Form RPD-41367 Annual Withholding of Income From a Pass-Through Entity Detail Report

a publicly traded partnership as defined in Subsection (b) of Section 7704 of the Internal Revenue Code 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 partner of a partnership dividends royalties and capital gain or loss less associated deductions plus interest earned on a state or local bond less interest earned on a bond issued by the State of New Mexico or its political subdivisions less 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 Owner means a partner in a partnership not taxed as a Partnership means a combination of persons including a partnership joint venture common trust fund association pool or working agreement or any other combination of per sons treated as a partnership for federal income tax purposes Pass through entity means a personal services business or any other business association other than: Personal Services Business means a business organization Supplemental Form $100 no withholding is required *129080200* *129090200* *For tax years beginning on or after January 1 2011 a PTE was required to remit the tax quarterly The requirement to remit the tax annually was reinstated for tax years beginning on or after January 1 2012 1 If the amount to be withheld from an owner s allocable share of the net income in any calendar year is less than 2 If the owner is an insurance company and falls under the provisions of Section 59A 6 6 NMSA 1978 no with holding is required 2012 Annual Withholding of Net Income From a Pass Through Entity Detail Report 2012 Annual Withholding of Net Income From a Pass Through Entity Detail Report Instructions 2012 Annual Withholding of Net Income From a Pass Through Entity Detail Report Instructions 3 At the option of a PTE a PTE may agree with the owner that the owner pay the amount that the PTE would have been required to withhold and remit to the Department on behalf of the owner pursuant to the Oil and Gas Pro ceeds and Pass Through Entity Withholding Tax Act The owner remits the tax required to be withheld using a form of payment such as estimated payments or withholding The owner can also satisfy the terms of the agreement by filing its New Mexico income tax return and paying the tax due The 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 agree ment pertains If the Department notifies the PTE that the owner 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 periods that ended prior to the Department s notification 4 The owner maintains its place of business or residence in New Mexico: 5 Documentation is on file showing that the owner is 9 With respect to tax years 2014 through 2018 the PTE has elected pursuant to 26 USC 108(i) to defer income from the discharge of indebtedness in conjunction with the reacquisition after December 31 2008 and before January 1 2011 of an applicable debt instrument for the period 2014 through 2018 and the entity has insufficient cash to remit the withholding amount due on the deferred a corporation limited liability company partnership or other entity not a sole proprietorship taxed as a corporation for federal income tax purposes for the tax year; a partnership that is organized as an investment partner ship in which the partner s income is derived solely from interest dividends and sales of securities; a personal services business a single member limited liability company that is treated as a disregarded entity for federal income tax purposes a sole proprietorship; About Tax Credits: A PTE may not report tax credits on address of each recipient of a taxable distribution of New Adjustments to the amount withheld: Amending: Check the amended indicator box if you are amending a previously filed Form RPD 41367 Annual With holding of Net Income From a Pass Through Entity Detail Report If requesting a refund due to an overpayment of tax withheld you must also attach Form RPD 41373 Applica tion for Refund of Tax Withheld From Pass through Entities an estate or trust that does not distribute income to ben eficiaries; Annual Withholding of Net Income From a Pass Through Entity Detail Report reporting the details for all recipients that it distributes taxable New Mexico net income If the income distributed is not taxable to the recipient as in the case of some grantor trusts including living trusts the distributed income is not included on this report Annual Withholding of Net Income From a Pass Through Entity Detail Report The PTE must report for all owners and mark the indicator box on Form RPD 41367 if the PTE authorized agent has signed and dated the report Enter the Authorized signature Date be submitted to the Department Beginning of tax year Last day of tax year Extended Due Date Original Due Date PTE s tax year if other than the full 2012 calendar year Due date of the PTE s federal return MM DD CCYY MM DD CCYY Check if amended Check if outside the U S Check one: FEIN SSN YES Check if outside the U S Check one: FEIN SSN YES Check if outside the U S Check one: FEIN SSN YES Check if outside the U S Check one: FEIN SSN YES Check if outside the U S Check one: FEIN