Form RPD-41353 Owner's or Remittee's Agreement to Pay Withholding on Behalf of a Pass-Through Entity or Remitter

1 For tax years beginning on or after January 1 2011 but not after January 1 2012 the owners were required to pay the withholding quarterly A PTE that is a personal service business cannot enter into an agreement with its owners A personal services busi ness means a business organization that receives payments for the services of a performing artist for purposes of the film production tax credit A remitter may enter into an agreement with certain remittees that the remittee will remit to the New Mexico Taxation and Revenue Department at the time and in the manner required by the Department the amounts that the remitter is required to withhold and remit with respect to payments to the remittee Similarly a pass through entity may enter into an agreement with a certain owner that the owner will remit to the Department the amounts that the pass through entity is required to withhold and remit with respect to payments to the owner Qualifying remittees or owners are those that are individuals who are not residents of New Mexico or businesses that are not principally located in New Mexico Im portant: A PTE that is a personal service business cannot enter into an agreement with its owners See page 2 for the An owner or a remittee who is a PTE may not use Form RPD 41354 Declaration of Principal Place of Business or Residence in New Mexico to avoid the withholding requirement of the paying PTE or remitter The PTE owner or PTE remittee may however enter into an agreement and submit this form RPD 41353 to the paying PTE or remitter to avoid the withholding City state and ZIP code City state and ZIP code definition of a personal service business Do not submit this agreement to the Department The agreement must be retained in the remitter s or the pass through entity s records The remitter or pass through entity may be required to furnish a true and correct copy of this agreement upon the Department s request Effective period of agreement (you must check one): Current Year Indefinite Term Through Federal employer identification number Check one: FEIN SSN Federal employer identification number Check one: FEIN SSN If the remittee or the owner does not make the required payments as agreed the remitter or the pass through entity will be notified by the Department and the remitter or pass through entity will thereafter be liable for the payments The remit ter is not responsible for withholding on oil and gas payments made prior to the Department s notification and the PTE is not responsible for withholding on net income earned in the tax year that ended prior to the Department s notification Name Name ON BEHALF OF A PASS THROUGH ENTITY OR REMITTER OWNER S OR REMITTEE S AGREEMENT TO PAY WITHHOLDING OWNER S OR REMITTEE S NAME AND MAILING ADDRESS PASS THROUGH ENTITY S OR REMITTER S (Payor) NAME AND MAILING ADDRESS Owner s or remittee s signature Date Title I agree to make timely payment of all taxes imposed by the State of New Mexico with respect to my share of the income reported by the pass through entity or remitter named above to whom I have made this agreement Pass through entity s or remitter s signature Date Title Remittances to the Department pursuant to this agreement may be counted towards the corporate income tax or personal income tax liability of remittee s or owner s estimated tax liability and may not be credited to the estimated tax due by the remitter or the pass through entity State of New Mexico Taxation and Revenue Department Street or other mailing address Street or other mailing address The agreement must be in the remitter s or pass through entity s possession at the time it files its return for the tax year to which the agreement pertains The agreement may remain in effect for a single tax year multiple tax years or an in definite term and may be revoked or amended on mutual agreement of the parties When a nonresident owner becomes a resident of New Mexico the agreement submitted by that owner is revoked automatically The agreement will become invalid if the New Mexico Taxation and Revenue Department notifies the pass through entity or remitter that the owner or remittee has failed to pay the tax due Agreements made on Form RPD 41286 Nonresident Recipient of Oil and Gas Proceeds Income Tax Agreement or Form PTE TA Nonresident Income Tax Agreement are not valid after January 1 2011 The payments by the owner may be remitted annually1 by the due date of their federal income tax return or through withholding tax Owners however may be subject to penalty and interest on underpayment of estimated personal or corporate income tax To avoid penalty and interest on underpayment of estimated tax review the instructions for Form RPD 41272 if an individual or Form RPD 41287 if an entity subject to New Mexico corporate income tax The payments by the remittee shall be remitted on Form RPD 41357 Oil and Gas Proceeds Remittee s Quarterly Tax Payment on the due date of this return or by another form of payment such as estimated payments or withholding tax The PTE or remitter must have a completed Form RPD 41353 Owner s or Remittee s Agreement to Pay Withholding on Behalf of a Pass Through Entity or Remitter on file at the time it files its return for the tax year to which the agree ment pertains The signature of both parties is required: Upon notice by the Department that the remittee or owner has not complied with the requirements of the agreement the remitter or pass through entity must revoke the agreement and withhold and remit with respect to future payments to the remittee or owner pursuant to the Oil and Gas Proceeds and Pass Through Entity Withholding Act Once an agreement is revoked a new agreement between the remitter and remittee or between the pass through entity and the owner may not be entered into for two years from the date the Department notifies the remitter or the pass through entity of the remittee s or owner s failure to pay amounts required by the agreement