Form Rpd 41367 – Fill Out and Use This PDF

Withholding Tax

Line 2. Total withholding from column 4 on all Supplemental Pages. ..........................................

2

Amount Due

Line 7. Tax Due. If line 2 is greater than line 6, enter the difference .....

Line 8. Penalty (see the instructions) ....................................................

Line 9. Interest (see the instructions) ....................................................

7

8

9

Line 10. Total due. Add lines 7, 8, and 9.......................................................................................

10

Overpayment

Line 11. Overpayment. If line 6 is greater than line 2, enter the difference here ..........................

You must attach Form RPD-41373 to claim a refund of an overpayment.

11

Name of pass-through entity (PTE)

PTE’s FEIN

Page ______ of _______

Do not file RPD-41353 with the Department. (see Instructions)

RPD-41367 Rev. 08/19/2019

New Mexico Taxation and Revenue Department

2019 Pass-Through Entity

Withholding Detail (PTW-D) Report Instructions

ANSWERS TO FREQUENTLY ASKED QUESTIONS

1.If no tax is withheld for its owners, does a pass-through entity (PTE) have to file a PTW-D?

The PTE must file a PTW-D reporting all resident and non-resident owners who received New Mexico allocated net income, even when no tax has been withheld. Do not include owners who did not receive New Mexico allocated net income.

2.What is the withholding tax rate?

The effective rate is 4.9%. The rate table shows the current tax rate. When the rate changes, the rate table reflects the new rate. The Department is required to give remitters a 90-day notice of a change in the rate.

Pass-Through Entity Withholding Tax Rate Table

If your report period begins on or after

January 1, 2011, the effective rate is 4.9%.

3.If I have an overpayment amount on line 11 of the PTW-D, why must I file RPD-41373, Application for Refund of Tax Withheld From Pass-Through Entities, with the PTW-D to get a refund?

According to Section 7-1-26 NMSA 1978, the PTW-D is not a complete request for refund. Form RPD-41373 completes the requirements for a request for a refund pursuant to that section.

WHO MUST FILE

Annually, a PTE subject to withholding tax from the allocable net income of its owners, partners, or members (owners), 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 file a PTW-D. On the PTW-D, the PTE must:

●Report each owner’s share of net income allocable to New Mexico.

●List only payees who have New Mexico net allocable income and losses.

●Remit the New Mexico tax withheld for each non-resident owner.

The PTE reports all resident and non-resident owners on the PTW-D, even when no tax has been withheld.

NOTE: 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.

Except for a PTE that is a personal services business, if the PTE entered into an agreement with the owner for the owner to file and pay tax due on the owner’s share of

allocable net income of the PTE, the PTE enters 2 in the

Reason Code box in Supplemental Page, column 5.

Personal Services Business

A personal services business is a business organization that receives payments for the services of a performing artist for purposes of the film production tax credit.

NOTE: A PTE that is a personal services business cannot enter into an agreement with its owners using RPD-41353,

Owner’s or Remittee’s Agreement to Pay Withholding On Behalf of a Pass-Through Entity or Remitter.

Estates and Trusts

An estate or trust that distributes New Mexico net income taxable to its recipients is a 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 estate or trust is also required to withhold from the non-resident recipient’s share of the trust or estate’s taxable New Mexico net income.

The estate or trust must file and pay the tax withheld using Fiduciary Pass-Through Withholding Detail (FID-D) Report.* It must report the details for all recipients to whom it distributes taxable New Mexico net income. If the distributed income is not taxable to the recipient, as in the case of some grantor trusts including living trusts, the distributed income is not included on Form FID-D. See the FID-D instructions for more details.

*For tax years 2011 and 2012, estates and trusts that are PTEs were required to file RPD-41367 (now called PTW-D) instead of FID-D.

WHEN TO FILE

The PTW-D is due on or before the due date of the entity’s federal return for the tax year. If a PTE is not required to file a federal income tax return for the tax year, the entity must file the PTW-D no later than 105 days after the end of its taxable year.

Timely Postmark

If the due date of the return falls on a Saturday, Sunday, or a state or national legal holiday, the return is timely if the postmark bears the date of the next business day.

Extensions

If the PTE obtains a federal automatic extension or a New Mexico extension for its return, the extension also applies to filing the PTW-D. An extension waives penalty through the extension due date, but does not waive interest. On page 1 of the PTW-D, you are required to complete the extended due date field.

RPD-41367 Rev. 08/19/2019

New Mexico Taxation and Revenue Department

2019 Pass-Through Entity

Withholding Detail (PTW-D) Report Instructions

HOW TO FILE AND PAY

New Mexico approves software you can use to e-file. For the list of approved software, do the following:

1.Click ww.tax.newmexico.gov/forms-publications.aspx.

2.Click the search icon and search for Approved Software for Online Filing.

Requirements for E-Filing and Paper Filing

●E-filing is required for PTEs with 51 or more owners who receive New Mexico net income. Do this by bulk filing an XML file as described later in this section.

●E-filing is acceptable for PTEs with 50 or fewer New Mexico payees. Do this by importing an Excel file as described later in this section.

●Paper filing is only acceptable for PTEs with 50 or fewer New Mexico payees.

IMPORTANT: The Department rejects PTW-Ds filed on paper when a PTE is required to e-file. If a PTE is required to but is unable to e-file due to a hardship, the PTE may request Department approval to file on paper by filing Form RPD-41350, E-File Exception Request Form. The

Department must receive the request at least 30 days before the taxpayer’s e-filed report is due.

E-Filing

E-file at no cost through TAP at https://tap.state.nm.us. To set up an account, under CREATE AN ACCOUNT, click

Sign Up Now.

To learn more about setting up your account, watch these videos:

1.On TAP HOME, click How-to Videos and then click

Create a Logon.