SSN YES Check if outside the U S Check one: FEIN SSN YES Check the type of New Mexico income tax return that the pass through entity files for the current tax year PTE S Corp FID 1 CIT 1 Other Column 1 Enter the name and address of each owner of Column 2 Enter the owner s federal identification number and mark the box indicating that the number is a federal employer identification number (FEIN) or a social security number (SSN) Column 3 Enter the owner s share of the allocable net income of the PTE If the PTE is a trust or estate enter the recipient s taxable distribution of New Mexico net income The total of column 3 for all pages must equal Line 1 Total New Mexico net income Column 4 Enter the owner s share of tax withheld for the tax year The owner s share includeds both the withholding tax that the PTE paid using this form (Form RPD 41367) and amounts paid on Form RPD 41355 Pass through Entity Withholding Tax Return Payment web application on our web site The total of the owner s share of tax withheld for the tax year column 4 from all pages must equal the amount reported on line 1 of this form When a PTE has tax withheld from the oil and gas proceeds received or the allocable net income of another PTE the PTE may pass the tax withheld to its owners by issuing the owner a 1099 Misc pro forma 1099 Misc or New Mexico Form RPD 41359 Annual Statement of Pass Through Entity Withholding If the owner has both withholding tax passed from the PTE and tax withheld and paid by the PTE the PTE may combine the withholding tax on the information reports filed The withholding rate is 4 9% Column 5 Indicate if the PTE has a valid signed Form RPD 41353 Owner s or Remittee s Agreement to Pay Withholding on Behalf of a Pass through Entity or Remitter on file by marking the YES box The agreement must not be revoked Form RPD 41353 is required documentation showing that Complete line 2 for each page entering the sum of column 4 for the page Also complete line 3 on the first page show ing the total tax withheld by the PTE reported in column 4 from all pages corporation for federal income tax purposes for the tax year a shareholder of an S corporation or of a corporation other determine the amount due on this report determines that a non resident owner is not paying New disregarded entity the agreement or the residency statement Documentation is on file showing that the owner is a federally recognized Indian nation tribe or pueblo or any agency instrumentality or political subdivision thereof; Documentation is on file showing that the owner is the United States New Mexico or any agency instrumentality or political subdivision of either; Documentation showing the PTE s inability to make pay ment of withholding from net income for the tax year 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 owner during the tax year in which case the PTE is liable for payment of the withholding amount due up to the extent e mail address of the PTE or the PTE s authorized agent Enter the name of the PTE the federal identification number (FEIN) and the total New Mexico net income for the calendar year of this return If the PTE is a trust or an estate enter the total New Mexico net income distributed that is taxable entered into an agreement with the owner that the owner Estates and Trusts: An estate or trust that distributes New Mexico net income that is taxable to its recipients is a pass through entity (PTE) and subject to withholding pursuant to the Oil and Gas Proceeds and Pass Through Entity Withholding Tax Act (Sections 7 3A 1 through 7 3A 9 NMSA 1978) As a PTE the trust or estate is also required to withhold from the non resident recipient s share of the trust or estates taxable New Mexico net income The estate or trust must file and pay the tax withheld on the annual report Form RPD 41367 extension due date 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 File Electronically: If a PTE has more than 50 payees who receive New Mexico net income the PTE is required to electronically file Form RPD 41367 through the Department s web site See Where to File later in these instructions If the PTE has more than 50 New Mexico payees and is unable to file electronically because a hardship exists and there is no reasonable access to the Internet in the taxpayer s com munity the PTE may request Department approval to file by paper The PTE may request approval by filing Form RPD 41350 E File Exception Request Form The request must be received by the Department at least 30 days before the taxpayer s electronic report is due files and pays the tax due on the allocable net income of the PTE Form RPD 41367 is due even if no tax was withheld for purposes of the film production tax credit Form PTE or on this Form RPD 41367 Annual Withholding of Net Income From a Pass Through Entity Detail Report from future net income of the owner If the PTE did not with granted exemption from the federal income tax by the United States Commissioner of Internal Revenue as an organization described in Section 501(c)(3) of the Internal Revenue Code including a copy of the owner s federal Form W 9 or a