RPD-41287: RPD-41287 2024 Calculation of Estimated CIT Penalty Interest on Underpayment (2024)
New Mexico · New Mexico TRD · Used for tax years 2024
New Mexico Form RPD-41287 calculates 2024 estimated corporate income tax installments and quarterly underpayments using Method 4. It records estimated tax payments and lets you calculate the penalty and interest on underpayments or ask the Taxation and Revenue Department to calcu
Who files this form
For tax year 2024, corporations subject to New Mexico corporate income tax must make estimated payments if their tax after applicable credits is $5,000 or more.
Use RPD-41287 if you qualify for Method 4 and it reduces your underpayment penalty and interest compared with the lowest amount under Methods 1, 2, or 3. Method 4 is available to corporations whose income is seasonal or varies throughout the year and whose current-year corporate income tax after credits is at least $5,000.
If your current-year corporate income tax after credits is less than $5,000, do not file this form. You do not owe quarterly estimated corporate income tax.
When it's due
For tax year 2024, estimated installments are due on the 15th day of the 4th, 6th, 9th, and 12th months of the corporation’s tax year.
For calendar-year taxpayers, the instructions list these 2024 installment dates:
- April 15, 2024
- June 15, 2024
- September 15, 2024
- December 15, 2024
If a due date falls on a Saturday, Sunday, or federal or state holiday, the deadline moves to the next business day.
The text does not give a separate filing date for RPD-41287. It says to attach it to your CIT-1 return.
What you'll need
Have these records and details ready:
- Your company name and federal employer identification number (FEIN).
- Your CIT-1 return, including the quarterly portions of net taxable income from line 10 and net corporate income tax due from line 22.
- Records of applicable tax credits and tax withheld.
- Estimated payment records showing each amount, postmark date, and quarter designated when paid.
- Any carryforward from a previous return.
- Any different FEIN used when making a payment.
If calculating penalty and interest yourself, you also need the installment due dates and late-payment dates.
How to file
- Complete Section 1 for each quarter. Under Method 4, the estimated installment is 80% of that quarter’s net corporate income tax due.
- Complete Section 2 with each estimated payment and any carryforward.
- Either calculate penalty and interest in Section 4 or check the Section 3 box to have the Department calculate them. If you choose the Department’s calculation, complete Sections 1 and 2 and leave Section 4 blank.
- Attach RPD-41287 to your CIT-1 return and mark the Method 4 box on CIT-1, page 2.
The form and repeated instructions identify the CIT-1 box as 27a, but the “Who Must File” paragraph says 26a. The supplied text contains this inconsistency.
No mailing address or e-filing procedure is provided in the supplied text.
Common mistakes
- Leaving Sections 1 or 2 incomplete when requesting the Department’s calculation. Without both completed sections, the Department cannot calculate using Method 4 and will assess penalty and interest using the lowest of Methods 1, 2, or 3.
- Reporting late payments as timely. Line 5 includes only payments made on or before the installment due date. Report late payments on line 7.
- Leaving payment totals unmatched. The total of Section 1, line 8 must equal both the payments made or credited for 2024 and the payments listed in Section 2.
- Combining multiple late payments in one calculation column. Use a separate Section 4 column for each late payment or part of a payment applied to a quarter.
- Overlooking weekends and holidays. The instructions move affected deadlines to the next business day.
Questions people ask
How does Method 4 calculate estimated payments?
Each quarter’s estimated payment is 80% of that quarter’s estimated tax liability. Calculate each quarter separately, not cumulatively.
Can the Department calculate my penalty and interest?
Yes. Check the box in Section 3, complete Sections 1 and 2, and submit the form with CIT-1. You do not need to complete Section 4.
Does tax withheld count as an estimated payment?
Yes. Generally, an equal amount is treated as paid on each quarterly due date unless you establish when all amounts were actually withheld.
Where do I report a carryforward from a previous return?
Include it in the first-quarter installment payment on Section 1, line 5. Also list it in Section 2 and write “carryforward” in column (c).