Just recently resolved a “missing address” problem, and received money for the first time for royalty payments in New Mexico. Understood we have to pay NM state taxes now. (We got a 1099).
As a non-resident, what is required for tax filing?
Do we need a NM tax ID number, or do we just use our Federal EIN# for filing?
Do we have to have a “fictitious name” filed in the state?
Do we have to have a registered agent (physical address) in NM?
If NM is similar to Oklahoma, I believe we would.
FYI - we are a family partnership, residents of Texas.
Anything else we need to know?
Thanks in advance to those of you who may know these answers!
The oil company will be withholding New Mexico State income tax from the royalties for a nonresident owner and that will be noted on 1099. Is the partnership receiving royalty income as owner of the minerals and filing a federal tax return with royalty income going to partners by K-1? Then the partnership will file a New Mexico tax return and allocate the income and NM taxes to the partners. The NM income tax withholding may not be sufficient and the partnership may owe additional NM income tax, which again will be allocated to the partners. It depends on the partnership’s total income vs the NM income and the resulting tax bracket. It can be complicated, particularly since NM has some odd forms. Consider having a CPA help you with the proper filings. I do not think you need a registered agent in NM for a partnership that is a mineral owner. Not sure if your reference to a family partnership is somehow different than a regular partnership or limited partnership. If you are not filing a federal partnership tax return, then you may have to do something else.
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You might have to send to state of NM a copy of your federal tax return. We have to send a copy of our federal tax return to Oklahoma. Definitely hire a CPA.