The CIT-1 New Mexico form is the official Corporate Income and Franchise Tax Return used by corporations operating in New Mexico. This form collects essential information regarding a corporation's income, tax liability, and any applicable credits. Completing the CIT-1 accurately ensures compliance with state tax regulations and facilitates proper assessment of taxes owed or refunds due.
Key Takeaways for the CIT 1 New Mexico Form:
Nm Tax Credit - Section I outlines the qualifications needed for specific rebates and credits.
For further assistance in drafting your Bill of Sale, you can visit https://califroniatemplates.com, where you'll find helpful templates and resources to facilitate a successful transaction.
New Mexico Wic Prescription - Weight and growth measurements are essential for appropriate food provisioning.
Is a Bill of Sale Required in New Mexico - Understanding this form can help streamline the vehicle selling process for individuals.
Filling out the CIT-1 New Mexico form can be a complex process, and many individuals make common mistakes that can lead to delays or issues with their tax return. One frequent error is incorrectly entering the corporation's name or address. It's essential to ensure that the name matches exactly with what is registered with the state. A simple typo can cause significant problems in processing the return.
Another common mistake involves the failure to provide a Federal Employer Identification Number (FEIN). This number is crucial for identification purposes. Without it, the New Mexico Taxation and Revenue Department may reject the return. Always double-check that the FEIN is accurate and complete.
Many filers also overlook the requirement to indicate the method of accounting—whether cash or accrual. This choice can affect tax calculations and reporting. If this section is left blank, it may lead to additional scrutiny or inquiries from the tax department.
Additionally, some people forget to answer the question regarding whether the corporation's federal income tax liability has changed due to an IRS audit. If the answer is "yes," it’s necessary to submit an amended return along with the appropriate documentation. Neglecting this can result in penalties or incorrect tax assessments.
Another error is failing to properly complete the section regarding the principal business activity in New Mexico. Providing a vague or incorrect description can lead to misunderstandings about the nature of the business, which may impact tax obligations. Clarity and accuracy in this section are vital.
Moreover, individuals often neglect to sign the form. An unsigned return is considered incomplete and may not be processed. Always ensure that the taxpayer's signature is present before submitting the return.
Lastly, many filers do not carefully review the refund delivery options. If a refund is expected, it’s important to indicate whether it will go to an account outside the United States. Failing to answer this question correctly can lead to delays in receiving the refund. Always read the instructions thoroughly to avoid these pitfalls.
2022 CIT-1
NEW MEXICO CORPORATE INCOME AND FRANCHISE TAX RETURN
Corporation name
1a
Mailing address (number and street name)
2a
City
State
Postal/ZIP code
3a
If foreign address, enter country
Foreign province and/or state
3b
FEIN (Required)
New Mexico Business ID #
5a
5b
*226080200*
CHECK ONE (Required):
4a
Original Return
FOR DEPARTMENT USE ONLY
4b
Amended Return
4b.(i) Type:
4b.(ii) Date:
6d
Contact phone number
Fiscal (or Short-Year) Tax Year Starts Fiscal (or Short-Year) Tax Year Ends
Extended Due Date
6a
6b
6c
COMPLETE THE FOLLOWING:
A.
State of incorporation
A1. Date of incorporation
B.
Date business began in New Mexico
B1. State of commercial domicile
C.
Name and address of registered agent in New Mexico
First Name and Last Name
Address
D.
NAICS Code (Required)
E.
Is this a return for a unitary group? Yes
No
water's-edge group. Year of election
ZIP code
D1. Principal business activity in New Mexico
E1. If yes, which type of unitary group? worldwide combined group
consolidated group. Year of election
Member of a unitary group, filing separately. Name of parent entity
NOTE: A unitary group has certain filing requirements. See page 9 of the instructions for definition.
F. Indicate method of accounting:
Cash
Accrual
G.If this is the corporation's final return, was the corporation:
Other (specify) F1.
Dissolved
Merged or reorganized
Withdrawn
G1. Date
H.Has this corporation's federal income tax liability changed for any year due to an IRS audit or the filing of an amended federal return that has not
been reported to New Mexico? Yes
If yes, submit an amended New Mexico Corporate Income and Franchise Tax Return,
and a copy of the amended federal return or Revenue Agent's Report (RAR), if applicable, to the New Mexico Taxation and Revenue Department.
I. If this a return for a filing group, complete the following information for each corporation in the filing group.
The total of column 3 must equal CIT-1, page 2, line 25, and the total of column 4 must equal CIT-1, page 2, line 21. If there are more than three members of the filing group, complete CIT-S to add additional corporations.
Column 3
Column 4
Column 1
Column 2
Amount of quarterly, tentative, or other
$50 if corporation
FEIN
payments to apply to this return
pays franchise tax
Totals
J.If other than a corporation, enter your legal entity type (for example, LLC or partnership):
Refund Express!!
RE1 1. Routing number:
RE2 2. Account number:
Have your refund directly deposited. See instructions and fill in 1, 2, 3, and 4.
RE3 3. Type: Checking
Savings
Enter X.
