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RPD-41272 (2019)
Rev. 10/01/2019 New Mexico Taxation and Revenue Department
2019 Calculation of Estimated Personal Income Tax Underpayment Penalty
Print your name (first, middle, last) Enter your social security number

HOW TO USE THIS FORM
Complete and submit RPD-41272 only if you are using an exception method to calculate the penalty on underpay-
ment of estimated tax due. If you do not use an exception method, the Taxation and Revenue Department (TRD) calculates
your liability using only the standard method and, if you have a liability, sends you an assessment for penalty due. Exception
methods of calculating estimated tax penalties are described in Section III. To show you qualify for an exception method, you
must also mark the indicator box on New Mexico Personal Income Tax Form PIT-1, line 35. After completing RPD-41272,
attach it to your 2019 PIT-1. If you do not need to file RPD-41272, you may use it to calculate your penalty, but do not sub-
mit the form to the Department. For a complete explanation of calculating estimated personal income tax and how to make
estimated personal income tax payments, see also Publication FYI-320, PIT-ES: Personal Income Tax Estimated Payments.
NOTE: No penalty is imposed if, in Section II, the difference between line 4 in column 2 and the tax withheld and reported
on 2019 PIT-1 for the tax year is less than $1,000. In this case, you do not owe a penalty. Do not file this form.
Section I: Mark the box below that applies to you. Refer to Section III and the descriptions of exceptions on page 2 for
more details.
1. I may use an exception method to calculate estimated tax due because (checkone):

I want to calculate estimated payments based on the actual dates on which all amounts of withholding tax were
withheld for tax year 2019.
My income varied during the year and I was not required to pay estimated personal income tax until
after March 31, 2019(both must be true).
I am a farmer or rancher who expects to receive two-thirds of gross income for 2019 from ranching or
farming, or I have received at least two-thirds of my gross income for the previous tax year from farming
or ranching.

Section II: Calculate your required annual payment.
Enter the amounts from the New Mexico personal income tax forms and schedules for the tax year shown at the top of the
column. If you did not file a full, 12-month New Mexico PIT-1 return for tax year 2018, do not complete Column 1 (2018).

NOTE: If you are a first-year resident in 2019, you are not required to make Column 1 (2018) Column 2 (2019)
estimated payments.

2. In column 1 enter the amount of Net New Mexico Income Tax from 2018
PIT-1, line 22. In column 2 enter the amount from your 2019 PIT-1.
2
3. In column 1, enter the sum of rebates and all credits reported on 2018 PIT-1,
lines 24 and 25. In column 2, enter the sum from 2019 PIT-1, lines 24 and 25.
3
4. Subtract line 3 from line 2 and enter the difference. If the difference be-
tween the amount on this line in column 2 and the income tax withheld on
2019 PIT-1 is less than $1,000, stop here. You do not owe a penalty. Do
not file this form. See note under HOW TO USE THIS FORM at the top
of this page.
4

5. Multiply column 2, line 4 by 0.90 (90%) and enter here. 5

6. Enter the amount of column 1, line 4. If you did not complete column 1 or
if column 1, line 4 is a negative number, enter zero. 6

