In an effort to reduce confusion about which tax deduction codes should be utilized, New Mexico recently announced the removal of several Gross Receipts Tax (GRT) deduction codes within their Taxpayer Access Point system.
Business owners that file their tax returns in the Taxation and Revenue Department’s online Taxpayer Access Point system will see fewer deduction codes listed in the dropdown menu and all the codes will now begin with the letters “DO”.
“The critical piece tax filers need to know is that deductions that don’t appear in the list are still available to be taken. Taxpayers who don’t see them listed may assume that the deductions are no longer available. This could result in them inadvertently paying more gross receipts tax than is actually due if they don’t take deductions that they are entitled to.”
James Ortiz
Principal, State and Local Tax
The slimmed down list of tax deduction codes leaves only those codes that are required by law to be separately reported. New Mexico’s GRT Filer’s Kit is updated each July and contains information regarding available deductions as well as due dates. Publication FYI-105 also provides additional information for the collection, filing, and remittance of Gross Receipts Tax.
We Welcome Your Questions
If you’d like help ensuring that you are correctly filing your New Mexico business taxes and capturing all exemptions and deductions that are due, contact the REDW State and Local Tax (SALT) team today to learn more. We’re ready to assist you.
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