New Mexico RPD-41367 - 1120S - Tax Year 2022

  • Article Type:
  • QA
  • Last Modified:
  • 03/24/2023

Question

What are some common Questions and their answers regarding New Mexico Form RPD-41367 with an S Corporation return?

Environment

  • CCH® ProSystem fx® Tax
  • CCH Axcess™ Tax
  • S Corporation - 1120S
  • New Mexico - NM

Answer

QuestionAnswer
-Form Name
  • RPD-41367 PTW Detail Report For Annual Withholding of Net Income From a PTE.  May also be abbreviated as PTW-D (Pass-Through Withholding Detail)
-State Links
  • This provides a directory of many publicly accessible documents, including tax forms and their instructions.  The site instructions state to "click on Open File to the right of the title."  This is no longer active.  Users should click on the title to drill down to the forms they need.  For the RPD-41367 follow the path: Income Taxes > Income Taxes (Current year forms) > Pass-through withholding forms.  This will get them to the main form, the instructions, and supplemental forms, including payment vouchers and application for refund.  It does not include statements of withholding.  
    • https://www.tax.newmexico.gov/forms-publications/
    • *Note that the browser used and security settings, including pop-up blockers will affect whether the main directory of titles will show up on the web page.  User may not be allowed to access the forms using Firefox, but likely able to using Chrome.
Election for PTE
-Is an Election Required?
  • An election is required if the PTE will be taxed directly. 
-Made when?
  • The election is made at filing.
-Good for?
  • The election is made for each tax year on Form PTW-D and applies only to that tax year.  
    • Note, however, that once the election is made for a tax year, the election for that tax year cannot be changed by filing an amended return. 
-How do we make this election?
  • The PTE will make the election to file the Entity Level Tax by filing the RPD-41367, PTW-D Pass-Through Entity Withholding Detail Report and selecting the “Entity Level Tax” under Section D. Reporting Detail.
-Option  to Opt-Out?
  • The partners or members of the PTE have to determine whether the PTE will make the election.  
  • The agreement among the partners or members should control that decision.  
  • Note that the election will affect all the partners or members.  
  • The entity cannot elect to pay tax directly on the income of some of its partners or members, but not others.  
  • The election is to pay tax directly on all distributed net income.
Generation of State PTE Return
-How do we generate the form above?
  • Enter an option at New Mexico > 1. General > 6 RPD-41367 option code (Interview New Mexico > NM1 Box 46) to generate Form RPD-41367.
-Is this a separate filing from the main form, part of the main form, or filed on it's own?
  • New Mexico PTW-D (RPD-41367) is efiled separate from the Form PTE return; The RPD-41367 is filed in addition to the business return, the PTE NM Information Return for Pass-Through Entities.
Estimates
-Can we apply an overpayment from the current year form?
  • The option to apply part or all of the overpayment to the next tax year is a new feature for Tax Year 2022. 
  • It is entered on New Mexico > 5. Payments / Penalties > 2 - Tax Payments > 12 Overpayment applied to 2023 estimated tax
    • (Interview New Mexico > NM2 Box 104).
Interest/Penalties
-Do interest/penalties apply?
  • Penalty and interest is required when the entity fails to file timely or to pay the amount when due. Filers may calculate interest and penalty themselves, or leave these lines (Form RPD-41367 lines 10, 11) blank for the department to calculate.  
  • Filers may input penalty and/or interest at
    • New Mexico > 1. General > 1 - Basic Data > 13 Penalty AND/OR 14 Interest.
    • (Interview New Mexico > NM1 Box 55: penalty AND/OR NM1 Box 56: Interest). 
-Is there an underpayment penalty?
  • Regarding Underpayment penalty, the penalty applies when the filer fails to pay the amount due, even if they file timely.  
  • While interest accrues on the unpaid portion, the penalty is calculated against the entire tax due amount using the number of months, whole or partial, that have elapsed between the due date and payment date.
Additional PTE Information
Common State > State PTE Generation worksheet >Grid 23  (Interview PTE-ST1, boxes 300-364)
-Does this section apply to this state?
  • No.
Additional Input Available
- Does new input options under State and City Tax Refund flow to the state?
  • NA
- Does new input options under Taxes and Licenses flow to the state?
  • NA
- Does new input options under Rent/Royalty flow to the state?
  • NA
- Does the new input options under Farm flow to the state?
  • NA

Additional Information

  • If members are exempt from withholding, and a 'N' is entered on Line 5 Withholding Required in the member information section of the RPD-41367 pages 2 and 3, then there must be a reason for not withholding code associated with that member on Line 6 Reason Code.  Reason codes can be entered at Federal New Mexico > 5. Other > 1 - Form RPD-41353, RPD-41354 > Reason Code (NM3 Box 34).
  • Composite tax elections can be made for non-resident members, elected for each individual member.  This input can be made at New Mexico > 5. Other > 1 - Form RPD-41353, RPD-41354 > Composite Return (NM3 Box 35).
  • The NBTIN (New Mexico Taxpayer Identification Number) was previously called the CRS number.  They are the same 11-digit number.
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