7. Enter the lesser of lines 5 and 6. This is your required annual payment. 7
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RPD-41272 (2019)
Rev. 10/01/2019 New Mexico Taxation and Revenue Department
2019 Calculation of Estimated Personal Income Tax Underpayment Penalty
Section III: Calculate the amount and due date of estimated tax payments and penalties for Section IV, lines 12 and 13.
8. Line 12 for standard method. If you were required to make estimated tax payments on or before March 31, multiply
the required annual payment in line 7 by 0.25 (25%). Enter this amount in each column of line 12. If you want to calculate
estimated installment payments based on the actual dates on which all amounts of withholding tax were withheld for the
applicable year, go to instruction 11 to complete line 13.
9. Line 12 for income that varies during the year. If you did not have income sufficient to require a payment until after
March 31, read lines 9a,9b , and9c to complete line 12. Then go to instruction 11 to complete line 13.
9a. If you were required to make estimated tax payments after March 31 but before June 1, multiply the required annual payment,
in line 7 by 0.50 (50%) and enter this amount on line 12, column .bMultiply the required annual payment in line 7 by 0.25 (25%)
and enter that amount on line 12, columns c and d.
9b. If you were required to make estimated tax payments after May 31 but before September 1, multiply the required annual
payment in line 7 by 0.75 (75%) and enter that amount on line 12, column c. Multiply the required annual payment in line 7 by 0.25
(25%) and enter that amount on line 12, column d.
9c. If you were required to make estimated tax payments after August 31, enter 100% of the required annual payment in line 7 on
line 12, column d.
10. Line 12 for farmers or ranchers. If you are a qualified farmer or rancher, enter 100% of the required annual payment on
line 12, column dand go to instruction 11 to complete line 13. NOTE: If a qualified farmer or rancher files and pays the
tax in full on or before March 1 of the year following the tax year of the return, no penalty is due. In this case, complete
Sections I through IV of this form and enter zero on page 3, line 34.
11. Line 13 for total withholding tax and estimated tax paid. Divide the tax withheld for the 2019 tax year by four. Add
this amount to the estimated tax you paid for each quarter. In column a, include amounts carried forward from the prior
year PIT-1 return. If you are computing your estimated tax due based on the actual dates when the withholding tax was
withheld, add the amount of tax withheld during the quarter to any amount of estimated tax payments made for the quarter
and any other tax withheld attributable to the quarter.

Section IV: Calculate the underpayment.
Complete lines 12 and 13 by following Section III instructions 8 to 11. Then continue with line 14. Complete lines 14 through
20 for each column before going on to the next column. Leave all shaded fields blank.
Installment due dates. For calendar year taxpayers, the Installment Due Dates
due dates of the installments are entered for you. If you
are a fiscal year filer, strike through the dates and enter a b c d
the correct installment due dates. See WHEN DO YOU 4/15/19 6/15/19 9/15/19 1/15/20
NEED TO PAY ESTIMATED TAXES? on page 5.

12. Enter the required estimated payments for each column.
See Section III instructions 8 through 10. 12
13. Enter the estimated tax paid and tax withheld. See
Section III instruction 11. 13
14. Enter amount of overpayment, if any, from line 20 of
the previous column. 14
15. Add lines 13 and 14, then enter the sum. 15
16. Enter sum of lines 18 and 19 from the previous column.
16
17. For column a, enter the amount from line 13. For col-
umns b, c, and d, subtract line 16 from line 15. If the
difference is zero or less, enter zero. 17
18. If the amount on line 17 is zero, subtract line 15 from
line 16 and enter the amount. Otherwise, enter zero. 18
19. Underpayment. If line 12 is equal to or more than line
17, subtract line 17 from line 12, enter the amount, and
19
go to line 14 of the next column. Otherwise, go to line 20.
20. Overpayment. If line 17 is more than line 12, subtract
line 12 from line 17. Then go to line 14 of the next column.
20
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RPD-41272 (2019)
Rev. 10/01/2019
New Mexico Taxation and Revenue Department
2019 Calculation of Estimated Personal Income Tax Underpayment Penalty
Mark this box if you want the Taxation and Revenue Department to calculate the penalty on underpayment of estimated
personal income tax that you owe. If you mark this box, you do not need to complete Section V or VI. However, you
must complete Sections I through IV or the Department cannot calculate your penalty using an exception method to
calculate estimated tax and you may be assessed a penalty based only on the standard method. If you want to calculate
the penalty yourself, continue with Section V, and VI as necessary.

Section V: Calculate the penalty you owe on underpayment of estimated installment payments. At the top of the column
indicate the Quarter (1, 2, 3 or 4) in which an underpayment occurred from line 19, Section IV. If you have multiple late payments
in one quarter, add extra columns for the quarter. For example, if you made two payments after the first quarter was due, use
the first two columns a and b, and enter 1 next to “Quarter” at the top of each column. Calculate each late payment for a quarter
in a separate column. For additional columns, use Section VI. When completing line 21 for subsequent columns in one quarter,
subtract the previous payment for the quarter from the underpayment of estimated tax for the quarter (line 19, Section IV).

