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RPD-41287 (2021) New Mexico Taxation and Revenue Department
Rev. 10/01/2021
2021 Calculation of Estimated Corporate Income Tax — Method 4
Penalty and Interest on Underpayment (page 1 of 4)
PURPOSE OF THIS FORM: If you calculate estimated corporate income tax payments using Method 4, pursuant to Section 7-2A-9.1 NMSA 1978, and by using
Method 4, you can reduce the amount of penalty and interest on the underpayment of estimated corporate income tax you owe instead of using the lower of Method 1, 2,
or 3, complete this form and attach it to your CIT-1 return. For more information on the methods and whether your corporation qualifies to use Method 4, see Determine
The Amount Of Your Quarterly Estimated Tax Payment and Restrictions On Methods Of Computing The Installment Payment Due on page 3 of the instructions.
To use Method 4, you must also mark the box on CIT-1, page 2, line 19a. If you don’t need to use Method 4, don’t attach this form and don’t mark box 19a on CIT-1, page
2. The Department will compute any underpayment penalty and interest due, if any, using the lower of Method 1, 2, or 3 and issue you an assessment of penalty and
interest for underpayment of estimated tax.
Print your company’s name Enter your federal employer identification number (FEIN)

Section I. Calculate the estimated installment payment due for each quarter using Method 4 and calculate the underpayment for each quarter. Using the instructions for
this form, complete the schedule below to calculate underpayment of estimated corporate income tax. Complete lines 1 through 8 for each quarter of your tax year.

NOTE: If your corporate income tax less credits for the current taxable year is less 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter
than $5,000, don’t file this form. You don’t owe quarterly estimated tax. (a) (b) (c) (d)

1. For each quarter, enter the due date of the quarterly estimated installment tax
payment. Use the 4th, 6th, 9th, and 12th month of the corporation’s tax year.
1.

2. Enter the New Mexico net taxable income earned in the corresponding quarter.
(The portion of CIT-1, line 9, earned in each quarter.) 2.

3. Enter the net New Mexico corporate income tax due (the portion of CIT-1,
line 14) for the corresponding quarter. If less than zero, enter zero. 3.

4. For each quarter, multiply line 3 by 80% (0.80) and enter here. This is the 4.
estimated installment tax payment due.

5. For each quarter, enter the estimated tax payments made on or before the due
date of the installment tax payment. Include payments of tax withheld. See the 5.
instructions.

6. Subtract line 5 from line 4 and enter here. This is the underpayment for the
quarter as of the due date of the installment tax payment. 6.

7. For each quarter, enter any estimated tax payments made after the due date 7.
of the installment tax payment.

8. Add lines 5 and 7 and enter here. This is the total estimated tax paid for the
current quarter. 8.

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RPD-41287 (2021)
Rev. 10/01/2021 New Mexico Taxation and Revenue Department
2021 Calculation of Estimated Corporate Income Tax — Method 4
Penalty and Interest on Underpayment (page 2 of 4)

Section II. List each estimated tax payment made. Complete the list below recording the amount of each estimated tax payment and the postmark date of
each estimated tax payment. Include any carryforward from a previous return. In column (c), enter the quarter paid as indicated with the payment. If the payment
was a carryforward from the prior-year return, write carryforward. If the federal employer identification number (FEIN) used at the time of the payment is different
from the number on your income tax return, enter the federal employer identification number (FEIN) indicated at the time of payment. The sum of estimated tax
payments in Section I, line 8, must equal the estimated tax payments listed below.

(a) (b) (c) (d)
Indicate the quarter paid as reported at the time of the
Amount of payment Postmark date payment or whether the payment is from a carryforward FEIN, if different

Section III. Option to have the Department compute the penalty and interest on underpayment of estimated corporate income tax using Method 4.

Mark this box if you want the Department to compute the penalty and interest on underpayment of estimated corporate income tax using Method 4. You must submit completed
Sections I and II or the Department can’t calculate your penalty and interest using Method 4, and penalty and interest will be assessed based on the lower of Methods 1, 2, or 3.

To compute the penalty and interest on underpayment of estimated corporate income tax, continue to the next page.

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RPD-41287 (2021)
Rev. 10/01/2021 New Mexico Taxation and Revenue Department
2021 Calculation of Estimated Corporate Income Tax — Method 4
Penalty and Interest on Underpayment (page 3 of 4)
Section IV: Compute the penalty and interest on underpayment of estimated installment payments. Complete this section to calculate the penalty and interest
you owe. At the top of the column indicate the quarter (1, 2, 3, or 4) in which an underpayment occurred from Section I, line 6. If you have multiple late payments in one
quarter, add extra columns for each payment or part of a payment that was applied to the quarter. Calculate each late payment for a quarter in a separate column. See the
instructions for more information. __ Quarter__ Quarter__ Quarter__ Quarter __ Quarter __ Quarter __ Quarter __ Quarter
(a) (b) (c) (d) (e) (f) (g) (h)
9. Enter the underpayment of estimated tax for the quarter indicated
at the top of the column, from Section I, line 6. 9.

