paper Return Now that you have completed your TRD-41412: 1. Check the figures and your arithmetic on your TRD-41412 and on all your attachments. Make sure these are original, official TRD-41412 form and Schedules. 2. If you created a working TRD-41412, use blue or black ink to carefully transfer your figures onto the clean TRD41412 you plan to submit. 3. Sign and date your TRD-41412. 4. If your return shows tax due on Line 6, complete the CMP-PV payment voucher. 5. Assemble your return as shown for most efficient processTRD-41412 9 www.tax.newmexico.gov Rev. 07/01/2023 REFUNDS Refunds If your account has an overpayment and you are due a refund or you are claiming a refundable business-related tax credit you must submit Form RPD-41071, Application for Tax Refund and all required supporting documentation. • Sum of money or other property claimed • Period(s) for which the overpayment was made • Brief statement of the facts and law on which the claim is based, referred to as the basis for refund, and documentation to support and substantiate the taxpayer's basis for the refund • If applicable, a copy of an amended return for each tax period for which the refund is claimed. Information Required to Claim a Refund According to Section 7-1-26 NMSA 1978, the following information is required to claim a refund: • Taxpayer's name, address, and identification number • Type of tax for which the refund is claimed, the credit or rebate denied, or the property levied upon See Form RPD-41071, Application for Tax Refund for more information. INTEREST AND PENALTIES Interest Interest accrues on tax that is not paid on or before the due date of your return. • Falsifies any return, statement, or other document; • Willfully assists, procures, advises, or counsels the filing of a false return, statement, or document; • Files any return electronically, knowing the information on the return is not true and correct as to every material matter; or • Removes, conceals, or releases or aids in the removal, concealment, or release of any property on which levy is authorized by the Department. Important: Interest is a charge for the use of money and by law it cannot be waived. When you pay your principal tax liability, penalty and interest stop accruing. Negligence Penalty for Late Filing or Late Payment If you file late and owe tax, or if you do not pay your tax when due, you receive a penalty of 2% of the tax due for each month or part of a month you do not file the return or you do not pay the tax, up to a maximum of 20%. Whoever commits tax fraud may be found guilty of a petty misdemeanor, misdemeanor, fourth degree felony, third degree felony, or second degree felony. Additional information can be located under Section 7-1-73 NMSA 1978. This penalty applies when your failure to timely file or pay is due to negligence or disregard of the rules and regulations, but without intent to defraud. Tax Fraud A person is guilty of tax fraud if the person: Returned Check Penalty A check that is not paid by a financial institution does not constitute payment. A penalty of $20 is assessed for a bad check in addition to other penalties that may apply to a late payment. YOUR RIGHTS UNDER THE TAX LAW Your Rights To help avoid tax problems, keep accurate tax records and stay current with tax law changes. Information in these instructions and other Department publications help you do both. then select FYIs from the Publications folder. Refunds If the Department denies your claim for refund in whole or in part, you may file a protest with the Department within 90 days of either mailing or service of the denial, or you may file a lawsuit with the Santa Fe District Court. While you can resolve most tax problems informally, it is important to understand you must exercise certain rights provided to you under law within specific time frames. If the Department makes an adjustment to your return, the Departments sends you a notice explaining the adjustment and the procedures to use if you disagree. If the Department requests additional relevant documentation from you, the claim is not complete until the documentation is received within the specified time period. The date the complete claim is submitted will determine when the 180 days begin. If you do not provide the additional requested relevant documentation, the claim for refund remains incomplete and will not be processed. Useful Publications Publication FYI-402, Taxpayer Remedies and FYI-406, Your Rights Under the Tax Law are available at www.tax. newmexico.gov. At the top, click FORMS & PUBLICATIONS, TRD-41412 10 www.tax.newmexico.gov Rev. 07/01/2023 New Mexico Taxpayer Bill of Rights Most tax transactions happen without problems. Sometimes, thought, troubles arise through misunderstanding, mathematical error, missed deadlines, lost papers, high volume of transactions and many other situations. Changes in the law may make earlier information outdated. Over the years the Legislature and the Department have created ways to handle difficulties according to the provisions of the state tax code. Following are some of your rights as outlined in Sections 7-1-4.1 through 7-1-4.3 NMSA 1978: • The right to available public information and prompt and courteous tax assistance; • The right to representation and advice by counsel or other qualified representatives at any time during your interactions with the Department according to provisions of Section 7-1-24 NMSA 1978, or with the Administrative Hearings Office in accordance with the provisions of the Administrative Hearings Office Act; • The right to have audits, inspections of records and meetings conducted at a reasonable time and place according to Section 7-1-11 NMSA 1978; • The right to have the Department conduct its audits in a timely and efficient manner and be entitled to the correct calculation of interest as provided in the Tax Administration Act under Section 7-1-67 and 7-1-68 NMSA 1978; • The right to simple, non-technical information explaining procedures, remedies and rights during audit, protest , appeals and collection proceedings under the Tax Administration Act; • The right to receive an explanation of audit results and the basis for audits, assessments or denials of refunds that identify tax, interest or penalty due; • The right to seek review through formal or informal proceedings of findings or unfavorable decisions arising from determinations during audit or protest procedures according to Section 7-1-24 NMSA 1978 and the Administrative Hearings Office Act; • The