2.To add your PTW Remitter account, click Adding Access to Accounts.

Bulk Filing

Bulk filing lets you upload multiple returns and payments into TAP for processing. The primary users of bulk filing are tax preparers who file for their clients. To use bulk filing, do the following:

1.Click https://tap.state.nm.us and log in.

2.Under I WANT TO, click Upload XML Bulk File to display the Instructions page.

3.Read the instructions, click Next, and then continue to complete the upload process.

To watch a video about bulk filing, do the following on TAP

HOME:

1.Under Menu, click How-to Videos.

2.On the left, click Bulk Filing in TAP.

For more information about bulk filing, do the following on

TAP HOME:

1.Under TAP HOME, click Frequently Asked

Questions.

2.In the first row of tabs, click Bulk and then click your question to see the answer.

Importing an Excel File

You can use an Excel template from the Department website to show owner information. To find and complete the template and then import an Excel file, do the following:

1.Under TAP HOME, click Frequently Asked

Questions.

2.In the first row of tabs, click Templates and then click next to Q4, How do I get the latest templates for importing PTW-D Owner information?

3.Complete the template and save this copy.

4.Log into your TAP account

5.Click PTW-R Account and then click File Return for the appropriate period.

6.In the bottom right corner of your TAP account, click the Import button and load the Excel template you completed and saved in step 3.

For more information about templates and importing Excel files, do the following:

1.On the TAP home page, click Frequently Asked Questions.

2.Click the Templates tab and then click a question about PTW-D owner information.

E-Paying

To e-pay tax due, follow these steps:

1.Click https://tap.state.nm.us.

2.Under WITHOUT LOGGING ON, click Make a

Payment, and then click Business.

3.From the drop-down box in Account Type, select

PTW Remitter.

Paper Filing

If the PTE has 50 or fewer New Mexico payees, you can file a paper PTW-D. Attach the report to your income tax return, if applicable, and mail the form and payment to:

New Mexico Taxation and Revenue Department P.O. Box 25127

Santa Fe, NM 87504-5127

RPD-41367 Rev. 08/19/2019

New Mexico Taxation and Revenue Department

2019 Pass-Through Entity

Withholding Detail (PTW-D) Report Instructions

Paying with a Check or Money Order

You can pay tax due by check or money order and a payment voucher. To pay tax due with a check or money order, follow these steps:

1.Use one of these vouchers, even when submitting the payment with your return:

♦PTW-PV for a regular payment

♦PTW-EXT for an extension payment (to avoid accrual of interest)

2.Mail the payment and the payment voucher to the address on the voucher.

When you provide a check as payment, you authorize the Department to use information from your check to make a one-time electronic fund transfer from your account. When the Department uses information on your check to make an electronic fund transfer, funds may be withdrawn from your account as soon as the same day.

PTW-D payments must be made separately. Do not combine this payment with a payment for any income tax return, including CIT, SCorp, FID, and PTE.

REFUNDS

If you request a refund due to an overpayment of tax withheld, you must file RPD-41373, Application for Refund

of Tax Withheld From Pass-through Entities.

NOTE: The Department requires you to file both the PTE’s income tax return and its PTW-D to verify a refund.

PTE WITHHOLDING REQUIREMENTS

PTEs are required to provide sufficient information to enable the owners to comply with the provisions of the Income Tax Act and the Corporate Income and Franchise Tax Act with respect to the owners’ share of the net New Mexico income.

Requirements for Sufficient Information

●For your owners to receive proper credit for withholding, you must issue one of these withholding statements to the owner:

♦RPD- 41359, Annual Statement Pass-Through Entity Withholding (preferred)

♦Form 1099-MISC or pro forma 1099-MISC

●A PTE must provide these statements to owners by February 15th of the year following the year for which the statement is made.

●PTEs do not submit to the Department statements they issue to owners. The filed PTW-D provides the required information from the statements.

IMPORTANT: The Department does not accept Schedule K-1 or its equivalent to substantiate income tax withheld by the PTE. Do not submit them with your PTW-D or return.

VERIFICATION OF INCOME TAX INFORMATION

The Department is required to compare the tax information received from a PTE with the records of the owners who file returns with New Mexico.

●If the Department determines that an owner is not paying the proper tax on net income, the Department may request the PTE to show reasonable cause for not withholding.

●If a PTE and an owner entered into tax agreement RPD-41353, Owner's or Remittee's Agreement To Pay

Withholding On Behalf of a Pass-Through Entity or Remitter, and the Department determines the owner has not paid income taxes, upon the Department's notification to the PTE, the Department revokes the agreement, hereby obligating the PTE to withhold and remit all future income tax on behalf of the owner.

IMPORTANT: If a PTE and non-resident owner entered into an agreement using RPD-41353, Owner's or

Remittee's Agreement To Pay Withholding On Behalf of a

Pass-Through Entity or Remitter, the remitter or PTE must revoke the agreement and then withhold and remit with respect to future payments to the remittee or owner.

TO GET HELP

If you have questions, call (505) 827-0825 or toll free

(866)809-2335. You can also send questions to CIT.TaxReturnHelp@state.nm.us.

INSTRUCTIONS TO COMPLETE THE REPORT

This is the sequence of items to complete:

1.Line 1, at the top right after Name of PTE and PTE's

FEIN (page 1)

2.Supplemental Page (page 2 plus additional pages if the PTE has more than 8 owners)

3.Lines 2 to 11 (page 1)

4.Signature and contact information (page 1)

Tax Year and Due Dates

Tax Year. 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. Otherwise, leave blank.

NOTE: The tax year for the New Mexico return must be the same as the tax year for the PTE's federal return.

Due Date Of Federal Return. Enter the due date of the

PTE’s federal income tax return. If no federal income tax