10. Enter the due date of the installment from Section I, line 1. 10.

11. Enter the date of the payment or the due date of the return, whichever
is earlier (see instructions). Include only payments made after the
due date of the installment payment, included on line 7, Section I. 11.

12. Number of days from the due date of the installment (line 10) to the
date shown on line 11. 12.

13. Number of days on line 12, after 4/15/2020 and before 7/1/2020. 13.

14. Underpayment on line 9 XNumber of days on line 13 X ____%5 = 14.
366

15. Number of days on line 12, after 6/30/2020 and before 10/1/2020. 15.

16. Underpayment on line 9 XNumber of days on line 15 X ____%3 = 16.
366

17. Number of days on line 12, after 9/30/2020 and before 1/1/2021. 17.

18. Underpayment on line 9 XNumber of days on line 17 X ____%3 = 18.
366

19. Number of days on line 12, after 12/31/2020 and before 4/1/2021. 19.

20. Underpayment on line 9 XNumber of days on line 19 X ____%3 = 20.
365

(continue on the next page)

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RPD-41287 (2021)
Rev. 10/01/2021                                                 New Mexico Taxation and Revenue Department
                             2021 Calculation of Estimated Corporate Income Tax — Method 4 
                                                                Penalty and Interest on Underpayment (page 4 of 4)
Section IV: continued
                                                                             __ Quarter__ Quarter__ Quarter__ Quarter __ Quarter __ Quarter __ Quarter __ Quarter
                                                                                (a)       (b)       (c)       (d)        (e)        (f)        (g)        (h)

21. Number of days on line 12 after 3/31/2021 and before 7/1/2021.      21.

22. Underpayment on line 9 XNumber of days on line 21 X ____ 3  % =     22.
                                                             365
                                                                        23.
23. Number of days on line 12, after 6/30/2021 and before 10/1/2021. 

24. Underpayment on line 9 XNumber of days on line 23 X ____% 3    =    24.
                                     365

25. Number of days on line 12, after 9/30/2021 and before 1/1/2022.     25.

26. Underpayment on line 9 XNumber of days on line 25 X ____% 3    =
                                     365                                26.

27. Number of days on line 12, after 12/31/2021 and before 4/1/2022.    27.

28. Underpayment on line 9 X Number of days on line 27 X ____% =
                                     365                                28.

29. For each column, add lines 14, 16, 18, 20, 22, 24, 26, and 28. 
                                                                        29.

30. Add line 29, columns (a) through (h) and enter the total here. This
   is your total interest on underpayment of estimated income tax.       30.       
31. Penalty. Multiply the underpayment from line 9 by the number of 
    months or partial months that the payment was not made by 0.02, 
    not to exceed 20% of the amount of underpayment. A month  
    begins on the day after the due date of the installment payment     31.
    and ends on the 15th of each subsequent month.
32. Total Penalty. Enter the sum of columns (a) through (h) on line 31. 
    This is the total penalty due on underpayment of estimated  
                                                                        32.
    corporate income tax.

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WHO MUST FILE Line 2. Enter the New Mexico net taxable income earned in the corresponding
Every corporation subject to the corporate income tax shall pay estimated corporate quarter. The New Mexico net taxable income for each quarter is the portion of the
income tax if its tax after applicable credits is $5,000 or more in the current tax amount entered on CIT-1, line 9, earned in the applicable quarter. The amount is
year. If the taxable liability for the tax year is less than $5,000, estimated corporate the net taxable income earned for the quarter, before applying the New Mexico
income tax payments aren’t required. percentage.