right to have your tax information kept confidential unless otherwise specified by law in Sections 7-1-8 through 7-1-8.11 NMSA 1978; • The right to an abatement of an assessment of taxes incorrectly, erroneously or illegally made (Section 7-1-28 NMSA 1978) and a right to seek a compromise of an asserted tax liability. When the Secretary of Taxation and Revenue in good faith doubts that you owe us what we claim you owe, you also have the right to seek a compromise if one exists in your particular case (Section 7-1-20 NMSA 1978); • The right to clear information of the consequences if a tax assessment is not paid, secured, protested or otherwise provided for according to Section 7-1-16 NMSA 1978. If you become a delinquent taxpayer, upon notice of delinquency you have the right to timely notice of collection actions that require sale or seizure of your property under the Tax Administration Act, and • The right to apply to pay your tax obligations by installment payment agreements according to the provisions of Section 7-1-21 NMSA 1978. Confidentiality Provisions: Statutes protecting the privacy of your taxes are strict and are outlined in Sections 7-1-8 through 7-1-8.11 NMSA 1978. Section 7-1-8.2 NMSA 1978 limits requiring the Department to answer questions about whether a taxpayer is registered to do business in New Mexico or is registered for other tax programs. It does not allow employees to say whether you have filed a return. Employees may discuss your account only with you or your authorized representative. A hearing officer’s written ruling on questions of evidence or procedure pursuant to the Administrative Hearings Office Act are in the public domain. The name and identification number of the taxpayer requesting the ruling are not public record. Public record includes the monthly gasoline tax reports of numbers of gallons of gasoline and ethanol-blended fuels received and deducted, and the tax paid by each filer or taxpayer pays. Identities of rack operators, importers, blenders, suppliers or distributors and the number of gallons of gasoline and other fuels are public record. The Department may reveal to the Gaming Control Board the tax returns of license applicants and their affiliates. TRD-41412 Audit Provisions: The Department must provide you with written, dated notice that an audit is about to begin on a specific date, and the notice must tell you which tax programs and reporting periods will be covered. We must issue a second notice, which states any outstanding records or books of account requested and not yet received, between 60 and 180 days after the audit begins. If you do not produce the records within 90 days, the Department can issue an assessment of tax on the basis of the information as it stands. If you need additional time, you must submit a specific request in writing. Interest on outstanding liabilities accrues if the Department does not issue an assessment within 180 days of the notice of outstanding records or books, or within 90 days after time has expired under your request for additional time; however, you are entitled to an abatement of interest for the period of time after you have complied with Department requests and the Department has not acted on the audit. Administrative Hearing Procedures: A hearing officer may not engage or participate in any way in the enforcement or formulation of general tax policy other than to conduct hearings. You may request the Chief Hearing Officer of the Administrative Hearings Office determine if a hearing officer has engaged or participated in the enforcement or formulation of tax policy and if the hearing officer’s activities have affected his or her impartiality. The Chief Hearing Officer may designate another hearing officer for the matter. Hearing officers may not communicate unilaterally about a matter you have protested while that matter is still pending. The chief hearing officer may appoint another hearing officer if that occurs. You may request a written ruling on any contested question of evidence in matters in which you have filed a pending written protest. You also may request that two or more protests on related issues be combined and heard jointly, and the hearing officer shall grant the request unless it creates an unreasonable burden on the Department. Credit Claims: The Department has 120 days from the filing date to approve or deny a statutory tax credit. If it does not act, the credit is approved. For more information see Section 7-1-29.2 NMSA 1978. Refund Offsets The Secretary decides whether a refund of tax due you may be offset against your other tax liabilities, and you will receive notice that the refund will be made accordingly. You are entitled to interest until the tax liability is credited with the refund amount. Please see the paragraph above on “Audit Provisions” for interest due to you if the Department does not offset a refund or credit against your other tax liabilities within the prescribed time. The Department may make a direct refund of overpaid taxes to the taxpayer without requiring the taxpayer to file a refund claim. The Department does not have to pay interest on credits or refunds if it applies the amount to a tax interception program, to an estimated payment, or to offset prior liabilities of the taxpayer. Awarding of Costs and Fees: If you prevail in an administrative or court proceeding brought by you or against you after July 1, 2003, under the Tax Administration Act, you may be entitled to a judgment or a settlement for reasonable administrative costs connected to the action. Penalty: The Department may not assess penalty against you if you fail to pay tax when due because of a mistake of law made in good faith and on reasonable grounds. If the Secretary determines that it is unfair to hold a spouse or former spouse liable for payment of unpaid taxes, the Secretary may decline to take action against the spouse or former spouse of the person who actually owes the tax. In extreme cases of delinquency under Section 7-1-53 NMSA 1978 the Department may enjoin a taxpayer from continuing in business after a hearing and until the delinquency is cleared. 11 www.tax.newmexico.gov Rev. 07/01/2023 DEDUCTION CODES T2 Deductions Requiring Separate Reporting D0-022 Jet Fuel 40% (7-9-84) TRD-41412 If you sell jet fuel for use in turboprop or jet engines, 40% can be deducted under Section 7-9-84. 12 www.tax.newmexico.gov
Extracted from PDF file 2023-new-mexico-form-trd-41412-instructions.pdf, last modified September 2023