___ Quarter ___ Quarter ___ Quarter ___ Quarter
a b c d
21. Enter the underpayment of estimated tax for the quarter from
line 19, Section IV. If more than one payment is made for a
quarter, reduce this line by the payment made in the other
column for that quarter. 21

22. Enter the due date of the installment from the table in Section IV. 22

23. Enter the date the underpayment on line 21 was paid or the
15th day of the fourth month after the close of the tax year,
whichever is earlier. For details, see HOW INSTALLMENT
PAYMENTS ARE APPLIED on page 6. 23

24. Enter the number of days from the installment due date (line
22) to the date on line 23. 24

25. Number of days on line 24 after 4/15/2019 and before 7/1/2019. 25

26. Underpayment on line 21 X number of days on line 25 X ___%6 =
365
26

27. Number of days on line 24 after 6/30/2019 and before 10/1/2019. 27

5
28. Underpayment on line 21 X number of days on line 27 X ___% = 28
365

29. Number of days on line 24 after 9/30/2019 and before 1/1/2020. 29

30. Underpayment on line 21 X number of days on line 29 X ___%5 =
365 30

31. Number of days on line 24 after 12/31/2019 and before 4/15/2020. 31

32. Underpayment on line 21 X number of366days on line 31 X ___% = 32

33. For each column, add lines 26, 28, 30, and 32 then enter the
sum. 33

34. Add columns a through h of line 33 in Sections V and VI, and enter the total.This is
your total penalty on underpayment of estimated income tax. 34
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RPD-41272 (2019)
Rev. 10/01/2019 New Mexico Taxation and Revenue Department
2019 Calculation of Estimated Personal Income Tax Underpayment Penalty

Section VI: Calculate the penalty you owe on underpayment of estimated installment payments. Continued from Section
V. At the top of the column indicate the Quarter (1, 2, 3 or 4) in which an underpayment occurred from line 19, Section IV.

If you have multiple late payments in one quarter, add extra columns for the quarter. For example, if you made two payments
after the first quarter was due, use the first two columns a and b, and enter 1 next to “Quarter” at the top of each column.
Calculate each late payment for a quarter in a separate column. When completing line 21 for subsequent columns in one
quarter, subtract the previous late payments for the quarter from the underpayment of estimated tax for the quarter (line 19,
Section IV).

___ Quarter ___ Quarter ___ Quarter ___ Quarter
e f g h
21. Enter the underpayment of estimated tax for the quarter from
line 19, Section IV. If more than one payment is made for a
quarter, reduce this line by the payment made in the other
column for that quarter. 21

22. Enter the due date of the installment from the table in Section IV. 22

24. Enter the number of days from the installment due date (line
22) to the date on line 23. 24

25. Number of days on line 24 after 4/15/2019 and before 7/1/2019. 25

26. Underpayment on line 21 X number of days on line 25 X ___%6 =
365
26

27. Number of days on line 24 after 6/30/2019 and before 10/1/2019. 27

28. Underpayment on line 21 X number of days on line 27 X ___%5 =
365 28

29. Number of days on line 24 after 9/30/2019 and before 1/1/2020. 29

30. Underpayment on line 21 X number of days on line 29 X ___%5 =
365 30

31. Number of days on line 24 after 12/31/2019 and before 4/15/2020. 31

32. Underpayment on line 21 X number of366days on line 31 X ___% = 32

33. For each column, add lines 26, 28, 30, and 32 then enter the
sum. 33

Add columns a through h of line 33 in Sections V and VI, and enter the total on PIT-1, Sec-
tion V, line 34. This is your total penalty on underpayment of estimated income tax.
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RPD-41272 (2019)
Rev. 10/01/2019
New Mexico Taxation and Revenue Department
2019 Calculation of Estimated Personal Income Tax Underpayment Penalty
Instructions

