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RPD-41367 (2013)

New Mexico Taxation and Revenue Department

Rev. 08/08/2013

2013 Annual Withholding of Net Income From a Pass-Through Entity Detail Report

Instructions

Page 4 of 5

federal income tax purposes for the tax year;

Proceeds and Pass-Through Entity Withholding Tax

Act. The owner remits the tax required to be withheld

• A partnership that is organized as an investment partner-

using a form of payment such as estimated payments

ship in which the partner’s income is derived solely from

or withholding. The owner can also satisfy the terms of

interest, dividends and sales of securities;

the agreement by filing its New Mexico income tax return

• A single member limited liability company that is treated as

and paying the tax due. The PTE must have a completed

a disregarded entity for federal income tax purposes, or

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

• A publicly traded partnership as defined in Subsection (b)

Pay Withholding on Behalf of a Pass-Through Entity or

of Section 7704 of the Internal Revenue Code.

Remitter, on file at the time it files its return for the tax

year to which the agreement pertains. If the Department

“Personal Services Business” means a business organization

notifies the PTE that the owner has failed to remit the

that receives payments for the services of a performing artist

required payment, the agreement is no longer accept-

for purposes of the film production tax credit.

able by the Department as reasonable cause for failure

to withhold. The PTE is not responsible for withholding

“Owner” means a partner in a partnership not taxed as a

on the net income earned in periods that ended prior to

corporation for federal income tax purposes for the tax year,

the Department’s notification.

a shareholder of an S corporation or of a corporation other

than an S corporation that is not taxed as a corporation for

4. The owner maintains its place of business or residence

federal income tax purposes for the tax year, a member of

in New Mexico:

a limited liability company or any similar person holding an

•

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

ownership interest in any pass-through entity. Owner also

1099-Misc or RPD-41359, Annual Statement of

means a performing artist to whom payments are due from

Pass-Through Entity Withholding, is a New Mexico

a personal services business.

address;

•

If an individual signed Form RPD-41354, Declaration

“Partnership” means a combination of persons, including a

partnership, joint venture, common trust fund, association,

of Principal Place of Business or Residence in New

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

pool or working agreement, or any other combination of per-

New Mexico and declaring the physical location of

sons treated as a partnership for federal income tax purposes.

the individual’s abode in New Mexico;

•

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

Adjustments to the amount withheld:

•

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

tion of Principal Place of Business or Residence in

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

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

place of business is in New Mexico, or

quired to be withheld for oil and gas proceeds.

•

If a corporation incorporated in New Mexico, the

•

If a PTE has deducted and withheld an amount pursuant

corporation’s incorporation papers are on file, with

to the Oil and Gas Proceeds and Pass-Through Entity

sufficient portions of those papers to demonstrate

Withholding Tax Act, from the net income of an owner

incorporation in New Mexico, or information from the

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

Public Regulation Commission website indicating

that amount in determining the amount the payee PTE

that the corporation is a New Mexico corporation in

must withhold and deduct.

good standing and its address.

Reasonable Cause for Not Withholding.

5. Documentation is on file showing that the owner is

1. If the amount to be withheld from an owner’s allocable

granted exemption from the federal income tax by the

share of the net income in any calendar year is less than

United States Commissioner of Internal Revenue as an

$100, no withholding is required.

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

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

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

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

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

IRS. The obligation to deduct and withhold from payments

holding is required.

to organizations identified in this paragraph applies if that

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

income constitutes unrelated income.

that the owner pay the amount that the PTE would have

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

been required to withhold and remit to the Department

United States, New Mexico or any agency, instrumentality

on behalf of the owner pursuant to the Oil and Gas

Form Rpd-41367 - Annual Withholding Of Net Income From A Pass-Through Entity Detail Report - 2013 Page 6

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