Form RPD-41355 Quarterly Pass-Through Entity Withholding Tax Return

$5 000 x 0 010958904 x 5 = 2 74 If a PTE has deducted and withheld an amount pursuant to the Oil and Gas Proceeds and Pass Through Entity Withholding Tax Act from the net income of an owner that is also a PTE the payee PTE may take credit for that amount in determining the amount the payee PTE must withhold and deduct If an individual a signed Form RPD 41354 Decla ration of Principal Place of Business or Residence in New Mexico is on file that the individual is a PLEASE CUT AND RETURN BOTTOM PORTION WITH YOUR PAYMENT The amount of tax withheld from the owner's net income may be reduced but not below zero by the amount re "Net Income" means for any pass through entity (PTE) the income reported to an owner by the PTE for federal income tax purposes including ordinary business income or loss net rental income or loss guaranteed payments to a part "Owner" means a partner in a partnership not taxed as a corporation for federal income tax purposes for the tax year a shareholder of an S corporation or of a corporation other than an S corporation that is not taxed as a corporation for federal income tax purposes for the tax year a member of a limited liability company or any similar person holding an ownership interest in any pass through entity Owner also means a performing artist to whom payments are due from "Partnership" means a combination of persons including a "Pass through entity" means a personal services business "Personal Services Business" means a business organization (b) of Section 7704 of the Internal Revenue Code (owners) net income according to the Oil and Gas Proceeds and Pass Through Entity Withholding Tax Act (7 3A 1 through 2012 Annual Withholding of Net Income From a Pass Through 2nd quarter of 2011 is 0 010958904% (annual rate 3%) If 3 The owner maintains its place of business or residence in New Mexico: 4 Documentation is on file showing that the owner is granted exemption from the federal income tax by the 5 Documentation is on file showing that the owner is the United States New Mexico or any agency instrumen 6 Documentation is on file showing that the owner is a federally recognized Indian nation tribe or pueblo or 7 3A 9 NMSA 1978) must submit annual reports to the 7 Documentation showing the PTE s inability to make payment of withholding from net income for the quar a corporation limited liability company partnership or other entity not a sole proprietorship taxed as a corpo ration for federal income tax purposes for the tax year; a partnership that is organized as an investment partner ship in which the partner's income is derived solely from interest dividends and sales of securities; a personal services business A PTE is also required to file annual returns to the Department and to provide to each of its owners sufficient information to enable the owner to comply with the provisions of the Income Tax Act and the Corporate Income and Franchise Tax Act with a publicly traded partnership as defined in Subsection a single member limited liability company that is treated as a disregarded entity for federal income tax purposes; or a sole proprietorship; adjustment listed in these instructions on page 2 When an adjustment occurs include on this line the New Mexico net income from the eligible transaction to which the tax with held was computed thereby excluding that amount from net income subject withholding on line 3 Adjustments to the amount withheld: also satisfy the terms of the agreement by filing its New amending a previously filed RPD 41355 Pass Through Entity Withholding Tax Return If requesting a refund due to Amending: Check the amended indicator box if you are Amount withheld an estate or trust that does not distribute income to beneficiaries; an overpayment of tax withheld complete Form RPD 41071 and on the due date of this return or by another form of payment such as estimated payments The owner can Annual Withholding of Net Income From a Pass Through Entity Detail Report any agency instrumentality or political subdivision Application for Tax Refund and submit it with the amended return At the option of a PTE a PTE may agree with the owner been required to withhold and remit to the Department on behalf of the owner pursuant to the Oil and Gas Proceeds and Pass Through Entity Withholding Tax Act The pay ments by the owner may be remitted on Form RPD 41356 Pass Through Entity Owner's Quarterly Tax Payment Beginning (mm dd yy) Ending (mm dd yy) by Department directive and may not exceed the higher of by the State of New Mexico or its political subdivisions less Check if amended City state ZIP: Check if address deferred income reported in the year Department reporting the owner's share of net income and the amount of tax withheld for each owner The form used Division of Income for Tax Purposes Act ended prior to the Department s notification Entity Detail Report for the exceptions to the requirement to Exceptions and adjustments Exceptions to the requirement to withhold federal Form W 9 or a copy of the determination letter from the IRS; FEIN: FEIN: Enter the PTE's federal employer identification number (FEIN) File and Pay the tax due online using the Department s web site at https://efile state nm us A PTE filing this form for the first time who has not previously filed any New Mexico tax return to the Taxation and Revenue Department using the PTE s name and federal employer s identification number as shown on this form will need to file this form by paper If you have previously filed this form or any New Mexico tax return you are encouraged to file using the Department s web site First time filers will need to create a Login Name and Password