WHO MUST PAY ESTIMATED TAXES AND WHAT PIT-1. If the box is blank, the penalty is calculated using the
PENALTIES APPLY? standard method.
Every individual who must file a New Mexico Personal
Income Tax (PIT-1) return under the Income Tax Act also When the Department uses the standard method. The
must pay estimated income tax. This occurs through with- Department automatically calculates your penalty using the
holding taxes or by making estimated tax payments using standard method and sends you an assessment for the pen-
the Personal Income Estimated Tax Payment Voucher alty due if any of the following are true:
(PIT-ES). You can also pay by check or credit card using • You fail to, or incorrectly complete the box on PIT-1, line
the Taxation and Revenue Department’s website. 34.
• You do not submit form RPD-41272, with your PIT-1 return.
There is a penalty for underpayment or nonpayment of
estimated tax, unless: • You submit an incomplete or inaccurate RPD-41272.
• You are a first-year resident; • You do not qualify for an exception method.
• Your tax for the current year, less total rebates and
DESCRIPTIONS OF EXCEPTIONS, NUMBER TO ENTER
credits, less income tax withheld is under $1,000; or
IN ON PIT-1, AND HOW TO CALCULATE ENTRIES FOR
• You are a full-year New Mexico resident whose previ- LINES 12 AND 13 ON RPD-41272
ous tax year was a 12-month tax year and you owed Each exception is described here. The last paragraph of each
zero tax for that tax return. description shows the number you must enter in the box on
PIT-1, line 34, to indicate your qualification for the exception
WHEN DO YOU NEED TO PAY ESTIMATED TAXES? method. Section III of RPD-41272 provides instructions for
For most calendar-year taxpayers, four installments of the completing lines 12 and 13 in Section IV, which are critical in
required annual payment are due (postmark or delivery calculating penalties based on exceptions.
service date) by April 15, June 15, September 15, and
January 15. Exception for applying actual tax withholding dates. This
exception applies to taxpayers who estimate payments ac-
For taxpayers reporting on a fiscal year other than a cording to the actual dates when all amounts of withholding
calendar year, payments are due on or before the 15th tax were withheld for the applicable tax year.
day of the fourth, sixth, and ninth months of the tax year
and on or before the 15th day of the first month of the NOTE: Unless you show the dates on which all amounts were
following year. actually withheld on RPD-41272, the Taxation and Revenue
Department considers an equal amount of tax withheld as
Sometimes a due date for an estimated payment is a tax paid on each payment due date. This provision may apply
Saturday or a Sunday, or a state or national legal holiday. separately to wage and pension withholdings and any other
The estimated payment is on time when the postmark amounts withheld under the Withholding Tax Act.
bears the date of the next business day. Delivery by a
private delivery service is on time if the pick-up date is Enter 1 if you want to calculate estimated payments based
on or before the required due date. on the actual dates on which all amounts of withholding tax
were withheld for the applicable tax year.
WHO MUST FILE RPD-41272
RPD-41272 can be used to help calculate the underpay- Exception for income that varies during the year. This
ment penalty, but do not submit the form unless: exception applies to taxpayers who receive seasonal income.
• You qualify for a exception method of determining the You may only use this method if actual income through March
amount and timing of the estimated tax payment, and 31 is too small to require an estimated payment. When your
• You will owe less penalty by using the exception base income increases in later periods, you must make higher
method. estimated payments to balance your account.

Only taxpayers who may lower their penalty using an No payment is due for the first quarter, because actual income
exception method submit RPD-41272. through March 31 is too small to require an estimated pay-
ment. Subsequent test dates to check income for estimated
To calculate an underpayment or non-payment penalty payments are May 31, August 31, and December 31.
using the exception method for estimated personal income
tax, you must enter 1, 2, 3, 4, or 5 in the box on line 34,

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RPD-41272 (2019)
Rev. 10/01/2019 New Mexico Taxation and Revenue Department
2019 Calculation of Estimated Personal Income Tax Underpayment Penalty
Instructions

Enter 2, 3, or 4 to show the quarter of the payment if your Section II. Calculate your required annual payment as de-
income varies and you are required to file estimated pay- scribed in lines 2 to 7. Line 7 shows your required annual
ments beginning with the 2nd, 3rd, or 4th quarter due date. payment.

