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RPD-41367 12

New Mexico Taxation and Revenue Department

Rev. 12/04/2012

2012 Annual Withholding of Net Income From a Pass-Through Entity Detail Report

Instructions

Page 4 of 4

granted exemption from the federal income tax by the

$100, no withholding is required.

United States Commissioner of Internal Revenue as an

2. If the owner is an insurance company and falls under

organization described in Section 501(c)(3) of the Internal

the provisions of Section 59A-6-6 NMSA 1978, no with-

Revenue Code, including a copy of the owner’s federal

holding is required.

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

3. At the option of a PTE, a PTE may agree with the owner

IRS. The obligation to deduct and withhold from payments

that the owner pay the amount that the PTE would have

to organizations identified in this paragraph applies if that

been required to withhold and remit to the Department

income constitutes unrelated income.

on behalf of the owner pursuant to the Oil and Gas Pro-

6. Documentation is on file showing that the owner is the

ceeds and Pass-Through Entity Withholding Tax Act. The

United States, New Mexico or any agency, instrumentality

owner remits the tax required to be withheld using a form

or political subdivision of either;

of payment such as estimated payments or withholding.

The owner can also satisfy the terms of the agreement by

7. Documentation is on file showing that the owner is a

filing its New Mexico income tax return and paying the tax

federally recognized Indian nation, tribe or pueblo or any

due. The PTE must have a completed Form RPD-41353,

agency, instrumentality or political subdivision thereof;

8. Documentation showing the PTE’s inability to make pay-

Owner’s or Remittee’s Agreement to Pay Withholding on

Behalf of a Pass-Through Entity or Remitter, on file at the

ment of withholding from net income for the tax year due

time it files its return for the tax year to which the agree-

to non-availability of cash or due to contracts and other

ment pertains. If the Department notifies the PTE that

binding written covenants with unrelated third parties,

the owner has failed to remit the required payment, the

unless cash payments have been made to any owner

agreement is no longer acceptable by the Department as

during the tax year, in which case the PTE is liable for

reasonable cause for failure to withhold. The PTE is not

payment of the withholding amount due up to the extent

responsible for withholding on the net income earned in

of the cash payment made during the year;

periods that ended prior to the Department’s notification.

9. With respect to tax years 2014 through 2018, the PTE

4. The owner maintains its place of business or residence

has elected pursuant to 26 USC 108(i) to defer income

in New Mexico:

from the discharge of indebtedness in conjunction with

•

If the owner’s address on Form 1099-Misc, pro forma

the reacquisition after December 31, 2008 and before

1099-Misc or RPD-41359, Annual Statement of Pass-

January 1, 2011 of an applicable debt instrument for the

Through Entity Withholding, is a New Mexico address;

period 2014 through 2018 and the entity has insufficient

•

If an individual signed Form RPD-41354, Declaration

cash to remit the withholding amount due on the deferred

income reported in the year.

of Principal Place of Business or Residence in New

Mexico, is on file that the individual is a resident of

NOTE: A disregarded entity is NOT a PTE for the purposes of

New Mexico and declaring the physical location of

pass-through entity withholding. The PTE can accept from a

the indiviudal’s abode in New Mexico;

disregarded entity the agreement or the residency statement

•

If a corporation, a signed Form RPD-41354, Declara-

to support a valid reason to not withhold.

tion of Principal Place of Business or Residence in

New Mexico, is on file that the corporation’s principal

If you believe that you have a valid reason for not withhold-

place of business is in New Mexico, or

ing from an owner, other than the reasons listed above, you

•

If a corporation incorporated in New Mexico, the

must obtain approval from the Secretary before you file your

corporation’s incorporation papers are on file, with

return. Please include with your request detailed information

sufficient portions of those papers to demonstrate

to support an alternative reasonable cause for not withhold-

incorporation in New Mexico, or information from the

ing. To request the Secretary’s approval, submit a written

Public Regulation Commission web site indicating

request to the Albuquerque District Office at New Mexico

that the corporation is a New Mexico corporation in

Taxation and Revenue Department, Corporate Income Tax

good standing and its address.

Audit Supervisor, P.O. Box 8485, Albuquerque, NM 87198-

5. Documentation is on file showing that the owner is

8485. For assistance call 505-841-6221.

Pass-Through Entity Withholding Tax Rate Table

If your report period begins on or after:

the effective rate is:

Jan. 1, 2011 ........................................................................................... 4.90%

Form Rpd-41367 12 - Annual Withholding Of Net Income From A Pass-Through Entity Detail Report - New Mexico Taxation And Revenue Department Page 6

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