The RPD-41359 form is the Annual Statement of Pass-Through Entity Withholding, required by the New Mexico Taxation and Revenue Department. This form must be submitted by pass-through entities to report the withholding tax on net income allocated to their owners. Owners must attach this form to their New Mexico state income tax returns to claim any tax withheld against their personal or corporate income tax obligations.
Here are key takeaways regarding the RPD 41359 New Mexico form:
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Filling out the RPD-41359 form for New Mexico can be straightforward, but many individuals make common mistakes that can lead to complications. One frequent error is failing to enter the correct tax year at the top of the form. This information is crucial as it helps the New Mexico Taxation and Revenue Department track the filing accurately.
Another mistake is not including the federal employer identification number (FEIN) in the correct format. The FEIN must be entered as XX-XXXXXXX, including hyphens. Omitting the hyphens or entering the number incorrectly can cause delays in processing.
Many people also overlook the importance of providing accurate contact information for both the pass-through entity and the owner. This includes the name, address, and phone number. If the address is outside the U.S., it is essential to mark the appropriate box. Failing to do so may lead to miscommunication or issues with the filing.
In addition, some filers mistakenly leave out the Combined Reporting System (CRS) identification number. While this number is optional, including it can help clarify the entity’s tax obligations. Not providing this information could raise questions during a review.
Another common error is incorrectly marking the identification number boxes. If the owner’s identification number is a FEIN, the FEIN box should be checked. Conversely, if it is a Social Security Number (SSN), the SSN box must be marked. Confusing these two can lead to significant processing issues.
People often miscalculate the New Mexico net income allocated to the owner. This amount must reflect the correct figure as reported by the pass-through entity. Any discrepancies can result in penalties or additional taxes owed.
Additionally, forgetting to report the New Mexico state tax withheld is a common oversight. This figure is essential for the owner to claim the appropriate tax credits on their income tax return. Leaving it blank can lead to underreporting of tax liabilities.
Another mistake involves not sending a copy of the completed form to each owner by the deadline. The forms must be sent by February 15 or the next business day if that date falls on a weekend or holiday. Missing this deadline can result in penalties for the pass-through entity.
Finally, some individuals fail to attach the RPD-41359 form to their New Mexico state income tax return. This attachment is necessary to claim the amount of tax withheld. Not including it can lead to delays in processing the return and potential issues with tax liability.
RPD-41359 Rev. 08/27/2014
New Mexico Taxation and Revenue Department
Annual Statement of Pass-Through Entity Withholding
Tax Year
Pass-through entity’s federal employer identiication number
(FEIN)
Pass-through entity’s name, street address, city,
Pass-through entity’s CRS identiication number (optional)
state, ZIP code, and phone number
Mark box if address
Owner’s federal identiication number
Mark one
FEIN
outside the U.S.
box
SSN
Owner’s name, street address, city, state, and
New Mexico net income of the owner from the pass-through
ZIP code
entity
New Mexico state tax withheld
Owners must attach this form to the New Mexico state income tax return to claim the amount of tax withheld against personal income or corporate income tax due.
Instructions
page 1 of 2
About This Form. Pass-through entities (PTEs) that are subject to report and withhold New Mexico tax from each owner’s share of net income allocable to New Mexico, ac-
cording to the Oil and Gas Proceeds and Pass-Through Entity Withholding Tax Act (Sections 7-3A-1 through 7-3A-9
NMSA 1978), are required to annually submit RPD-41359,
Annual Statement of Pass-Through Entity Withholding, Form 1099-MISC, or pro forma Form 1099-MISC (the PTE may
use any of these three forms) to owners.
Owners (including partners, members, and beneiciaries,
which are all considered owners) must attach the forms received from PTEs to their New Mexico state income tax returnstoclaimtheamountofincomeandtaxwithheldagainst their personal income or corporate income tax due.
IMPORTANT: If no owners received net income from the
PTE for a calendar year, no ilings are required for that year.
An estate or trust that distributes New Mexico net income that is taxable to its recipients is a PTE and subject to
withholding pursuant to the Oil and Gas Proceeds and Pass- Through Entity Withholding Tax Act (Sections 7-3A-1 through
7-3A-9 NMSA 1978). As a PTE, the trust or estate is also required to withhold from the non-resident recipient’s share of the trust or estates taxable New Mexico net income.
An entity that has had tax withheld cannot pass a withholding statement directly to another taxpayer. Generally, the recipi- ent of the withholding statement must ile and report the tax
withheld on its New Mexico income tax return.
For Help. To get help with this form and corporate income taxes, in Santa Fe call (505) 827-0825, call toll free (866) 809-2335 and select option 4, or send email to cit.taxreturn-
help@state.nm.us.
INSTRUCTIONS FOR PASS-THROUGH ENTITIES
This section is for PTEs. If you are an owner, see page 2,
Instructions for Owners.
What to File. To report the New Mexico net income and the state tax withheld for each owner, you are required to ile RPD-41367 with the New Mexico Taxation and Revenue
Department and one of these forms to owners (any of these forms is acceptable):
•New Mexico Form RPD-41359
•Form 1099-MISC
•A pro forma Form 1099-MISC
If the net income you paid on Form 1099-MISC is a combi- nation of income from multiple states, separately state the
income from New Mexico and the amount of New Mexico tax withheld.