Exception for farmers and ranchers. The law provides a Section III. These are the instructions for lines 12 and 13
special rule, identical to the federal rule, for farmers and in Section IV. For line 12, use instructions 8, 9, and 10 to
ranchers who expect to receive at least 2/3 of their gross calculate the amount of the estimated tax payments you
income from farming or ranching, or who received at least owe on different dates. For line 13, use instruction 11 to
2/3 of their gross income from farming or ranching in the show the total withholding tax and estimated taxes you paid.
prior year.
Section IV. After completing lines 12 and 13 for all four
Farmers and ranchers who meet the gross income test may: columns, go to column aand complete lines 17, 19, and 20.
• Make one estimated payment in the amount of the re- Then go to columns b and c and complete lines 14 to 20. In
quired annual payment on or before January 15 of the column d, complete lines 14 to 17, 19, and 20.
year following the tax year of the return, or
Requesting the Department to Calculate the Penalty.
• File and pay taxes in full on or before March 1 of the year
Mark the box at the top of the page of Section V, if you want
following the tax year of the return.
the Department to calculate the penalty on underpayment of
estimated personal income tax that you owe. If you mark the
For joint returns, the farmer or rancher must count the
box, you do not need to complete Section V or VI. However
spouse’s gross income to determine whether the couple
you must complete Sections I through IV, or the Department
meets the two-thirds-of-gross income test.
cannot calculate your penalty using an exception method.
Enter 5 if you are a farmer or rancher and meet these
Sections V and VI. Calculate your penalty payment for each
requirements. Even if you do not owe an underpayment
quarter in a separate column as described in lines 21 to 34.
penalty because you filed and paid the tax in full on or be-
At the top of the column indicate the Quarter (1, 2, 3 or 4) in
fore March 1 of the year following the tax year of the return,
which an underpayment occurred from line 19, Section IV.
make this entry.
Multiple Payments For a Quarter
HOW MUCH DO YOU NEED TO PAY?
If you have multiple late payments for any quarter, add ex-
To calculate your estimated tax, start with the required an-
tra columns for the quarter. For example, if you made two
nual payment or the total amount of estimated tax to pay
payments after the first quarter payment was due, use the
during the tax year. Then determine the amount and due
first two columns, a and b, and enter 1 next to “Quarter” at
date for each estimated tax payment.
the top of each column. Calculate each late payment for a
quarter in a separate column. For additional columns, use
The required annual payment is the lesser of:
Section VI.
• 90% of the tax on the current year’s return (or, if no return
is filed, the tax for the taxable year), or
When completing line 21 for subsequent columns in the
• 100% of the tax on the prior year’s return, if you filed a same quarter, subtract the previous payment(s) for the quar-
return during the prior year for a full 12-month year. ter from the underpayment of estimated tax for the quarter
(line 19, Section IV). In Section V, line 34 enter your total
NOTE: Always use the instructions specifically written penalty on underpayment of estimated income tax.
for the tax year you are filing. The line numbers and the
calculation of estimated tax may change from year to year. HOW INSTALLMENT PAYMENTS ARE APPLIED
The Department credits a payment of estimated tax against
HOW TO COMPLETE THIS FORM unpaid or underpaid installments in the order in which the
If have an exception and you want the Department to calcu- installment is required to be paid. Therefore, an installment
late the penalty for you, complete Sections I through IV and payment is applied first to the earliest installment payment
mark the box at the top of page 3. If you want to calculate due. Any balance is applied to the next installment pay-
the penalty yourself, also complete Section V, and if ap- ment due.
plicable, Section VI.
PENALTY TIME FRAMES
Section I. If you qualify for one of the exception methods, The penalty for underpayment or non-payment of estimated
mark the appropriate box. tax is based on the difference between the estimated tax
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RPD-41272 (2019)
Rev. 10/01/2019 New Mexico Taxation and Revenue Department
2019 Calculation of Estimated Personal Income Tax Underpayment Penalty
Instructions

