New Mexico Compensating Tax Return (Instructions)

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.
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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.
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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

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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

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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.

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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

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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

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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

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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

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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

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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.

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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.

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