If you need additional information regarding forms or instructions please visit www tax newmexico gov File on line at www tax newmexico gov following the year for which the statement is made Form RPD 41359 does not need to be submitted to the Department For assistance call (505) 827 0825 For example say a taxpayer owes $5 000 for the 1st quarter of 2011 due April 25th 2011 The daily interest rate for the For tax year 2011 the exceptions to the requirement to with from the discharge of indebtedness in conjunction with has failed to remit the required payment the agreement is no longer acceptable by the Department as reasonable cause for failure to withhold The PTE is not responsible for withholding on the net income earned in quarters that hold are as follows See the instructions to Form RPD 41367 If a corporation a signed Form RPD 41354 Decla ration of Principal Place of Business or Residence in New Mexico is on file that the corporation s prin cipal place of business is in New Mexico or If a corporation incorporated in New Mexico the corporation's incorporation papers are on file with sufficient portions of those papers to demonstrate If the amount to be withheld from an owner's share of net income in any calendar quarter is less than $30 00 no withholding is required If you believe that you have a valid reason for not withhold ing from an owner other than the reasons listed above you must obtain approval from the Secretary before you file your If you cannot electronically file you may submit this form to: New Mexico Taxation and Revenue Department P O Box 25127 Santa Fe NM 87504 5127 Make the check or money order payable to New Mexico Taxation and Revenue Department Indicate PTW and enter the owner's FEIN or If your report period begins on or after: the effective rate is: Jan 1 2011 4 90% important definitions see the instructions IMPORTANT DEFINITIONS: income from obligations of the United States less expenses incurred to earn that income; in the case of a subchapter S corporation "net income" also includes income taxable to the corporation for federal income tax purposes Net income also includes appropriate allocation and apportionment of that income to New Mexico in accordance with the Uniform incorporation in New Mexico or information from the Public Regulation Commission web site indicat ing that the corporation is a New Mexico corpora tion in good standing and its address or ing Tax Rate Table on the previous page INSTRUCTIONS FOR COMPLETING THIS FORM: Complete all information requested Round money amounts in lines 1 through 4 to the nearest whole dollar; for example; enter $10 49 as $10 and $10 50 as $11 Interest is outside the U S January 1 2011 of an applicable debt instrument for the period 2014 through 2018 and the entity has insuf ficient cash to remit the withholding amount due on the Line 1: Enter the PTE's New Mexico net income earned for the quarter If a PTE has been in existence for at least one full tax year prior to the current calendar year the PTE may use one fourth of its total New Mexico net income for the preceding full tax year to compute the amount required to be deducted and withheld each quarter Enter the New Mexico net income on lines 1 and 3 then complete the remainder of the form as instructed Line 2: Enter the New Mexico net income that was not Line 3: Subtract line 2 from line 1 and enter the amount on line 3 This is the New Mexico net income subject to with holding Line 4: Enter the amount of tax withheld from the net income of the PTE subject to withholding and reported on line 3 Calculate withholding by multiplying the net income subject to withholding of the owner (line 3) by 0 049 or the current rate according to the Pass Through Entity Withhold Line 5: Add penalty if the entity fails to file timely or to pay Line 6: Interest accrues daily on the unpaid principal of tax due and can change on a quarterly basis The effective an nual and daily interest rates are posted on the Department's web page at www tax newmexico gov or can be obtained by contacting the Department Line 7: Add lines 4 5 and 6 to compute the total due Enter the sum on line 7 location of the individual's abode in New Mexico loss less associated deductions plus interest earned on a state or local bond less interest earned on a bond issued Mexico income tax return and paying the tax due The must be provided to the owner by February 15th of the year Name: Name: Enter the name and mailing address of the PTE Mark the box if the address is outside the U S ner of a partnership dividends royalties and capital gain or Net income Net income subject to withholding NOTE: A disregarded entity is NOT a PTE for the purposes of pass through entity withholding The PTE can accept from a disregarded entity the agreement or the residency or any other business association other than: organization described in Section 501(c)(3) of the In Other Reporting Requirements owner during the quarter in which case the PTE is lia ble for payment of the withholding amount due up to the extent of the cash payment made during the quarter; Page 1 of 3 Page 2 of 3 Page 3 of 3 partnership joint venture common trust fund association Pass through entities (PTEs) who are required to withhold Pass Through Entity Withholding Tax Rate Table Penalty pool or working agreement or any other combination of per sons treated as a partnership for federal income tax purposes PTE 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 agreement pertains If the Department notifies the PTE that the owner PTEs are also required to provide sufficient information to enable the owners to comply with the provisions of the In come Tax Act and the Corporate Income and Franchise Tax Act with respect