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New Mexico Taxation and Revenue Department

RPD-41287 (2013)

Rev. 12/13/2013

2013 Calculation of Estimated Corporate Income Tax

Penalty and Interest on Underpayment

Instructions

(page 1 of 3)

PURPOSE OF THIS FORM

NOTE: Complete this form only if you have elected to use method 4 to calculate estimated tax for the taxable year,

and you owe penalty and interest from underpayment of estimated corporate income tax. If you qualify for method

4 and you owe penalty and interest on underpayment of estimated corporate income tax using the lower of methods 1, 2

or 3, complete this form. You may be able to reduce penalty and interest on underpayment of the estimated tax payments

by filing this form. To file this form attach it to your 2013 New Mexico CIT-1 Form and mark the indicator box for method 4,

estimated underpayment penalty and interest calculation, beneath line 19 of Form CIT-1, page 2. If you do not qualify to use

method 4, do not complete this form and do not mark the box under line 19 on Form 2013 CIT-1, page 2. The Department

will compute your estimated tax due, if any, using the lower of method 1, 2 or 3 and issue you an assessment of penalty and

interest for underpayment of estimated tax.

See the instructions for Form CIT-ES, New Mexico Estimated Corporate Income and Franchise Tax Payment Voucher, for a

complete explanation of estimated corporate income tax; who is required to pay, and methods 1, 2, 3 and 4.

HOW TO COMPLETE THE FORM

Section I: Compute the estimated installment tax due for each quarter using method 4 and calculate the underpay-

ment for each quarter. Calculating estimated tax using method 4 requires that you compute corporate income tax due,

net of any tax credit applied to the tax due, for each quarter of the current taxable year. The amount of the installment tax

payment due for each quarter is 80% of the tax due for that quarter. The installment tax payments are due on or before the

15th day of the 4th, 6th, 9th, and 12th month of the tax year.

Requesting the Department to compute penalty and interest on underpayment of estimated corporate income tax.

If you wish the Department to compute the penalty and interest on underpayment of estimated corporate income tax using

method 4, mark the indicator box at the bottom of page 1 of Form RPD-41287. Complete Sections I and II only and submit

Form RPD-41287 with your 2013 Corporate Income and Franchise tax return. REMINDER: You must also check the box

under line 19 on Form CIT-1, page 2.

Line 1. For each quarter enter the due date of the quarterly estimated installment tax payment. Enter the 15th day of the

4th, 6th, 9th, and 12th month of the tax year. If the due date falls on a Saturday, Sunday, state or national legal holiday, the

due date is the next regular work day. For 2013 calendar-year taxpayers, the due dates are April 15, 2013, June 17, 2013,

September 16, 2013 and December 16, 2013.

Line 2. Enter the New Mexico net taxable income earned in the corresponding quarter. The New Mexico net taxable income

for each quarter is the portion of the amount entered on Form CIT-1, line 9, that was earned in the applicable quarter. The

amount is the net taxable income earned for the quarter, before applying the New Mexico percentage.

Line 3. For each quarter enter the net New Mexico corporate income tax due for the corresponding fiscal quarter (Form

CIT-1, page 2, line 14). If less than zero, enter zero. The corporate income tax due for each quarter is based on the income

earned during the fiscal quarter after applying the New Mexico percentage, less allowable credits.

Line 4. To complete line 4 for each quarter, multiply line 3 of the corresponding column by 80% (0.80). This is the estimated

installment tax payment due.

Line 5. Record the sum of all timely estimated tax payments made or credited to each quarter. Include only payments made

on or before the due date of the installment payment. Include any carryforwards from previous tax year returns in the

first quarter installment payment and an overpayment of a prior quarter installment payment that is applied to the current

installment payment. Include only timely installment payments made on or before the date the installment payment is due

(line 1). Payments made after each quarterly due date for the current quarter are reported on line 7. NOTE: An overpayment

of an estimated tax paid or credited can be applied to a prior quarter installment payment only when it exceeds the amount

due on the current installment date.

The amount of tax withheld under the Withholding Tax Act [Section 7-3-1 NMSA 1978] or the Oil and Gas Proceeds and

Pass-Through Entity Withholding Tax Act [Section 7-3A-1 NMSA 1978] shall be deemed a payment of estimated tax. An equal

amount of the tax withheld is deemed paid on each quarterly payment due date unless the taxpayer establishes the dates

Form Rpd-41287 - Calculation Of Estimated Corporate Income Tax Penalty And Interest On Underpayment - 2013 Page 4

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