07/08/2011
CRS-1
New Business Workshop
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Justice Oliver Wendell Holmes, Jr.
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Buying an existing business?
Be sure they are in good standing with the
State

Register with NM
Taxation &
Revenue by applying for a CRS
Business
Tax ID

TO REPRESENT
CLIENT ON
BUSINESS
PERTAINING TO
TAXES
NOTIFY TAXATION
AND REVENUE DEPT
OF AUTHORIZED
REPRESENTATIVE

Where do I
Report
Changes?

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
Front cover – Announcements

Due Dates

Department Office
Locations/Contacts
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GRT Rate Schedule
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CRS-1 Form Written Instructions
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CRS-1 Report Forms
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Other Forms & Information


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.

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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 .

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Gross Receipts Tax
Compensating Tax
Withholding Tax
Cr s -
1 for m

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.
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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

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.
Transactions involving
Non-Taxable Transaction Certificates (NTTCs)

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NMSA 1978 Statute 7-9-43
Nontaxable Transaction Certificate and Other Evidence Required to Entitle
Persons to Deductions.
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•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
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NTTC-NET
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
Get online and get out of line!

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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

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 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.

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).
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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
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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.
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For further information regarding BSC’s, please contact the Border States Caucus. The web site for the Border States
Caucus is: ww.borderstatescaucus.org
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
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

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

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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).
STEP 1:
GROSS RECEIPTS (Including Tax)
TAX RATE (Plus 100)
$2,000.00
Divided By
107.00% Equals
EQUALS GROSS RECIPTS WITHOUT TAX $1,869.16 Column “D”
STEP 2:
GROSS RECEIPTS WITHOUT TAX
TAX RATE
TAX DUE
Example
$1869.16
7.00%
$ 130.84
Multiply By
Equals
Column “H”
Alb/Bernalillo 02-100 1869.16
7 1 11
Taxpayer
Taxpayer
12 31 11
02-123000-00-0
1869.16
7.00
130.84
130.84
222-8888
Owner
130.84
130.84
1-25-12


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
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www.tax.newmexico.gov
Access to:
• NM WebFile
• NTTC-Net
• Taxpayer Access Point (TAP)
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• 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
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Cigarette Excise Tax
Tobacco Products Tax
Enhanced 911 (E911) Surcharge
Telecommunication Relay Services Surcharge (TRS)
Liquor Excise Tax
Local Liquor Tax
Fiduciary Tax
Coal/Uranium Conservation Tax
Severance Tax
Resource Excise Tax
Oil and Gas Withholding
Private Railroad Car Tax
Water Conservation Fee
Fuels
Commercial Vehicle
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Assistance from Taxation & Revenue
• District Office Customer Service Units (Walkins)
• District Office Taxpayer Assistance Units
(Revenue Agents)
• Call Center Bureau
• Auditors On-Call
• CPA Hotline
• Fraud Hotline
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• 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
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