4.REQUIRED: WILL THIS REFUND GO TO OR THROUGH AN ACCOUNT LOCATED OUTSIDE THE UNITED STATES? If yes, you may not use this refund delivery option. See instructions.
RE4 YES
You must answer
NO
this question.
2022 CIT-1 (page 2)
*226090200*
1.
Taxable income before NOL and special deductions (see CIT-1 instructions).
1a. Captive REIT deductions.
1a.
1b. Exempt entity deductions.
1b.
2.
Interest income from municipal bonds, excluding New Mexico bonds.
3.
Other additions to the base income of a unitary group (see CIT-1 instructions).
4.
Subtotal of base income after additions. Add lines 1, 1a, 1b, 2 and 3.
5.
Federal special deductions (from federal Form 1120, line 29b). Enter only a positive number.
6.
Interest from U.S. government obligations or federally-taxed New Mexico bond.
7.
Certain foreign dividends, Subpart F income, and GILTI (from CIT-C line 6).
8.
Other subtractions to the base income of a unitary group (see CIT-1 instructions).
9.
New Mexico net income or loss. Subtract lines 5, 6, 7, and 8 from 4.
10.
Net allocated income or loss (from CIT-B, line 8).
11.
Total apportionable income or loss. Subtract line 10 from line 9.
12.
New Mexico apportionment percentage (from CIT-A, line 5, or 100%).
_ _ _ . _ _ _ _ %
13.
Income or loss apportioned to New Mexico. Line 11 multiplied by the percentage on line 12.
14.
Net New Mexico allocated income or loss (from CIT-B, line 9).
15.
New Mexico apportioned net income or loss. Add lines 13 and 14.
16.
Net operating loss deduction, not in excess of 80% of line 15. Attach form RPD-41379.
17.
Liquor license lessor deduction. See CIT-1 Instructions.
18.
Exemption for net income subject to the Entity Level Tax. See CIT-1 Instructions
19.
New Mexico taxable income. Subtract line 16, 17, and 18 from 15.
20.
New Mexico Income tax. Tax on amount on line 19 (see tax table on page 13 of CIT-1 instructions).
21.
Total tax credits applied against the income tax liability on line 20 (from CIT-CR, line A). Attach CIT-CR.
22.
Net income tax. Subtract line 21 from line 20. Amount cannot be negative.
23.
Franchise tax ($50 per corporation).
24.
Total income and franchise tax. Add lines 22 and 23
25.
Amended Returns Only. Enter amount of all 2022 refunds received and overpayments applied to 2023. Also
see instructions for line 27
26.
Subtotal. Add lines 24 and 25.
27.
Total Payments: q Quarterly q Extension
qApplied from prior year
27a. q Mark this box if you want to use method 4 to calculate penalty and interest on underpayment of
estimated tax. See instructions, attach RPD-41287.
28.
New Mexico income tax withheld from oil and gas proceeds. Attach Forms 1099-MISC, RPD-41285.
29.
New Mexico income tax withheld from a pass-through entity. Attach Forms 1099-MISC, RPD-41359.
30.
Total payments and tax withheld. Add lines 27 through 29.
31.
Tax due. If line 26 is greater than line 30, subtract line 30 from line 26.
32.
Penalty. See CIT-1 Instructions.
33.
Interest. See CIT-1 Instructions.
34.
Total amount due. Mail your check separately with CIT-PV. Add lines 31 through 33.
35.
Overpayment. If line 30 is greater than line 26, enter the difference.
36.
Amount of overpayment to apply to 2023 liability (not more than line 35).
37.
Amount of overpayment to refund. Subtract line 36 from line 35.
38.
Total portion of tax credits to refund (from CIT-CR, line B). Attach CIT-CR.
39.
Total refund of overpaid tax and refundable credit due to you. Add lines 37 and 38.
Taxpayer's Signature
I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct, and complete. Declaration of preparer (other than taxpayer or an employee of the taxpayer) is based on all information of which preparer has any knowledge.
Signature of officer
Date
Title
Taxpayer's email address
Paid Preparer's Use Only
Signature of preparer if
other than employee of the taxpayer
P1
NMBTIN ____________________________
P2
_
P3
Preparer's PTIN
_____________________
P4
Preparer's phone number ____________________________
2022 CIT-A
NEW MEXICO APPORTIONED INCOME FOR
*226280200*
MULTISTATE CORPORATIONS (attach to CIT-1)
Taxpayers with income from inside and outside New Mexico must complete this schedule.
The Department cannot accept computerized schedules instead of this form. You must complete column 1, Total Everywhere, and all other applicable line items for the Department to process the return. Round all dollar amounts.
A. Have you changed your reporting of any class or type of allocated or apportioned income from the way it was reported in
a prior taxable year?
Yes
B. This entity submitted written notification of its election to use one of the special methods of apportionment of business
income for tax year ending _______________. The effective date of the election is
______________. See instructions.
Month/Day/Year
C. Mark the box indicating the special method elected.
Manufacturers
Headquarters Operation
PROPERTY FACTOR
Average annual value of inventory
Average annual value of real property
1b
Average annual value of personal property
1c
Rented property. Multiply annual rental value by 8
1d
Total property
1e
Percent
Total Everywhere
Inside New Mexico
Calculate each
percentage to four
decimal places; for
example, 22.5431%.