payment and the actual amount of estimated tax due. Pay online. You may submit a payment with the payment
Penalty accumulates from the due date of the estimated voucher by mail or pay estimated personal income taxes
tax payment until the earlier of: online at no charge by electronic check through Taxpayer
• The date the payment is made, or Access Point (TAP). Go to https://tap.state.nm.us and under
• The 15th day of the fourth month following the close of GENERAL TASKS, click Make a Payment, then Individual.
the tax year. The electronic check authorizes the Department to debit
your checking account in the amount and on the date you
PENALTY BASED ON INTEREST RATES specify.
New Mexico calculates penalty in the form of interest on un-
derpayment of estimated tax. The penalty is calculated at the You may also a credit card for your online payment. A con-
annual rate established each quarter for individual income venience fee is applied for using a credit card. The State
tax purposes under the U.S. Internal Revenue Code (IRC). of New Mexico uses this fee, calculated on the transaction
amount, to pay charges from the credit card companies.
IRC rate changes quarterly. The Internal Revenue Service
announces the IRC rate for each quarter in the last month
Pay by mail. You can pay by mail by sending a check or
of the previous quarter. You can check the interest rates for
money order for the payment amount to the Department
each quarter on our website at http://www.tax.newmexico.
along with the PIT-ES payment voucher. To pay by mail,
gov/Individuals/penalty-interest-rates.aspx.
follow the voucher and mailing requirements described next.
Special rule for personal income tax. When calculating
USING THE PIT-ES PAYMENT VOUCHER
the underpayment penalty, the interest rate that applies to
You can get the PIT-ES voucher from your personal income
the first quarter following the tax year also applies to the first
tax packet, the Department website, one of the Depart-
15 days of the fourth month (April) following the tax year.
ment’s district offices, or from your tax return preparation
software.
CALCULATION OF PENALTY FOR PERIOD LATE
The formula used in lines 26, 28, 30, and 32 of Sections V
Show the correct tax year for this payment. For the
and VI to calculate the penalty for the period late is:
Department to apply your estimated payment to the correct
effective annual tax year, the PIT-ES must show the tax year for which you
Underpay- X number of days late X interest rate are making payment. On the payment voucher from the
ment due total days in the year for the quarter Department website, write in the tax year. Make sure each
payment voucher shows the correct tax year.
NOTE: The penalty for underpayment of estimated tax may
exceed 20% of the tax due. If you are a calendar-year filer making an estimated payment
for a 2019 tax return due in 2020, make sure the date on
HOW TO AVOID A PENALTY your PIT-ES payment voucher shows tax year 2019. If you
If you file a return and pay the full amount on or before wish to make an estimated payment for your 2020 tax return
January 31 of the next year, no penalty applies to the 4th due in 2021, the date on your PIT-ES payment voucher must
estimated payment. indicate tax year 2020.

If the balance due is $1,000 or more, the Taxation and Final steps for mailing your penalty payment. On the
Revenue Department determines whether the required check or money order, write:
annual payment was made in timely installments. If it was, • Your social security number
there is no penalty. • PIT-ES
• The tax year of the return for which the payment applies
If the required annual payment was not made in timely
installments, the Department calculates the underpayment
penalty and issues an assessment. If you believe an as- Using your own envelope, enclose the check or money
sessment is in error, you can protest the assessment and order, and the completed PIT-ES payment voucher. Mail
provide more information. the envelope to:
NM Taxation and Revenue Dept.
METHODS OF PAYMENT P.O. Box 8390
You can pay online using an electronic check or credit card, Santa Fe, NM 87504-8390
or by mail using a check or money order.

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