to the owner s share of the net New Mexico income A PTE uses Form RPD 41359 Annual Statement of Pass Through Entity Withholding to report to the owners the net income and the New Mexico tax withheld These forms QUARTERLY PASS THROUGH ENTITY WITHHOLDING TAX RETURN Quarterly Pass Through Entity Withholding Tax Return Instructions Quarterly Pass Through Entity Withholding Tax Return Instructions Quarterly report period: Quarterly report period: Enter a quarterly report period that is based on a calendar quarter Enter the month day and quired to be withheld for oil and gas proceeds resident of New Mexico and declaring the physical respect to the owner's share of the net income See "Other Reporting Requirements" on page 3 of the instructions to this form return Please include with your request detailed information to support an alternative reasonable cause for not withhold ing To request the Secretary s approval submit a written request to the Albuquerque District Office at New Mexico Taxation and Revenue Department Corporate Income Tax Audit Supervisor P O Box 8485 Albuquerque NM 87198 8485 For assistance call 505 841 6221 Signature Date E mail address Signature: The form is not complete until the PTE or the PTE's authorized agent has signed and dated the report Enter the e mail address of the PTE or the PTE's authorized agent SSN on the payment PTW payments should not be sent with any other payments to the Department STATE OF NEW MEXICO STATE OF NEW MEXICO TAXATION AND REVENUE DEPARTMENT STATE OF NEW MEXICO TAXATION AND REVENUE DEPARTMENT statement to support a valid reason to not withhold Street/box: tality or political subdivision of either; Tax Due x the daily interest rate for the quarter x number of days late = interest due tax from their owners partners members or beneficiaries TAXATION AND REVENUE DEPARTMENT ter due to non availability of cash or due to contracts and other binding written covenants with unrelated third parties unless cash payments have been made to any ternal Revenue Code including a copy of the owner s that receives payments for the services of a performing artist for purposes of the film production tax credit that the owner pay the amount that the PTE would have the amount on line 4 when due Calculate the penalty by multiplying the unpaid amount on line 4 by 2% then by the number of months or partial months for which the return or payment is late not to exceed 20% of the tax due The penalty may not be less than $5 00 The Department must give a 90 day notice of a change to The formula for computing interest is: the maximum tax bracket rate set for the Personal Income Tax Act or the Corporate Income and Franchise Tax Act The PTE made a timely election for federal income tax purposes that changes the net income of a pass through entity in a prior quarter is reasonable cause for failure to withhold and deduct the required amounts on the change in net income due to the election or The rate of withholding is 4 9% for report periods beginning on or after January 1 2011 The withholding rates are set the reacquisition after December 31 2008 and before the tax due date is April 25th 2011 and he is paying on April 30th 2011 the payment is 5 days late Using the formula the withholding rate thereof; to fulfill the annual reporting requirement is RPD 41367 TOTAL United States Commissioner of Internal Revenue as an When an adjustment occurs include on line 2 the New Mexico net income from the eligible transaction to which the tax withheld was computed thereby excluding that amount from net income subject withholding on line 3 When to File: The withholding tax is due on or before the 25th day of the month following the close of the calendar quarter in which the net income was earned If the due date of the return falls on a Saturday Sunday or state or national legal holiday the return is timely if the postmark bears the date of the next business day If no net income was earned during a quarter or no payment of pass through entity withholding was due for a reporting period no quarterly return is due Where to File: File and pay the tax due online using the Department s web site at https://efile state nm us See also "File and Pay" in these instructions If you need additional information regarding forms or instructions please visit www tax new mexico gov If you cannot electronically file see the instructions For assistance completing this return call (505) 827 0825 Who Must File: For tax years beginning January 1 2011 a pass through entity (PTE) must deduct and withhold from each nonresident owner's share of New Mexico net income and remit the tax withheld to the Department using Form RPD 41355 Quarterly Pass Through Entity Withholding Tax Return For exceptions and adjustments to the requirement to withhold and With respect to tax years 2014 through 2018 the PTE has elected pursuant to 26 USC 108(i) to defer income withheld because the owner(s) qualified for an exception or withhold for tax years beginning on or after January 1 2012 year of the first and last day of the calendar quarter in which the tax was withheld For example if filing for the first quarter of 2011 enter 01 01 11 to 03 31 11 in the space provided You are not required to file this return if reporting for a tax year after January 1 2012 or a tax year ending before January 1 2011 For tax years 2012 and after you are required to report and remit the tax due annually using the Form or the web application for Form RPD 41367 Annual Withholding of Net Income From a Pass Through Entity Detail Report You may continue to use the web application for this form to pay the tax due if paying before Form RPD 41367 for the tax year or the web application for the tax year is available