Form Rpd-41284 - Quarterly Oil And Gas Proceeds Withholding Tax Return

STATE OF NEW MEXICO - TAXATION AND REVENUE DEPARTMENT

RPD-41284

Rev. 06/13/2011

Quarterly Oil and Gas Proceeds Withholding Tax Return Instructions

Page 2 of 3

withheld using Form RPD-41357, Oil and Gas Proceeds

further distribution by the remittee as a remitter to working

Remittee's Quarterly Tax Payment,

or another form of

interest owners, royalty interest owners, overriding royalty

payments such as estimated payments,

and on the due

interest owners and/or production payment interest own-

date of this return. The remitter must have a completed

ers.

Form RPD-41353, Owner's or Remittee's Agreement to

INSTRUCTIONS FOR COMPLETING THIS FORM: Complete

Pay Withholding on Behalf of a Pass-Through Entity or

all information requested. Round money amounts in lines

Remitter, on file at the time it files its annual reporting

1 through 4 to the nearest whole dollar; for example; enter

requirements for the tax year to which the agreement

$10.49 as $10 and $10.50 as $11.

pertains. If the Department notifies the remitter that the

Remitter FEIN or SSN: Enter the remitter's federal employer

remittee has failed to remit the required payment, the

identification number (FEIN) or social security number (SSN)

agreement is no longer acceptable by the Department as

and mark the box indicating the type of identification number

reasonable cause for failure to withhold. The remitter is

entered.

not responsible for withholding on oil and gas proceeds

paid to the remittee prior to the Department’s notification.

Remitter name: Enter the name and mailing address of the

3. The remittee maintains its place of business or residence

remitter. Mark the box if the address is outside the U.S..

in New Mexico:

Quarterly report period: Enter a quarterly report period that

•

If a corporation, a signed and notarized Form RPD-

is based on a calendar quarter. Enter the month, day and year

41354, Declaration of Principal Place of Business

of the first and last day of the calendar quarter in which the

or Residence in New Mexico, is on file that the

tax was withheld. For example, if filing for the first quarter of

corporation’s principal place of business is in New

2011, enter 01-01-11 to 03-31-11 in the space provided.

Mexico, or

Line 1: Enter the total gross New Mexico oil and gas proceeds

•

If a corporation incorporated in New Mexico, the

paid during the report period regardless of production date.

corporation's incorporation papers are on file, with

sufficient portions of those papers to demonstrate

Line 2: Enter the gross New Mexico oil and gas proceeds paid

incorporation in New Mexico, or information from

but not withheld because those proceeds qualified for one

the Public Regulation Commission web site indicat-

of the exceptions or adjustments listed in these instructions.

ing that the corporation is a New Mexico corpora-

When an adjustment occurs, include on this line, the gross oil

tion in good standing and its address, or

and gas proceeds from the eligible transaction to which the

•

If an individual, a signed and notarized Form RPD-

tax withheld was computed, thereby excluding that amount

41354, Declaration of Principal Place of Business

from oil and gas proceeds subject to withholding in line 3. See

or Residence in New Mexico, is on file that the indi-

"Adjustments to the amount withheld:" on the previous page.

vidual is a resident of New Mexico and declaring the

Line 3: Subtract line 2 from line 1 and enter the amount on

physical location of the individual's abode in New

line 3. This is the oil and gas proceeds subject to withholding.

Mexico.

4. Documentation is on file showing that the remittee is

Line 4: Enter the amount of tax withheld from the oil and gas

granted exemption from the federal income tax by the

proceeds subject to withholding on line 3. Calculate withhold-

United States Commissioner of Internal Revenue as an

ing by multiplying the gross amount of oil and gas proceeds

organization described in Section 501(c)(3) of the Inter-

subject to withholding (line 3) by 0.049 or the current rate

nal Revenue Code, including a copy of the remittee’s

according to the Oil and Gas Proceeds Withholding Tax Rate

federal Form W-9, or a copy of the determination letter

Table in these instructions. The rate of withholding is set by

from the IRS.

Department directive; but may not exceed the higher of the

5. Documentation is on file showing that the remittee is the

maximum bracket rate set by Section 7-2-7 NMSA 1978 for

United States, New Mexico or any agency, instrumental-

the tax year or set by Section 7-2A-5 NMSA 1978 for the tax

ity or political subdivision of either.

year, and provided that remitters are given ninety days' notice

6. Documentation is on file showing that the remittee is a

of a change in the rate.

federally recognized Indian nation, tribe or pueblo or any

Line 5: Add penalty if the entity fails to file timely or to pay the

agency, instrumentality or political subdivision thereof.

amount on line 4 when due. Calculate the penalty by multiply-

Documentation is on file showing that the remitter's pay-

ing the unpaid amount on line 4 by 2%, then by the number

ment to the remittee is subject to further distribution by the

of months or partial months for which the return or payment

remittee as a remitter to working interest owners, royalty

is late, not to exceed 20% of the tax due. The penalty may

interest owners, overriding royalty interest owners and/

not be less than $5.00.

or production payment interest owners. Acceptable proof

Line 6: Interest accrues daily on the unpaid principal of tax

includes --but is not limited to-- written notification from a

due, and can change on a quarterly basis. The effective an-

remittee or internal documentation such as signed divi-

nual and daily interest rates are posted on the Department's

sion orders demonstrating that the payment is subject to

Form Rpd-41284 - Quarterly Oil And Gas Proceeds Withholding Tax Return - 2011 Page 3

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