CRS-1 Filer’s Kit Contents Front cover – Announcements Due Dates Department Office Locations/Contacts GRT Rate Schedule CRS-1 Form Written Instructions CRS-1 Report Forms Other Forms & Information
Filing Period Requirements You may choose your filing status as long as you do not report an AVERAGE of $200.00 or more in total tax per month. This will require you to file MONTHLY. If you owe $25,000 or more, you must make arrangements to file and pay by EFT.
Business Location Determines Tax Rate If you are in the construction business, your tax rate is determined by the location of each construction project. If you are located in a municipality within a county, your tax rate is that of the municipality. If you are a craftsperson who sells at craft fairs where you rent a booth, that is your location for that period of time. You must use the corresponding tax rate. Service businesses use their base tax rate from their home or physical location.
Cr sCr s- 1 for m Gross Receipts Tax Compensating Tax Withholding Tax
16 Gross Receipts Tax Ten states have some variation of Gross Receipts Tax. In most cases leads to “tax pyramiding” (value added tax). Low rates, typically less than 1%. In New Mexico used as a replacement for sales tax.
Gross Receipts Tax Unlike sales tax – “seller is responsible to file reports & pay over taxes” Tax for the privilege of doing business Apply to sale or lease of property and services Prevalent practice – pass the tax to the customer
Taxable, Exempt, and Deductible Most transactions in NM are taxable unless specified by an act of legislature to be deductible or exempt. What is the difference between exemptions & deductions?
Exemption Frees the seller of the requirement to report receipts from the exempted type of activity.
Transactions involving Non-Taxable Transaction Certificates (NTTCs Non-Taxable Transaction Certificates (NTTCs) Requires the seller to report the receipts, but allows them to deduct the receipts before calculating tax liability. The Department requires taxpayers to retain substantiation in their records when claiming a deduction from gross receipts. Deduction
22 NMSA 1978 Statute 7-9-43 Nontaxable Transaction Certificate and Other Evidence Required to Entitle Persons to Deductions.
23 Issued by the Buyer/Lessee to the Seller/Lessor For the purchase or lease of material and/or services for resale Buyer/Lessee does not pay Gross Receipts Tax on purchase Creates deduction for Seller/Lessor Can be generated online, and printed if necessary
Get online and get out of line! The Taxation and Revenue Department has developed NTTC-NET, a paperless system on the web, to expedite the processing of Nontaxable Transaction Certificates (NTTCs). Taxpayers can apply for, execute and request additional NTTCs by logging on to NTTC- NET through www.tax.newmexico.gov The Taxation and Revenue Department has developed NTTC-NET, a paperless system on the web, to expedite the processing of Nontaxable Transaction Certificates (NTTCs). Taxpayers can apply for, execute and request additional NTTCs by logging on to NTTC- NET through www.tax.newmexico.gov ACTIVE SINCE JULY 1, 2005 NTTC-NET
Types of NTTCs Type 2 – Purchase of tangibles for resale Type 5 – Purchase of services for resale Type 6 – For construction contractor’s materials and services Type 9 – For tangibles purchased by not-for-profit (501c3) and governmental agencies Type 10 – Available to persons that hold an interest in a qualified generating facility Type 15 – For tangibles purchased by qualified federal contractors Type 16 – For qualified Film Production companies materials and services OSB are not available online - Contact the District office
OSB NTTC’S Type OSB NTTCs are issued to registered New Mexico sellers / lessors to execute to Out-of-State Buyers who are not registered with the department. Will resell tangible personal property outside of New Mexico.
28 New Mexico sellers may accept the Multijurisdiction Uniform Sales and Use Tax Certificate (MTC) from out-of-state buyers not required to register in New Mexico as documentation for three types of deductions: 1. Receipts from sales of tangible personal property or licenses for resale (Section 7-9-47); 2. Receipts from sales of tangible personal property to manufacturers who will incorporate the property as an ingredient or component part of the product the manufacturer is in the business of making (Section 7-9-46); and 3. Receipts from services performed directly upon tangible personal property a manufacturer is in the business of making, or upon ingredient or component parts of that product (Section 7-9-75).