Estimated penalty and interest are assessed on the difference between the Line 3. For each quarter, enter the net New Mexico corporate income tax due for
estimated payments and the amount of estimated tax due, computed using the the corresponding fiscal quarter (CIT-1, page 2, line 14). If less than zero, enter
lower of Method 1, 2, 3, or 4. The Department automatically computes estimated zero. The corporate income tax due for each quarter is based on the income
payments using the lower of Methods 1, 2, or 3. To use Method 4, you must attach earned during the fiscal quarter after applying the New Mexico percentage, less
a completed RPD-41287,2021 Calculation of Estimated Corporate Income Method allowable credits.
4 Tax Penalty and Interest on Underpayment, and mark box 19a on CIT-1, page 2.
Line 4. To complete line 4 for each quarter, multiply line 3 of the corresponding
For a description of Methods 1, 2, 3, and 4 for calculating the underpayment penalty column by 80% (0.80). This is the estimated installment tax payment due.
and interest, see Determine The Amount Of Your Quarterly Estimated Tax
Payment on page 3 of these instructions. See also the instructions for CIT-ES, Line 5. Record the sum of all timely estimated tax payments made or credited to
Corporate Income and Franchise Estimated Tax Payment Voucher. each quarter, not to exceed the underpayment reported on line 4. Include only
payments made on or before the due date of the installment payment. Include
HOW TO COMPLETE THE FORM any carryforwards from previous tax year returns in the first quarter installment
Section I: Calculate the estimated installment tax payment due for each payment. Include overpayments of a prior quarter installment payment that’s
quarter using Method 4 and calculate the underpayment for each quarter. applied to the current installment payment. Also include tax withheld. Include only
Calculating estimated tax using Method 4 requires that you compute corporate timely installment payments made on or before the date the installment payment is
income tax due, net of any tax credit applied to the tax due, for each quarter of due (line 1). Report payments made after each quarterly due date for the current
the current taxable year. The amount of the installment tax payment due for each quarter on line 7.
quarter is 80% of the tax due for that quarter. The installment tax payments are
due on or before the 15th day of the 4th, 6th, 9th, and 12th month of the tax year. How Installment Payments Are Applied
An installment payment of estimated tax is first applied to the quarter as directed
Requesting the Department to calculate penalty and interest on underpayment by the taxpayer. You can only apply an overpayment of an installment payment to
of estimated corporate income tax using Method 4. If you want the Department a prior quarter or a later quarter installment payment when it exceeds the amount
to compute the penalty and interest on underpayment of estimated corporate due for the quarter indicated on the payment.
income tax using Method 4, mark the box in Section at the bottom of RPD-41287.
Next, complete Sections I and II only, and then mark the box on CIT-1, page 2, Including Tax Withheld
line 19a, and submit RPD-41287 with your 2021 CIT-1. The amount of tax withheld under the Withholding Tax Act [Section 7-3-1 NMSA
1978] or the Oil and Gas Proceeds and Pass-Through Entity Withholding Tax
Line 1. For each quarter enter the due date of the quarterly estimated installment Act [Section 7-3A-1 NMSA 1978] shall be deemed a payment of estimated tax.
tax payment. Enter the 15th day of the 4th, 6th, 9th, and 12th month of the tax An equal amount of the tax withheld is deemed paid on each quarterly payment
year. If the due date falls on a Saturday, Sunday, or state or national legal holiday, due date unless the taxpayer establishes the dates on which all amounts were
the due date is the next regular work day. For 2021 calendar-year taxpayers, the actually withheld, in which case the amounts withheld shall be deemed payments
due dates are Apr.15, 2021; June 15, 2021; Sept.15, 2021; and Dec. 15, 2021. of estimated tax on the due dates on which the amounts were actually withheld.

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Line 6. Calculate any underpayment as of the due date of the installment tax quarter. Calculate each late payment for a quarter in a separate column. If no
payment for each quarter by subtracting line 5 from line 4. underpayment of estimated tax payment is recorded on Section I, line 6, for a
quarter, you don’t need to complete a column for that quarter.
Line 7. Record the sum of all estimated installment tax payments made against
each quarter that was paid after the due date of the installment tax payment. Line 9. Enter the underpaid amount of the estimated installment payment due as
of the due date of the installment payment (from Section I, line 6). Do this even
Line 8. For each column, add the amounts on lines 5 and 7. Make sure the total if multiple late payments have been made for the quarter listed at the top of the
of all line 8 columns equals the total estimated tax payments made or credited column. If multiple payments were made after the due date of the installment
for the 2021 tax year and also equals the sum of all estimated payments listed payment for any quarter, enter each late payment for a quarter in a separate column.
in Section II.
When completing line 9 for subsequent columns for the same quarter, subtract the
Section II: List each estimated tax payment made or credited to tax year 2021. previous late payment(s) for the quarter from the underpayment for the quarter as
Enter the amount of each estimated tax payment made and the postmark of the of the due date of the installment tax payment. If a late payment for this quarter
payment. If it was a carryforward from a previous tax return, enter carryforward has not been made, or is paid in one payment, enter the underpayment for the
in column (c), and indicate the quarter for which the estimated tax payment was quarter from Section I, line 6.
made. Enter 1, 2, 3, or 4, as originally indicated on the payment voucher. If one
or more payments were submitted to the Department under an incorrect federal Line 10. Enter the date the installment payment was due (from Section I, line 1).
employer identification number (FEIN), provide the FEIN as originally submitted
with the payment. Line 11. Enter the date the late installment payment was made or the due date
of the return, whichever is earlier. Include only payments made after the due date
Section III: Option to have the Department to compute the penalty and interest of the installment payment.
on underpayment of estimated corporate income tax using Method 4. If you
want the Department to compute the penalty and interest on underpayment of General Instructions For Lines 12 Through 30, Columns (a) Through (h)
estimated corporate income tax using Method 4, mark the box in Section III at the Lines 13, 15, 17, 19, 21, 23, 25, and 27. Enter the number of days from the
bottom of RPD-41287, page 2. Next, complete Sections I and II only, and then beginning of the calculation period to the date the underpayment was paid or
mark the box on CIT-1, page 2, line 19a, and submit RPD-41287 with your 2021 the last day of the calculation period, whichever is earlier. The calculation period
CIT-1. You don’t need to complete Section IV. is defined on the form. For example, line 13, identifies the calculation period as
after 04/15/2021 and before 07/01/2021. The calculation periods coincide with
Section IV: Compute the penalty and interest on underpayment of estimated calendar year quarters.
installment tax payments. Don’t complete this section if you want the Department
to compute the penalty and interest on underpayment of estimated corporate Lines 14, 16, 18, 20, 22, 24, 26, and 28. Calculate interest due during the
income tax. Please mark the box in Section III and follow the directions for filing calculation period by performing the computation as indicated on the form. If the
this form. annual interest rate is blank, then the annual interest rate for the quarter was not
announced by the IRS when this form was published. Check the Department
At the top of the column, indicate the quarter (1, 2, 3, or 4) of an underpayment website for a current list of the applicable interest rates. The IRS doesn’t announce
from Section I, line 6. If you have multiple late payments in one quarter, add interest rates until the month prior to the beginning of each quarter.
extra columns for each payment or part of a payment that was applied to the

