S-corporations, limited liability companies and other pass-through entities doing business in the state must file a New Mexico Income and Information Return for Pass-Through Entities (PTE).
This requirement includes entities registered to do business in the state, transacting business in, into or from the state, or receiving any income from property or employment within the state.
Among pass-through entities are corporations taxed federally as S-corporations, any partnership, joint venture, common trust fund, limited association, pool or working agreement, limited-liability company, or any combination of persons or interests required to file a federal partnership return of income.
If you are a pass-through entity, file in New Mexico on or before the due date of your federal return for the taxable year. At the time you file the information return, New Mexico requires you to deduct and withhold tax from each non-resident owner’s share of net income if you do not already hold a tax agreement signed by the owner. Submitting a signed Form RPD-41353, Owner's or Remittee's Agreement to Pay Withholding on Behalf of a Pass-through Entity or Remitter, makes the non-resident owner responsible for filing a return and paying the tax instead of the pass-through entity.
Filing a PTE return and payment of withholding tax for the non-resident owner fulfill the non-resident owner’s obligation to file an income tax return if that is the non-resident owner’s only New Mexico income. A non-resident owner with income from other sources within New Mexico must still file a separate income tax return.
The rate at which withholding pass-through entities must withhold tax from non-resident owners equals the maximum bracket rate set by Section 7-2-7 NMSA 1978 of the Personal Income Tax Act.
Taxation and Revenue Department
P.O. Box 25127
Santa Fe, NM 87504-5127
For assistance, call (505) 827-0825.
Or for tax return help, email us at CIT@state.nm.us.
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New Mexico Income and Information Return for Pass-Through Entities
FYI-350: Corporation Income Tax and Corporation Franchise Tax