1. Property factor. Divide Total property column 2 by column 1 and then multiply by 100...............................................
PAYROLL FACTOR
1
_ _ _ . _ _ _ _%
Wages, salaries, commissions, and other compensation
of employees related to apportionable income
2. Payroll factor. Divide column 2 by column 1 and then multiply by 100
+
SALES FACTOR
2
gross receipts
3. Sales factor. Divide column 2 by column 1 and then multiply by 100
3
Sum of factor percentages. Add lines 1, 2, and 3
4a. Count of factors. Enter the total count of all factors used
NEW MEXICO PERCENTAGE. Divide line 4 by the count of factors used to calculate line 4a
4_ _ _ . _ _ _ _%
5_ _ _ . _ _ _ _%
*226380200*
2022 CIT-B
NEW MEXICO ALLOCATION OF NON-BUSINESS INCOME OR LOSS
SCHEDULE OF INCOME NOT DERIVED FROM THE CORPORATION'S TRADE OR BUSINESS The Department cannot accept computerized schedules instead of this form. Round all dollar amounts.
Non-business dividends
Non-business interest
Non-business rents
Non-business royalties
4
Profit or loss on sale or exchange of
non-business assets
5
Non-business partnership income or loss
6
7. Other non-business income or loss
7
(Attach schedule)
Gross Amount
Related Expenses
Column 1 less Column 2
Allocation to New Mexico
Net allocated income.
Enter here and on CIT-1, line 10. Add column 3, lines 1 through 7
8
Net New Mexico allocated income.
Enter here and on CIT-1, line 14. Add column 4, lines 1 through 7
9
2022 CIT-C
CERTAIN FOREIGN DIVIDENDS, SUBPART F, AND GILTI
1.Certain dividends from foreign corporations (from federal form 1120, Schedule C, Line 14)..............................
2.Subpart F inclusions derived from hybrid dividends of tiered corporations (from federal form 1120, Schedule C,
Line 16b)..............................................................................................................................................................
3.Other inclusions from CFCs under subpart F (from federal form 1120, Schedule C, Line 16c)...........................
4.Global Intangible Low Taxed Income (GILTI) net of the deduction provided under IRC Sec. 250 (federal form 1120, Schedule C, Line 17, net of line 22)............................................................................................................
5.Foreign dividend gross-up (from federal form 1120, Schedule C, Line 18)...........................................................
6.Total. Add lines 1 through 5. Also enter on line 7, CIT-1.......................................................................................
The CIT-1 New Mexico form is essential for corporations filing their corporate income and franchise tax returns in New Mexico. Alongside this form, several other documents may be required to ensure compliance with state tax regulations. Here are four commonly used forms that complement the CIT-1.
Using these forms in conjunction with the CIT-1 ensures that corporations meet their filing obligations while accurately reporting their income and potential tax credits. Properly completing these documents can help streamline the tax process and minimize the risk of errors or penalties.
When filling out the CIT-1 New Mexico form, it’s important to get it right. Here are some things you should and shouldn’t do:
Form 1120 (U.S. Corporation Income Tax Return): Like the CIT-1, this form is used by corporations to report their income, deductions, and tax liability to the federal government. Both forms require detailed financial information and the calculation of taxable income.
Form 1065 (U.S. Return of Partnership Income): This form serves a similar purpose for partnerships. It requires reporting of income, deductions, and the allocation of income among partners, paralleling how corporations report their income on the CIT-1.
Form 990 (Return of Organization Exempt from Income Tax): Nonprofits use this form to report their financial activities. While the CIT-1 is for profit-making entities, both require detailed financial disclosures and compliance with tax regulations.
Form 941 (Employer's Quarterly Federal Tax Return): This form is used to report employment taxes. While it focuses on payroll, both the CIT-1 and Form 941 require accurate reporting of financial information to ensure compliance with tax obligations.
Form 1040 (U.S. Individual Income Tax Return): Although aimed at individuals, both forms involve reporting income and deductions. They share the goal of determining tax liability based on reported financial data.
CIT-A (New Mexico Apportioned Income for Multistate Corporations): This form is specifically designed for corporations with income from multiple states. It complements the CIT-1 by providing a method to calculate income attributable to New Mexico.
CIT-B (New Mexico Allocation of Non-Business Income or Loss): This document is used to report income not derived from a corporation’s primary business activities, similar to how the CIT-1 calculates total taxable income.
CIT-C (Certain Foreign Dividends, Subpart F, and GILTI): This form addresses specific foreign income inclusions. Like the CIT-1, it requires detailed reporting of income sources and deductions, focusing on international tax compliance.
Schedule C (Profit or Loss from Business): This form is used by sole proprietors to report business income and expenses. Both the CIT-1 and Schedule C aim to calculate net income, albeit for different types of entities.
Misconceptions about the CIT-1 New Mexico form can lead to confusion among corporations filing their tax returns. Here are four common misunderstandings: