RPD-41287: RPD-41287 2025 Calculation of Estimated CIT Penalty Interest on Underpayment (2025)
New Mexico · New Mexico TRD · Used for tax years 2025
New Mexico Form RPD-41287 calculates quarterly estimated corporate income tax payments and underpayments using Method 4 for 2025. It records estimated tax payments and lets you calculate underpayment penalty and interest or request that the Taxation and Revenue Department calcula
Who files this form
For tax year 2025, corporations subject to New Mexico corporate income tax must make estimated payments if their tax after applicable credits is $5,000 or more. If it is less than $5,000, estimated payments are not required, and you should not file this form.
RPD-41287 is for corporations using Method 4 to reduce underpayment penalty and interest compared with the lowest amount under Methods 1, 2, or 3. Method 4 is available to corporations with tax less credits of $5,000 or more whose income is seasonal or varies throughout the year.
To use Method 4, attach the completed form to your CIT-1 return and mark box 27a on CIT-1, page 2.
When it's due
For tax year 2025, estimated installment payments are due on or before the 15th day of the 4th, 6th, 9th, and 12th months of the corporation’s tax year.
If a due date falls on a Saturday, Sunday, or federal or state holiday, the due date moves to the next business day.
What you'll need
Have these records and details ready to complete the form:
- Your company’s name and federal employer identification number (FEIN).
- Your CIT-1 figures, including the portion of line 10 income earned in each quarter and the portion of line 22 tax due for each quarter.
- Quarterly income and allowable tax credit information.
- Estimated payment records showing each amount, postmark date, and quarter designated when paid.
- Any prior-return carryforward, prior-quarter overpayment applied to another quarter, and tax withheld.
- Any different FEIN used when making a payment.
How to file
- Complete Section 1 for each quarter to calculate the Method 4 installment due and any underpayment.
- Complete Section 2, listing each estimated payment and any carryforward.
- If you want the Department to calculate penalty and interest using Method 4, check the box in Section 3. Complete Sections 1 and 2 only, and leave Section 4 blank. Otherwise, use Section 4 to calculate penalty and interest yourself.
- Mark box 27a on CIT-1, page 2, and attach RPD-41287 to your CIT-1 return.
The supplied text does not give a mailing address or e-filing instructions.
Common mistakes
- Forgetting the Method 4 election: Mark CIT-1 box 27a and attach RPD-41287.
- Leaving Sections 1 and 2 incomplete: If you ask the Department to calculate using Method 4, it needs both sections completed. Otherwise, it will assess penalty and interest using the lowest of Methods 1, 2, or 3.
- Reporting totals that do not match: The total of Section 1, line 8 across all quarters must equal the payments listed in Section 2 and the total estimated payments made or credited for 2025.
- Putting late payments on line 5: Include only timely payments there. Report payments made after the quarterly due date on line 7.
- Completing Section 4 when requesting the Department’s calculation: Leave that section blank if you choose the option in Section 3.
Questions people ask
How does Method 4 calculate each installment?
The installment is 80% of the tax due for that quarter, after applicable credits. 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, mark CIT-1 box 27a, and submit RPD-41287 with CIT-1. You do not need to complete Section 4.
Does tax withheld count as an estimated payment?
Yes. The instructions include tax withheld as an estimated payment. It is generally treated as paid in equal amounts on the quarterly payment due dates unless you establish when all amounts were actually withheld.
What if I made several late payments for one quarter?
When completing Section 4, use a separate column for each late payment or part of a payment applied to that quarter. Add extra columns if needed.