NM E-File Mandate

Pursuant to Section 9-11-6.4 NMSA 1978, the Secretary of Taxation and Revenue issued an e-File mandate on July 30, 2020, for the CIT-1. Effective for tax periods beginning on or after January 1, 2020, every taxpayer filing a CIT-1 is required to electronically file (e-file), unless a taxpayer receives an e-file exception or waiver. For the past two years, the Department has been accepting paper returns as a courtesy during the transition period. However, starting January 1, 2023, the Department will be rejecting paper returns without an e-file exception or waiver. Taxpayers that file a CIT-1 are those that file IRS forms 1120, 1120-H, 1120-F, or 990-T.

Mandatory e-file requirement

The e-file mandate requires business entities that prepare an original or amended return using tax preparation software to e-file their return with the Department. If taxpayer does not use a tax preparation software, or their software is not certified to e-File in New Mexico, then they must file using Taxpayer Access Point (TAP) https://tap.state.nm.us/tap/_/ Call or email us if you need help setting up your TAP login (contact information located at the end of this letter).

Business entity e-file exception and waiver

A taxpayer may request an exception using form RPD-41350, E-File and E-Pay Exception Request. Exceptions are only granted for one tax year at a time. The Department may grant you an exception or waiver to e-file pursuant to Regulation 3.1.4.18 NMAC, due to a reason listed below.

• The taxpayer shows a hardship including no reasonable access to the internet;

• The taxpayer does not have reasonable access to technology required to file electronically;

• The taxpayer does not have the knowledge or expertise to file a return electronically; or

• The taxpayer is unable to utilize technology or the internet for religious reasons.