Personal Income Tax
A tax return preparer is a person who is paid to prepare tax returns for others or who employs other persons to prepare tax returns for compensation.
Section 7-1-71.4 NMSA 1978 calls for paid tax return preparers who prepare more than 25 New Mexico personal income tax returns submit tax returns using the Taxation and Revenue Department (Tax & Rev)-approved electronic media. A $5 penalty will be assessed for each personal income tax return a preparer files in violation of this requirement.
New Mexico uses the federal Employer Identification Number (EIN) to identify the preparer. All returns prepared by tax preparers employed within an office, or a branch of an office, using the same EIN count toward the 25-return threshold.
An exception to the electronic filing requirement occurs when your return is being prepared for you, and you request otherwise. To waive the tax preparer’s electronic-filing requirement, form RPD-41338, Taxpayer Waiver for Preparers Electronic Filing Requirement must be completed by the taxpayer and submitted it to the tax preparer. The tax preparer must check the box in the “Paid Preparer’s Use Only” section on form PIT-1 to indicate that a signed Taxpayer Waiver for Preparers Electronic Filing Requirement is on file.
Helpful Links
New and returning tax return preparers, Electronic Return Originators (EROs), and Fed/State transmitters, refer to the Software Developers.
For tax return forms and publications: Forms & Publications
For legislation tax changes: Legislation and Legislative Summaries
FREQUENTLY ASKED QUESTIONS ABOUT
Tax Return Preparer – Electronic Filing Requirement
What are the benefits of e-filing returns?
The main benefits of e-filing returns are faster refunds and fewer key-entry errors. You also save tax dollars, and the electronically transmitted return cannot be lost in the mail.
How does e-filing help the Department?
E-filing eliminates key-entry errors; improves customer service, reduces the number of seasonal workers, and makes better use of staffing resources and tax dollars.
How do I electronically transmit New Mexico personal income tax returns through the Department’s Internet Website?
New Mexico’s Taxpayer Access Point (TAP) https://tap.state.nm.us/Tap. TAP is a secure resource that allows taxpayers to manage their PIT and other tax accounts online. To register as a new TAP user, click the Sign up now link on the TAP homepage and complete the required fields. You are required to verify one tax account type for TAP access at the time of registration. Access to additional tax accounts can be added after you have completed the TAP registration. There is no cost to use TAP.
At this time, the first PIT return filed in New Mexico is required to be filed either through a third-party software or a paper return.
How do I electronically transmit New Mexico personal income tax returns through the Internet using a third-party software or online program?
Through a cooperative federal/state e-file effort, you can transmit a federal personal income tax return and the New Mexico personal income tax return together.
You can also transmit a New Mexico personal income tax return electronically using software or an online program. You can locate a list of New Mexico approved software in the files above. Check with software companies to determine the costs associated with using their applications.
How do I find a software company approved by New Mexico for fed/state filing?
Every year New Mexico publishes a list of approved fed/state software developers who have demonstrated successful transmission of New Mexico personal income tax returns through the fed/state program. Software developers require annual approval. The list of approved software companies appears on or around the beginning of the year. If you are looking for a software solution before release of the approval list for the tax year in which you wish to e-file personal income tax returns, ask the software company whether it plans to support New Mexico state personal income tax returns. You can locate a list of New Mexico approved software in the files above.
Some supporting back-up documentation cannot be submitted electronically. What do I do?
When possible, you can use the Taxpayer Access Point (TAP) to electronically file the return. TAP shows where required attachments are necessary and allows attachment of the supporting documents.
If supporting back-up documentation is required and cannot be submitted electronically to Tax & Rev through an approved software, then you may electronically file the return and submit the backup to the Department using New Mexico form PIT-8453, Individual Income Tax Electronic Filing and Transmittal as a transmittal.
What about amended New Mexico personal income tax returns?
An amended return does not count in reaching the threshold that mandates tax practitioners to file by Department-approved electronic media. However, electronically filing is recommended.