A. Every remitter shall:
(1) file an annual statement of withholding for each remittee that:
(a) is in electronic format and includes a form 1099-Misc or a successor form or on a pro forma 1099-Misc or a successor form for those entities that do not receive an internal revenue service form 1099-Misc;
(b) is filed with the department on or before the last day of February of the year following that for which the statement is made; and
(c) includes the total oil and gas proceeds paid to the remittee and the total amount of tax withheld for the calendar year; and
(2) provide a copy of the annual statement of withholding to the remittee on or before February 15 of the year following the year for which the statement is made.
B. The department shall develop and adopt rules regarding the filing of a report pursuant to this section and the attachment of form 1099-Misc or a successor form or a pro forma 1099-Misc or a successor form, if the remitter is not able to file those forms in an electronic format.
C. Every remitter shall file an electronic report of the remittees who have certified that the remittee is responsible for filing the remittee's own oil and gas proceeds tax report and for paying the remittee's oil and gas proceeds tax liability due.
D. Every pass-through entity doing business in New Mexico shall:
(1) file an annual information return with the department that:
(a) is filed on or before: 1) the due date of the entity's federal return for the taxable year; or 2) if the entity's taxable year is a calendar year, if the entity is approved by the department to use electronic media for filing and if the entity uses electronic media to file the annual information return, the end of the month in which the entity's federal return is due;
(b) is signed by the business manager or one of the owners of the pass-through entity; and
(c) contains all information required by the department, including the pass-through entity's gross income; the pass-through entity's net income; the amount of each owner's allocable share of the pass-through entity's net income; and the name, address and tax identification number of each owner entitled to an allocable share of net income; and
(2) provide to each of its owners sufficient information to enable the owner to comply with the provisions of the Income Tax Act [Chapter 7, Article 2 NMSA 1978] and the Corporate Income and Franchise Tax Act [Chapter 7, Article 2A NMSA 1978] with respect to the owner's allocable share of net income.
E. The department shall compile each year the annual statements of withholding received from the remitters and the annual information returns received from pass-through entities and compare the compilations with the records of corporations, individuals, estates or trusts filing income tax returns.
History: 1978 Comp., § 7-3A-7, enacted by Laws 2003, ch. 86, § 10; 2010, ch. 53, § 14; 2012, ch. 40, § 6; 2015 (1st S.S.), ch. 2, § 5.
ANNOTATIONSThe 2015 (1st S.S.) amendment, effective September 6, 2015, amended the deadline for filing an annual information return by a pass-through entity doing business in New Mexico; in Subparagraph D(1)(a), after "on or before", added "1)", and after "the taxable year;", added "or 2) if the entity's taxable year is a calendar year, if the entity is approved by the department to use electronic media for filing and if the entity uses electronic media to file the annual information return, the end of the month in which the entity's federal return is due".
Applicability. — Laws 2015 (1st S.S.), ch. 2, § 25 provided that the provisions of Laws 2015 (1st S.S.), ch. 2, § 5 apply to taxable years beginning on or after January 1, 2015.
The 2012 amendment, effective May 16, 2012, required electronic filing of statements of withholding; provides for filing of reports if a remitter cannot file electronically; provided for filing by a remitter of reports if a remittee is responsible for filing a report and paying the tax due; in Subsection A, in Paragraph (1), in Subparagraph (a), after "is in", deleted "a form prescribed by the department" and added the remainder of the sentence; added new Subsections B and C and relettered the succeeding subsections; and in Subsection D, in Paragraph (1), in Subparagraph (c), after "each owner's", added "allocable" and after "owner entitled to", added "an allocable"; and in Paragraph (2), after "to the owner's", added "allocable".
Applicability. — Laws 2012, ch. 40, § 8 provided that the provisions of Laws 2012, ch. 40, §§ 1 through 7 are applicable to taxable years beginning on or after January 1, 2012.
The 2010 amendment, effective May 19, 2010, in Subsection A(1), after "each remittee", deleted "This statement shall be" and added "that"; in Subsection A(1)(a), at the beginning of the sentence, added "is" and after "department", deleted "and shall be"; in Subsection A(1)(b), at the beginning of the sentence, added "is" and after "statement is made", deleted "It shall include" and added "and"; in Subsection A(1)(c), at the beginning of the sentence, added "includes" and after "calendar year", deleted the former last sentence, which provided that the department shall compile each year the annual statements received from remitters and compare the compilation with records of individuals, estates or trusts filing income tax returns; in Subsection A(2), at the beginning of the sentence, added "provide a", after "statement of withholding", deleted "shall be furnished"; and after "to the remittee", deleted "by the remitter"; and added Subsections B and C.
Temporary provisions. — Laws 2010, ch. 53, § 17 provided that for a taxable year beginning on or after January 1, 2011, but before January 1, 2012, no remitter or pass-through entity shall be subject to the penalty imposed pursuant to Section 7-1-69 NMSA 1978 for failure to comply with the provisions of the Oil and Gas Proceeds and Pass-Through Entity Withholding Tax Act.