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Line 29. For each column, add lines 14, 16, 18, 20, 22, 24, 26, and 28 and enter the current tax year is due.
the sum in the respective column. • Method 4. 80% of the estimated tax liability for each quarter of the current tax
Line 30. Enter the sum of line 29, columns (a) through (d). This is the total interest year calculated on a period-by-period basis, not accumulative.
on underpayment of estimated income tax.
When using Methods 1, 2, or 3, estimated tax must be paid in four installments
Lines 31 and 32. Compute the penalty on underpayment of estimated equal to 25% of the estimated tax. Method 4 requires an installment of 100% of
installment payments. If you want the Department to compute the penalty and
the estimated tax payment calculated for the quarter.
interest on underpayment of estimated corporate income tax using Method 4,
mark the box in Section III, at the bottom of RPD-41287, page 2. Next, complete Use the corporate income tax rates in the Instructions for Form CIT-1, page 13,
Sections I and II only, and then mark the box on CIT-1, page 2, line 19a, and to estimate your income tax liability.
submit RPD-41287 with your 2021 CIT-1. You don’t need to complete Section IV.
Restrictions On Methods Of Computing The Installment Payment Due
Line 31. Multiply by 0.02 the underpayment from line 9 of the corresponding
column by the number of months or partial months* within the calculation period • Method 2. Use only (a) if a corporate tax return was filed for the immediate
that the underpayment was unpaid. The calculation period for computing penalty prior year, and (b) such prior year was a full 12-month or a 52/53-week year.
is the period on RPD-41287, page 3, between lines 10 and 11. The formula for • Method 3. Use only if the tax year immediately preceding the previous tax year
computing penalty is: was a full 12-month year, the return for the previous tax year hasn’t been filed,
Underpayment x number of full/partial months x 0.02 and the extended due date for filing that return hasn’t occurred at the time the
first installment is due.
* Compute the number of full/partial months within the calculation period that the
underpayment on line 9 remains unpaid. To calculate months or partial months, • Method 4. Taxpayers whose corporate income tax less credits for the
current tax year is $5,000 or greater and whose income is seasonal or varied
begin counting on the day after the due date of the estimated installment tax
throughout the year may use Method 4 to adjust required payments due for
payment. Payments received the day after the due date of the installment tax
each fiscal quarter based on actual income received. If you owe penalty and
payment are paid one partial month late. Add one month for each 15th of the
interest on underpayment of estimated corporate income tax using the lowest of
month that passes before the payment is made. Don’t count months or partial
Methods 1, 2, or 3, and Method 4 applies, you may further lower the amount
months after the due date of the return.
of penalty and interest you owe by using Method 4.
Line 32. Enter the sum of line 31, columns (a) through (h). This is the total penalty
on underpayment of estimated income tax.

Determine The Amount Of Your Quarterly Estimated Tax Payment
To avoid penalty and interest for underpayment of estimated tax, calculate the
estimated tax by one of the following methods:
• Method 1 .80% of the current year’s estimated tax liability.
• Method 2. 100% of the previous year’s tax liability, if it’s a full 12-month year.
• Method3. 110% of the liability for the year immediately preceding the previous
tax year, if it’s a full 12-month tax year and the return for the previous tax year
hasn’t been filed, and the extended due date for filing the return for the previous
tax year hasn’t occurred at the time the first estimated payment installment of

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