copy of the determination letter from the IRS The obligation to deduct and withhold from payments to organizations identified in this paragraph applies if that income constitutes unrelated income hold because the PTE and owner entered into an agreement I declare I have examined this form and to the best of my knowledge and belief it is true correct and complete If a corporation a signed Form RPD 41354 Declara tion of Principal Place of Business or Residence in New Mexico is on file that the corporation s principal 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 incorporation in New Mexico or information from the Public Regulation Commission web site indicating 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 If a PTE has had tax withheld from the oil and gas proceeds received or the allocable net income of another PTE the PTE may pass the tax withheld to its owners by issuing the owner a 1099 Misc pro forma 1099 Misc or New Mexico Form RPD 41359 Annual Statement of Pass Through Entity Withhold ing Do not include on this line any tax that was withheld and paid by the PTE who files this report The withholding tax passed to the owners must be subtracted from the total owner s share of withholding tax to determine the amount of If an individual signed Form RPD 41354 Declaration of Principal Place of Business or Residence in New Mexico is on file that the individual is a resident of New Mexico and declaring the physical location of the indiviudal s abode in New Mexico; If granted an exemption to electronically file Form RPD 41367 or if you have 50 or fewer New Mexico payees and choose to file this form in paper format submit this completed form to: New Mexico Taxation and Revenue Depar tment P O Box 25127 Santa Fe NM 87504 5127 If the due date of the return falls on a Saturday Sunday or state or national legal holiday the return is timely if the post mark bears the date of the next business day If the owner s address on Form 1099 Misc pro forma 1099 Misc or RPD 41359 Annual Statement of Pass Through Entity Withholding is a New Mexico address; If the PTE is filing for a tax year that is not a full calendar year enter the first day and the last day of the tax year The tax year for the New Mexico return must be the same as the tax year for the federal return Enter the due date of the PTE s federal income tax return If no federal income tax return for the tax year is due enter 105 days after the end of the entity s tax year If an extension was granted enter also the 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 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 If your report period begins on or after: the effective rate is: Jan 1 2011 4 90% IMPORTANT DEFINITIONS in these instructions Income and Franchise Tax Act with respect to the owner s share of the net New Mexico income A PTE may use federal Forms 1099 Misc pro forma 1099 Misc or Form RPD 41359 Annual Statement of Pass Through Entity Withholding to report to the owners the allocable net income and the New Mexico tax withheld These forms must be provided to the owner by February 15th of the year following the year for income reported in the year INSTRUCTIONS FOR COMPLETING THE FORM is outside the U S A trust or estate enters the name and is required to compare the tax information received from the Line 2 Total withholdingIf more space is needed print the Supplemental Form directly from the website and attach the additional supplemental forms 2 Line 3 Total withholding from all pages Line 2 Total withholding this page File this report on line using the Department s web site at https://efile state nm us If you cannot electronically file see the instructions For assistance completing this return call (505) 827 0825 2 3 Line 4 Withholding tax passed to owners Line 8 Interest Line 7 Penalty Line 6 Subtotal Subtract the sum of lines 4 and 5 from line 3 (May not be less than zero) Line 9 Total due Add lines 6 7 and 8 8 7 6 9 4 Line 5 Tax paid on Form RPD 41355 5 Line 4 Enter the amount of Withholding tax passed to owners Line 5 Enter the payments made using Form RPD 41355 Quarterly Pass Through Entity Withholding Tax Return or the PTW R Pass through Entity Withholding Tax Return Pay ment web application on the Department s web site Payments made using these payment methods must be subtracted to Line 6 Subtract the sum of lines 4 and 5 from line 3 This is the amount of withholding tax due on this report The amount entered should not fall below zero If it does check your figures or see the instructions for amending this report Line 7: Add penalty if the entity fails to file timely or to pay the amount on line 6 when due Calculate the penalty by multiply ing the unpaid amount on line 6 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 Line 8: 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 9: Add lines 6 7 and 8 to compute the total due Mark the box indicating the type of New Mexico income tax return that the pass through entity will file for the tax year If no New Mexico income tax return is required to be filed check the Other box and indicate the reason no New Mexico income