Other Reporting Requirements. PTEs are required to pro- vide suficient information to enable owners to comply with the
provisions of the Income Tax Act and the Corporate Income
and Franchise Tax Act, with respect to an owner’s share of
the net New Mexico income. A PTE that uses a Schedule
K-1, or equivalent form to report to owners their share of the net income, must also provide one of the following to report to owners the allocable net income and the New Mexico tax withheld:
Due Date to Send Forms to Owners. Send the forms (RPD-41359, Form 1099-MISC, or pro forma Form
1099-MISC) to owners by February 15 of the year following
the year for which you withheld New Mexico state tax from their net income. If February 15 falls on a Saturday, Sunday, or a state or national legal holiday, the return is timely if the postmark bears the date of the next business day.
How to Complete RPD-41359
Column 1
Year and Contact Information
1.Enter the tax year.
2.Enter your PTE name, address, and phone number. If the address is outside the U.S., mark the box.
3.Enter the owner’s name and address. If the address is outside the U.S., mark the box.
Column 2
Identiication Numbers, Net Income, and State Tax Withheld
1.Enter your PTE federal employer identiication number
(FEIN) using hyphens in XX-XXXXXXX format.
2.If applicable, enter the owner’s Combined Reporting System (CRS) identiication number using hyphens in
XX-XXXXXX-XXX format.
3.Enter the owner’s federal identiication number using hy- phens. If the number is an FEIN, enter it in XX-XXXXXXX format and mark the FEIN box. If the number is a social security number, enter it in XXX-XX-XXXX format and mark the SSN box.
4.Enter the New Mexico net income the PTE allocated to the owner.
5.Enter the New Mexico state tax withheld.
page 2 of 2
Send Each Owner a Copy. After completing RPD-41359
(or Form 1099-MISC or pro forma Form 1099-MISC) for all owners, send each owner a copy of the form by February 15 or the next business day, if February 15 falls on a Saturday, Sunday, or a state or national legal holiday.
ForMoreInformation.See FYI-330, IncomeandWithholding Returns and Electronic Filing.
INSTRUCTIONS FOR OWNERS
This section is for owners. If you are a PTE, see page 1,
Instructions for Pass-Through Entities.
Due Date to File with the State. You are required to ile the RPD-41359, Form 1099-MISC, or pro forma Form
1099-MISC that you received from the PTE with your New Mexico income tax return. The due date is the same date your New Mexico income tax return is due.
How to File. Attach RPD-41359, Form 1099-MISC, or pro forma Form 1099-MISC to and ile it with your New Mexico
income tax return when claiming the New Mexico income and the amount of tax withheld against your personal or corporate income tax due.
IMPORTANT:Unless you are listed as the owner or the recipi- ent of the income, do not attach these forms to your income tax return. When iling your return, you cannot use an income
and withholding statement that is issued to someone else.
When dealing with the RPD-41359 form in New Mexico, several other documents may also be necessary to ensure compliance with state tax regulations. Each of these forms serves a specific purpose and helps facilitate the reporting and claiming of taxes withheld on income from pass-through entities.
Each of these documents plays a crucial role in the tax reporting process for pass-through entities and their owners. Understanding their purpose can help ensure compliance and facilitate accurate tax filings.
When filling out the RPD 41359 New Mexico form, consider the following guidelines to ensure accuracy and compliance.
Form 1099-MISC: This form is used to report miscellaneous income, similar to RPD-41359. Both forms help ensure that income and tax withheld are accurately reported to the IRS and state authorities.
Pro Forma Form 1099-MISC: This is a version of the 1099-MISC that can be customized. Like RPD-41359, it is used to report income and tax withheld, offering flexibility for pass-through entities.
Schedule K-1: This form reports income, deductions, and credits from partnerships or S corporations. It serves a similar purpose as RPD-41359 by detailing an owner's share of income and tax withheld.
Form W-2: This form reports wages paid to employees and the taxes withheld. While RPD-41359 focuses on pass-through entities, both are essential for reporting income and tax obligations.
Form 1040: This is the individual income tax return form. Owners use it to report income, including amounts reported on RPD-41359, ensuring that all income and withholdings are accurately captured.
Form 1065: This form is for partnerships to report income, deductions, and other tax-related information. Similar to RPD-41359, it helps ensure that partners report their share of income correctly.
Form 1120-S: This form is for S corporations to report income, deductions, and credits. Like RPD-41359, it ensures that shareholders report their share of income accurately.
New Mexico Form RPD-41367: This form is used to report the net income and state tax withheld for each owner. It complements RPD-41359 by providing additional details on tax obligations.
Form 941: This form reports employment taxes withheld from employees. While it focuses on employee wages, it shares a similar goal of ensuring accurate reporting of tax withholdings.
Understanding the RPD 41359 New Mexico form can be challenging, and several misconceptions often arise. Here are nine common misunderstandings, along with clarifications to help you navigate this important document.
In reality, any pass-through entity (PTE) that withholds New Mexico tax from its owners must file this form, regardless of size.
This form is mandatory for PTEs that are subject to withholding tax. Failure to file can lead to penalties.
Owners must attach this form to their New Mexico state income tax return to claim the amount of tax withheld.
Both individuals and entities, such as trusts and estates, are required to comply with the provisions of this form.
The form must be sent to owners by February 15 of the following year after the tax was withheld.
If no owners received net income from the PTE for a calendar year, no filing is required for that year.
PTEs may also use Form 1099-MISC or a pro forma Form 1099-MISC to report income and tax withheld.
Accurate information is crucial, as it affects tax obligations for both the PTE and its owners.
Each owner must use their own form. Using a form issued to another individual is not permitted.
By addressing these misconceptions, individuals and entities can better understand their responsibilities regarding the RPD 41359 form and ensure compliance with New Mexico tax laws.