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come Tax Return.NOTE: Entities that file a 2016 S-Corp,New Mexico Sub-Chapter S CorporateIncome and Franchise Tax Return, donot also file a 2016 PTE, New MexicoInformation Return for Pass-ThroughEntities. NOTE: An entity that files theS-Corp return may be required to fileForm RPD-41367, PTW Detail ReportFor Annual Withholding of Net IncomeFrom a Pass-Through Entity.If You File Federal Form 1120Every entity having income from activities or sources within New Mexico thatis required to file a federal corporationincome tax return or equivalent returnmust file a New Mexico CIT-1 return.These include all corporations organized under the laws of the State of NewMexico and corporations exempt fromfederal income tax under the InternalRevenue Code which have unrelatedbusiness income.If You File Federal Form 1120SCorporations and Limited LiabilityCompanies (LLCs) electing to be taxedas S corporations for federal incometax purposes must file a New MexicoS Corporate Income and FranchiseTax Return (S-Corp) if the entity isregistered to do business in the state,transacts business in, into or from thestate, or derives any income from property or employment within the state.Each owner of the partnership, limitedliability corporation, S corporation orsimilar business association mustinclude his or her share of the passthrough entity income on the NewMexico personal or corporate incometax return.If You File Federal Form 1120-REITA Real Estate Investment Trust (REIT),which does business in New Mexicoand files a federal Form 1120-REIT,must file a New Mexico S-Corp return.If You File Federal Form 1041Estates and trusts are subject to NewMexico personal income tax. The fiduciary for an estate or trust must file aFID-1 return.Each beneficiary of an estate or trustmust include his or her share of theestate or trust income on the NewMexico personal or corporate incometax return even if the estate or trust wasnot required to file FID-1.may also request forms by calling (505)827-2206 in Santa Fe or toll free (866)809-2335, select option 4.If You File Federal Form 1040, 1040Aor 1040EZIf you are a New Mexico resident, youmust file a New Mexico return if youmeet any of the following conditions: You have to file a federal return. You want to claim a refund of anyNew Mexico state income tax withheld from your pay. You want to claim any New Mexicorebates or credits.IMPORTANT: File Returns on Approved State Forms.Always submit 2016 S-Corp Income& Francise Tax Returns on officialstate forms provided by or approvedby the Department. Never submit areturn with a form that has been photocopied or photoshopped as it willnot be accepted.DEFINITION OF APASS-THROUGH ENTITY“Pass-through entity” means a personalservices business or any other businessassociation other than: A sole proprietorship; An estate or trust that does notdistribute income to beneficiaries; A corporation, limited liability company, partnership or other entitynot a sole proprietorship taxed asa corporation for federal income taxpurposes for the tax year; A partnership that is organized as aninvestment partnership in which thepartner’s income is derived solelyfrom interest, dividends and salesof securities; A single member limited liabilitycompany that is treated as a disregarded entity for federal income taxpurposes, or A publicly traded partnership asdefined in Subsection (b) of Section7704 of the Internal Revenue Code.New Mexico’s law says every personwho has income from New Mexicosources and who is required to filea federal income tax return must filea personal income tax return in NewMexico. This includes non-residentswho have income from wages, rents,royalties, businesses, estates.everyNew Mexico source. Even foreign nationals and persons who reside in statesthat do not have income taxes must filehere when they have a federal filingrequirement and have income fromany New Mexico source whatsoever.A single-owner LLC or similar organization doing business in New Mexico whois required to or elects to file a federalForm 1040 Schedule C instead of afederal corporate income tax return ora federal pass-through entity return,must file a New Mexico PIT-1 return.No franchise tax is due.A non-resident owner's and remittee'srequirement to file a New Mexicopersonal income tax return is metwhen the PTE or remitter withholdsfrom oil and gas proceeds and/orpass-through entity withholding andthe owner or remittee has no otherincome from New Mexico sources.Obtaining FormsAll New Mexico Taxation and RevenueDepartment forms, instructions andinformation brochures are available onthe Department’s Internet home page.Our address is: www.tax.newmexico.gov. Forms are also available at anyNew Mexico Taxation and RevenueDepartment district offices listed at thebeginning of these instructions. You“Personal Services Business” meansa business organization that receivespayments for the services of a performing artist for purposes of the filmproduction tax credit.An estate or trust that distributes income to beneficiaries is also a passthrough entity, but files a FID-1 returninstead of a PTE return.WITHHOLDING AND ADDITIONALREPORTING REQUIREMENTSFOR S CORPORATIONS WHO AREPASS-THROUGH ENTITIESA pass-through entity (PTE) who issubject to withholding tax from itsS-Corp - 4 -www.tax.newmexico.gov

non-resident owners, partners, members, or beneficiaries (owners) netincome according to the Oil and GasProceeds and Pass-Through EntityWithholding Tax Act, (Sections 7-3A-1through 7-3A-9 NMSA 1978) must annually report each owner’s share of netincome allocable to New Mexico andremit the New Mexico tax withheld foreach owner.The required annual report is FormRPD-41367, PTW Detail Report ForAnnual Withholding of Net IncomeFrom a Pass-Through Entity. The PTEmust report for all owners and exceptfor personal services businesses, markthe indicator box on Form RPD-41367,if the PTE entered into an agreementwith the owner that the owner filesand pays the tax due on the allocablenet income of the PTE. A PTE that isa personal service business cannotenter into an agreement with its owners. Form RPD-41367 is due, even ifno tax was withheld.File Electronically: If a PTE has 51 ormore payees who receive New Mexiconet income, the PTE is required to electronically file Form RPD-41367 throughthe Department’s website. If the PTEhas 51 or more New Mexico payees,and is unable to file electronically because a hardship exists, the PTE mayrequest Department approval to file bypaper. The PTE may request approvalby filing Form RPD-41350, E-File Exception Request Form. The requestmust be received by the Departmentat least 30 days before the taxpayer’selectronic report is due.If the PTE has 50 or fewer beneficiaries who receive New Mexico taxablenet income, the PTE may submit thecompleted RPD-41367 with the S-Corpreturn, or may file online.If a PTE has 51 or more payees, thePTE may file Form RPD-41367 throughthe Department's website or throughapproved third-party software. Whenrequired to file electronically, a paperfiled Form RPD-41367 will be rejectedby the Department.Certain exceptions to the requirementto withhold are allowed, and documentation must be maintained in the PTE'srecords to establish that the PTE hadreasonable cause for not withholding. Acomplete list of exceptions is providedin the instructions for Form RPD-41367.Form RPD-41367 is due on or beforethe due date of the entity’s federal returnfor the taxable year. If a pass-throughentity is not required to file a federalincome tax return for the tax year, theentity must file Form RPD-41367 withthe Department no later than 105 daysafter the end of its taxable year.If a federal automatic extension or aNew Mexico extension is obtained forthe PTE return, the extension also applies to the filing of Form RPD-41367.An extension waives penalty throughthe extension due date, but does notwaive interest.To make an extension payment, complete Form PTW-EXT, PTW DetailReport For Annual Withholding of NetIncome From a Pass-Through EntityExtension Payment Voucher, and mailthe payment and the voucher to theaddress on the voucher.Note: When you provide a check aspayment, you authorize the Department to use information from yourcheck to make a one-time electronicfund transfer from your account. Whenwe use information from your check tomake an electronic fund transfer, fundsmay be withdrawn from your accountas soon as the same day you makeyour payment.Other Reporting Requirements:PTEs are also required to providesufficient information to enable theowners to comply with the provisions ofthe Income Tax Act and the CorporateIncome and Franchise Tax Act, withrespect to the owner’s share of the netNew Mexico income. A PTE that usesa Schedule K-1 or equivalent form toreport to the owners, their share ofthe net income must also provide itsowners federal Forms 1099-Misc, proforma 1099-Misc, or Form RPD- 41359,to report to the owners the allocablenet income and the New Mexico taxwithheld. A Schedule K-1 may not beused by the owners to obtain credit forNew Mexico tax withheld.Forms 1099-Misc, pro forma 1099-Misc,or Form RPD-41359, Annual Statementof Pass-Through Entity Withholding,must be provided to the owner by February 15th of the year following the yearfor which the statement is made. ThePTE is not required to submit theseforms to the Department.REQUIRED ATTACHMENTSTO S-CORP RETURNNOTE: We can process your returnmore quickly if you submit your formsand attachments in the following sequence: S-Corp: New Mexico Sub-ChapterS Corporate Income and FranchiseTax Return. S-Corp-1: Income Taxable to Owners, computing the total of NewMexico taxable income applicableto all owners. S-Corp-A: New Mexico Apportionment Factors, if the entity hasincome from sources both insideand outside New Mexico. S-Corp-B: Allocated Non-businessIncome Taxable to Owners, if theentity has non-business taxableincome. S-Corp-C: Allocated and Apportioned Income Taxed to S Corporations, if the entity is an S corporationwith federal taxable income. S-Corp-CR, if applicable: TaxCredit Schedule, and required attachments. Federal Form 1120S, pages 1through 5. Other attachments as required byinstruction.NOTE: If any of these forms are omitted when required, the New Mexicoreturn is incomplete.If your return shows a balance due, complete S-Corp-PV, Payment Voucher,to include with your check or moneyorder.Other Forms or AttachmentsYou May Have to FileIf an S corporation is a pass-throughentity (PTE), and is not required toelectronically file Form RPD-41367S-Corp - 5 -www.tax.newmexico.gov

because it has 50 or fewer payees orhas obtained an exception for electronically filing Form RPD-41367 fromthe Department, submit the completedRPD-41367 with the S-Corp return. Ifpayment is due, also complete FormPTW-PV, PTW Detail Report For Annual Withholding of Net Income From aPass-Through Entity Payment Voucher,and submit the check and paymentvoucher attached to Form RPD-41367,to the address on the voucher.If a PTE has 51 or more payees whoreceive New Mexico net income, thePTE is required to electronically fileForm RPD-41367 through the Department’s website. Then, the report is filedseparately.A copy of the approved federal extension or the approved New Mexicoextension if the return is filed afterthe original due date of the return. Ifa copy is omitted, a late-filing penaltywill be assessed.All annual information returns andwithholding statements issued tothe S-Corp. Attach a copy of all annualinformation returns and withholdingstatements showing income and NewMexico income tax withheld, if reportingamounts withheld on lines 12 or 13 ofthe S-Corp return. Attach New Mexicoforms RPD-41285, Annual Statement ofWithholding of Oil and Gas Proceeds,RPD-41359, Annual Statement ofPass-Through Entity Withholding, orfederal Form 1099-Misc or equivalent.IMPORTANT: To receive proper creditfor withholding, all annual statementsmust be issued to the entity filing theNew Mexico income tax return. ASchedule K-1 or equivalent is not sufficient evidence of New Mexico incometax withheld.Federal Forms and Schedules. TheDepartment may require you to furnisha true and correct copy of your federaltax return and attachments.Schedule CC, Alternative TaxSchedule. Corporations that have no business activity in NewMexico other than sales; do not own or rent real estate inNew Mexico; and have annual gross sales in NewMexico of 100,000 or lessqualify to use the alternative tax forcomputing New Mexico corporateincome tax.Schedule CC must be attached to thereturn. See the instructions for line 4of the S-Corp return.To claim the renewable energy production tax credit, attach Form RPD41227, Renewable Energy ProductionTax Credit Claim Form, and enter theamount claimed on Schedule S-CorpCR.To claim Approved Film ProductionTax Credit, you must attach FormRPD- 41228, Film Production TaxCredit Claim Form, to the return. Report the amount claimed on ScheduleS-Corp-CR.See the line instructions for completing Schedule S-Corp-CR on page16 for a description of the attachments required to claim any of thebusiness-related credits listed. Formore information on business-relatedcredits, also see Publication FYI-106,Claiming Tax Credits for CRS Taxes &Business-Related Income.Publications and forms may bedownloaded from the TRD website atwww.tax.newmexico.gov. For assistance call (505) 827-0825 in SantaFe or toll free (866) 809-2335, select option 4; send us an e-mail atCIT.TaxReturnHelp@state.nm.us orvisit your local district office.PAYMENT OF THE S-CORPINCOME AND FRANCHISE TAXESMaking Payment Through theInternet. Using the Department website, you may pay by electronic checkat no charge. Your electronic checkauthorizes the Taxation and RevenueDepartment to debit your checking account in the amount and on the date youspecify. Directions are available on thewebsite. Pay your tax due online usingthe Department’s website athttps://tap.state.nm.us.You may also make tax paymentsusing any of these credit cards--Visa,MasterCard, American Express, or Discover Card--for your online payment. Aconvenience fee of 2.40% is applied forusing a credit card. The State of NewMexico uses this fee, calculated on thetransaction amount, to pay chargesfrom the credit card companies.Making Payment by Check. If youare making a payment towards yourS-Corp return you may pay the tax dueon the Department website, or by using S-Corp-PV, Tax Payment Voucher.If you are making a payment towardsyour Form RPD-41367, you may payby using PTW-PV, PTW Detail ReportFor Annual Withholding of Net IncomeFrom a Pass-Through Entity PaymentVoucher.Do not combine payments towardsthe S-Corp return and the Form RPD41367 on the same check or moneyorder. If you combine payments, it islikely they will not be credited to youraccount in the way you would wish.Whether you submit your return payment with or without your tax return,complete S-Corp-PV, Sub-Chapter SCorporate Income and Franchise TaxPayment Voucher. Write your federalemployer identification number (FEIN)and “2016 S-Corp” on your check ormoney order. Make the check or moneyorder payable to New Mexico Taxationand Revenue Department.Note: When you provide a check aspayment, you authorize the Departmentto use information from your check tomake a one-time electronic fund transfer from your account. When we useinformation from your check to makean electronic fund transfer, funds maybe withdrawn from your account assoon as the same day you make yourpayment.If making an extension payment,complete S-Corp-EXT, Sub-Chapter SCorporate Income and Franchise TaxExtension Payment Voucher. Writeyour federal employer identificationnumber (FEIN) and “2016 S-Corp-EXT”on the check or money order.If you make an estimated payment,complete S-Corp-ES, Sub-ChapterS-Corp - 6 -www.tax.newmexico.gov

S Corporate Income and FranchiseEstimated Tax Payment Voucher, andsubmit the payment voucher and yourpayment. Write your federal employeridentification number (FEIN) and “2016S-Corp-ES” on the check or moneyorder. Important: The S-Corp-ESand the check or money order mustindicate the correct tax year thatthe estimated payment should beapplied to.and interest.The Department receives a largeamount of payment vouchers WITHOUT the check or money order. Pleaseensure that you submit the paymentvoucher only when a payment isincluded.For S corporations that file on a fiscalyear basis, or file a short year return,the return is due on or before the 15thday of the third month following theclose of the tax year with payment oftaxes due.SUBMIT ONLY HIGH-QUALITYPRINTED, ORIGINAL FORMS TOTHE DEPARTMENT. Because theDepartment uses high-speed scannerswhen processing payment vouchers, aquality form helps ensure accuracy. Donot photocopy. The scanners can readonly one page size to process vouchers,therefore it is important that you cut onthe dotted line only. When printing thevoucher from the Internet or a softwareproduct, prevent resizing by settingthe printer's page scaling function tonone. If your payment voucher has ascanline (a very long row of numbers)within the bottom 1 and 1/2 inch of thevoucher, do not write in the area aroundthe scanline.NEW: If you file your 2016 S-Corpreturn and pay your tax online, yourfiling deadline is March 31, 2017, oron or before the last day of the thirdmonth following the end of the taxyear. To avoid penalty or interest, youmust electronically file your return andelectronically pay your tax due. Theextended due date applies to filingForm RPD-41367.Separate Payments of Tax Dueand Estimated Payments. DO NOTcombine payments for tax due on your2016 return and payments for your2017 estimated income tax liability onthe same check or money order. If youcombine payments, it is likely they willnot be credited to your account in theway you would wish.Mail payments and payment vouchers to:Taxation and Revenue DepartmentP. O. Box 25127Santa Fe, New Mexico 87504-5127A check that is not paid by the financialinstitution on which it is drawn does notconstitute payment. The entity will beassessed a minimum penalty of 20 inaddition to other applicable penaltiesDUE DATEFor S corporations that file on a calendar year basis, the 2016 New MexicoSub-Chapter S Corporate Income andFranchise Tax Return is due on orbefore March 15, 2017, together withpayment of taxes due.All other taxpayers must file by March15, 2017, or on or before the 15th dayof the third month following the end ofthe tax year.A New Mexico income tax return andtax payment are timely if the UnitedStates Post Office postmark on theenvelope bears a date on or beforethe due date. If the due date falls ona Saturday, Sunday, state or nationallegal holiday, the return is timely ifthe postmark bears the date of thenext business day. Delivery througha private delivery service is timely ifthe date recorded or marked by theprivate delivery service is on or beforethe due date.EXTENSION OF TIME TO FILETRD accepts an extension of timegranted by the Internal Revenue Service if a copy of the automatic or approved federal extension accompaniesthe S-Corp return at the time of filing.If the entity needs an extension of timeto file the New Mexico S-Corp returnbut has not obtained a federal exten-sion, or if additional time to file theNew Mexico return is needed beyondthe federal extension date, the entityshould request an extension by letter orby filing New Mexico Form RPD-41096,Extension of Time to File, on or beforethe due date of the return.If a federal automatic extension or aNew Mexico extension is obtained forthe S-Corp return, the extension also

S-Corp www.tax.newmexico.gov- 1 - STATE OF NEW MEXICO Taxation and Revenue Department P.O. Box 25127 Santa Fe, New Mexico 87504-5127 2016 New Mexico . Point (TAP). On the Department's web site at www.tax. newmexico.gov, click on Online Services and then File a Return. First-time filers will need to create a login name