tax return is required For example a grantor trust that is not required to file a New Mexico FID 1 return marks the Other box and enters Grantor trust on the line provided for an explanation means a performing artist to whom payments are due from Mexico income tax on the allocable net income of the PTE the Department will notify the PTE that the PTE must withhold Mexico net income must withhold and deduct net income the Department may request that the PTE show reasonable cause for not withholding (see Reasonable Cause for Not Withholding in these instructions) If the Department New Mexico Taxation and Revenue Department NOTE: A disregarded entity is NOT a PTE for the purposes of of the cash payment made during the year; Other Reporting Requirements: PTEs are also required to provide sufficient information to enable the owners to comply Owner s name street address city state ZIP code Column 2 Owner s SSN/FEIN Column 3 Owner s share of allocable net income Column 4 Owner s share of withholding tax Col 5 RPD 41353 on file owner s share of the allocable net income of the PTE Page 1 of 4 Page 2 of 4 Page 3 of 4 Page 4 of 4 Page of Pass through entities should be aware that the Department Pass through entity s name PTE s FEIN Line 1 Total New Mexico net income Pass Through Entity Withholding Tax Rate Table pass through entity withholding The PTE can accept from a performing artist for purposes of the film production tax credit Personal Service Businesses: A PTE that is a personal service business cannot enter into an agreement with its owners A personal services business means a business organization that receives payments for the services of a Phone number E mail address Please note that the Department must have both the PTE s income tax return and Form RPD 41367 filed before the refund can be verified PTE with the records of the owners and if the Department determines that the owner is not paying the proper tax on PTW D pursuant to Section 7 3A 3(G) NMSA 1978 the agreement must be revoked and the PTE will be held responsible for future tax required to be withheld from the owner Reasonable Cause for Not Withholding Signature:The form is not complete until the PTE or the PTE s tax credit to determine how the tax credit is passed from the PTE to its owners tax due on this report Tax due x the daily interest rate for the quarter x number of days late = interest due than an S corporation that is not taxed as a corporation for that amount in determining the amount the payee PTE that receives payments for the services of a performing artist that the corporation is a New Mexico corporation in good standing and its address The amount of tax withheld from the owner s net income may be reduced but not below zero by the amount re quired to be withheld for oil and gas proceeds The formula for computing interest is: the PTE and owner have entered into an agreement that the non resident owner agrees to pay the New Mexico tax on the the PTE If an individual enter the first middle initial and last name of the owner Mark the box if the address of an owner The PTE is required to pass tax credits that they have been approved for to the owners Each owner must apply the credit against its income tax liability A PTE that passes tax credit to its owners must refer the forms applicable to the specific to New Mexico in accordance with the Uniform Division of Income for Tax Purposes Act To obtain specific information regarding electronically filing log in to the web file page on the Department s web site at https://efile state nm us to support a valid reason to not withhold to the first page of this form Reproducing from a photocopy this page reduces the readability of the bar code on scanning equipment to the recipient When to File: Form RPD 41367 Annual Withholding of Net Income From a Pass Through Entity Detail Report is due on or before the due date of the entity s federal return for the taxable year If a pass through entity is not required to file a federal income tax return for the tax year the entity must file Form RPD 41367 with the Department no later than 105 days after the end of its taxable year Where to File: File online using the Department s web site at https://efile state nm us First time e filers will need to create a login name and password If you wish to pay the tax to be remitted to the Department prior to the availability of the web application for the annual Form RPD 41367 you may make the payment electronically using the RPD 41355 Pass through Entity Withholding Tax Return Payment web application which the statement is made These forms do not need to Who Must File: A pass through entity (PTE) who is subject to withholding tax from its owners partners members or beneficiaries (owners) net income according to the Oil and Gas Proceeds and Pass Through Entity Withholding Tax Act (Sections 7 3A 1 through 7 3A 9 NMSA 1978) must annually report each owner s share of net income allocable to New Mexico and remit* the New Mexico tax withheld for each remittee The required annual report is Form RPD 41367 with the provisions of the Income Tax Act and the Corporate