More about the New Mexico Form TRD-41412 (Instructions) Individual Income Tax TY 2023

Instructions for Form TRD-41412

We last updated the Compensating Tax Return (Instructions) in January 2024, so this is the latest version of Form TRD-41412 (Instructions), fully updated for tax year 2023. You can download or print current or past-year PDFs of Form TRD-41412 (Instructions) directly from TaxFormFinder. You can print other New Mexico tax forms here.

Related New Mexico Individual 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 TRD-41412 (Instructions).

Form Code Form Name
Form TRD-41412 Compensating Tax Return

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Form Sources:

New Mexico usually releases forms for the current tax year between January and April. We last updated New Mexico Form TRD-41412 (Instructions) from the Taxation and Revenue Department in January 2024.

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About the Individual Income Tax

The IRS and most states collect a personal income tax, which is paid throughout the year via tax withholding or estimated income tax payments.

Most taxpayers are required to file a yearly income tax return in April to both the Internal Revenue Service and their state's revenue department, which will result in either a tax refund of excess withheld income or a tax payment if the withholding does not cover the taxpayer's entire liability. Every taxpayer's situation is different - please consult a CPA or licensed tax preparer to ensure that you are filing the correct tax forms!

Historical Past-Year Versions of New Mexico Form TRD-41412 (Instructions)

We have a total of two past-year versions of Form TRD-41412 (Instructions) 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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