29 MTCs are issued by the multistate tax commission or a state, other than New Mexico, that is a member of that organization. The certificates may be obtained through the commission’s web site at: www.mtc.gov
30 New Mexico sellers may accept the Border State Certificate (BSC) from out-of-state buyers from Arizona, California, Oklahoma, Texas, Utah and the United States of Mexico if the buyers are not required to register with this Department and who: 1. Wish to buy goods for resale or incorporation as ingredients or components of a manufactured product, or 2. Wish to buy a manufacturing service that will be performed on a manufactured product or ingredient or component part thereof, and 3. Will transport the tangible personal property across state or national boundaries.
31 For further information regarding BSC’s, please contact the Border States Caucus. The web site for the Border States Caucus is: ww.borderstatescaucus.org
Compensating Tax Called “use tax” – “buyer pays” Protect New Mexico businesses from unfair competition 5% of the value of service 5.125% of the value of property Apply to out-of-state business purchase (supplies & equipment for business use) Apply to property or service acquired using a NTTC and later used by buyer
Withholding Tax Every employer who withholds a portion of an employee’s wages for payment of federal income tax must withhold New Mexico income tax.
Personal Income Tax & Gross Receipts tax “ two distinct tax programs ”
To make personal income tax estimated payments use a PIT-ES
The CRS-1 LONG FORM is used for businesses that have more than 3 locations or require more than three lines to file. Taxpayers using the special M and F code deduction require two lines per location.
If Tax is included in Gross Receipts you will need to back out Gross Receipts Tax before entering amount on Column D HOW TO “BACK OUT” GROSS RECEIPTS TAX To “BACK OUT” tax from total receipts at the end of the report period, simply................. DIVIDE total receipts including the tax for the report period, by 100 PLUS the applicable gross receipts tax rate (i.e., if your business is in Albuquerque the tax rate is 7.00% and your gross receipts including tax are $2,000.00 then divide by 107.00%). The result is your gross receipts without tax or $1,871.35. ( to be entered in Column D of CRS-1 form). Example STEP 1: GROSS RECEIPTS (Including Tax) $2,000.00Divided By TAX RATE (Plus 100) 107.00% Equals EQUALS GROSS RECIPTS WITHOUT TAX $1,869.16 Column “D” STEP 2: GROSS RECEIPTS WITHOUT TAX$1869.16Multiply By TAX RATE 7.00%Equals TAX DUE$ 130.84Column “H” Alb/Bernalillo 02-1001869.16 7.00130.84 7 1 11 12 31 11 222-8888 02-123000-00-0 Taxpayer Owner 1-25-12 Taxpayer
39 New E-Filing Changes August, 2010 – All filers with tax payments due over $20,000 were required to file monthly returns online January, 2011 – All filers with tax payments due over $10,000 were required to file monthly returns online Beginning July, 2011 – All monthly filers will be required to file online regardless of amount due See Publication FYI-108, Electronic Filing Mandate
40 ELECTRONIC FILING www.tax.newmexico.gov Access to: NM WebFile NTTC-Net Taxpayer Access Point (TAP)
41 CRS Filing PIT-Net Tri-Agency Filing –Informational reports for Department of Workforce Solutions, Workers’ Compensation Administration Taxpayer Access Point (TAP) –Business Registration –Account Access Update of Selected Account Information –Payments Assessment, Return or Estimated
43 HI! I’m from Taxation & Revenue… and I’m here to help!
44 Assistance from Taxation & Revenue District Office Customer Service Units (Walk- ins) District Office Taxpayer Assistance Units (Revenue Agents) Call Center Bureau Auditors On-Call CPA Hotline Fraud Hotline
45 Contact Numbers ABQ District Office – (505) 841-6200 ABQ Taxpayer Assist. – (505) 841-6626 Santa Fe District – (505) 827-0827 Roswell District – (575) 627-2900 Las Cruces District – (575) 524-6225 Call Center Bureau – (866) 285-2996 (505) 841-6352 CPA Hotline – (505) 827-0929 Fraud Hotline – (866) 457-6789