New Mexico S-Corp Sub-Chapter S Corporate Income and Franchise Tax return - 1120S - Tax Year 2022

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

Question

What are some common questions regarding New Mexico Form S-Corp with an 1120S return?

Environment

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

Answer

QuestionAnswer
-Form Name
  • S-Corp New Mexico Sub-Chapter S Corporate Income and Franchise Tax return
-State Links
  • New Mexico Department of Taxation and Revenue.  This page provides high level information regarding who must file, how to file, and what forms to file.  It also includes, at the bottom, a FAQ section regarding direct taxation  of the PTE, or Entity Level Tax.
  • 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  This is no longer active.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?
  • There is no PTE election made for Form S-Corp.
Generation of State Return
-How do we generate the form above?
  • Select the checkbox at Federal > Common Sate/City > 127. State / City Generation  > 1 - State / City Generation > Line 9 for New Mexico, in the column titled  Generate tax return
  • Interview Form Gen ST-1, Box 200.
Estimates
-Are there estimates for this form?
  • S-CORP-ES
-How do we generate them?
  • Conditions per state instructions:
    • The corporation is subject to corporate income tax.
    • Its tax after applicable credits is $5,000 or more in the current tax year.
  • Force preparation:
    • Payments / Penalties / Estimates > Estimates and Application of Overpayment worksheet > Section 3 - State Estimates and Application of Overpayment > State Code NM, Estimate Code Mandatory estimate.
    • Interview Form Common State > St Pay/Est > STEST-1 > Box 30 - NM, Box 40, select option 2.
-Can you apply an overpayment from the current year form?
  • Yes.
Interest/Penalties
-Do interest/penalties apply?
  • Yes.
-Is there an underpayment penalty?
  • No.
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 Information

PTE RELATED CALCULATIONS
  1. New Mexico income tax withheld from oil and gas proceeds, input at Federal > Payments/Penalties/Estimates > 61. Payments > 2 - State Quarterly Payments > Detail > 18 Other Payments
    • (Interview Form Common State  > ST Pay/Est > STPAY-1 Boxes 130, 131); 
  2. New Mexico income tax withheld from pass-through entities, input at Federal > Payments/Penalties/Estimates > 61. Payments > 2 - State Quarterly Payments > Detail > 5 Total withheld payments
    • (Interview Form Common State  > ST Pay/Est > STPAY-1 Boxes 92, 93); 
  3. Amount from the income tax withheld  that is passed to the owners (reported on RPD-41367), input at Federal > Payments/Penalties/Estimates > 61. Payments > 2 - State Quarterly Payments > Detail > 20 Taxes paid or withheld by another entity
    • (Interview Form Common State  > ST Pay/Est > STPAY-1 Boxe 133).
  Solution Tools
  Attachments
 Solution Id 000261474/000261474
 Direct Link
To provide feedback on this solution, please login.

Your feedback about this article will help us make it better. Thank you!