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RPD-41367 11

New Mexico Taxation and Revenue Department

Rev. 8/9/2012

2011 Annual Withholding of Net Income

From a Pass-Through Entity Detail Report

Instructions - Page 3 of 3

partnership, joint venture, common trust fund, association, pool

•

If an individual, a signed Form RPD-41354, Declara-

or working agreement, or any other combination of persons

tion of Principal Place of Business or Residence in

treated as a partnership for federal income tax purposes.

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

of New Mexico and declaring the physical location of

Adjustments to the amount withheld:

the individual’s abode in New Mexico.

•

The amount of tax withheld from the owner’s net income

4. Documentation is on file showing that the owner is granted

may be reduced, but not below zero, by the amount re-

exemption from the federal income tax by the United States

quired to be withheld for oil and gas proceeds.

Commissioner of Internal Revenue as an organization

•

If a PTE has deducted and withheld an amount pursuant

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

to the Oil and Gas Proceeds and Pass-Through Entity

Code, including a copy of the owner’s federal Form W-9,

Withholding Tax Act, from the net income of an owner

or a copy of the determination letter from the IRS;

that is also a PTE, the payee PTE may take credit for that

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

amount in determining the amount the payee PTE must

United States, New Mexico or any agency, instrumentality

withhold and deduct.

or political subdivision of either;

Reasonable Cause for Not Withholding.

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

1. If the amount to be withheld from an owner’s share of net

federally recognized Indian nation, tribe or pueblo or any

income in any calendar quarter is less than $30.00, no

agency, instrumentality or political subdivision thereof;

withholding is required.

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

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

ment of withholding from net income for the quarter due

that the owner pay the amount that the PTE would have

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

been required to withhold and remit to the Department on

binding written covenants with unrelated third parties, un-

behalf of the owner pursuant to the Oil and Gas Proceeds

less cash payments have been made to any owner during

and Pass-Through Entity Withholding Tax Act. The pay-

the quarter, in which case the PTE is liable for payment of

ments by the owner may be remitted on Form RPD-41356,

the withholding amount due up to the extent of the cash

Pass-Through Entity Owner’s Quarterly Tax Payment,

payment made during the quarter;

and on the due date of this return, or by another form of

8. The PTE made a timely election for federal income tax

payment such as estimated payments. The owner can

purposes that changes the net income of a pass-through

also satisfy the terms of the agreement by filing its New

entity in a prior quarter is reasonable cause for failure to

Mexico income tax return and paying the tax due. The

withhold and deduct the required amounts on the change

PTE must have a completed Form RPD-41353, Owner’s

in net income due to the election, or

or Remittee’s Agreement to Pay Withholding on Behalf

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

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

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

it files its return for the tax year to which the agreement

from the discharge of indebtedness in conjunction with

pertains. If the Department notifies the PTE that the owner

the reacquisition after December 31, 2008 and before

has failed to remit the required payment, the agreement

January 1, 2011 of an applicable debt instrument for the

is no longer acceptable by the Department as reasonable

period 2014 through 2018 and the entity has insufficient

cause for failure to withhold. The PTE is not responsible

cash to remit the withholding amount due on the deferred

for withholding on the net income earned in quarters that

income reported in the year.

ended prior to the Department’s notification.

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

3. The owner maintains its place of business or residence

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

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 withholding

place of business is in New Mexico, or

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

•

If a corporation incorporated in New Mexico, the

obtain approval from the Secretary before you file your return.

corporation’s incorporation papers are on file, with

Please include with your request detailed information to sup-

sufficient portions of those papers to demonstrate

port an alternative reasonable cause for not withholding. To

incorporation in New Mexico, or information from the

request the Secretary’s approval, submit a written request to

Public Regulation Commission web site indicating

the Albuquerque District Office at New Mexico Taxation and

that the corporation is a New Mexico corporation in

Revenue Department, Corporate Income Tax Audit Supervisor,

good standing and its address, or

P.O. Box 8485, Albuquerque, NM 87198-8485. For assistance

call 505-841-6221.

Form Rpd-41367 11 - Annual Withholding Of Net Income From A Pass-Through Entity Detail Report - 2011 Page 5

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