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Confusion about New Mexico's gross receipts tax - Ask TaxGuru
 
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Old 03-11-2018, 02:46 PM
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Confusion about New Mexico's gross receipts tax

Hi all, I am new here and not tax savvy at all and I need help with my current situation.

I moved from California to New Mexico in December 2016 to work at a nail salon as a nail technician. I get paid commission on a weekly basis and the owner collects tax for gross receipts on each service performed on a customer on behalf of all employees and file that tax return to the state.

For 2017 tax return, the owner gave me a 1099-MISC form to file. I went to H&R block and they did the filing for me and then informed me that in the state of New Mexico, I have to register for a CRS(Combined Reporting System) ID due to my tax being filed as a 1099-MISC. I didnt know anything about it and so did what I was told and register for a CRS ID. Now, my ID identify me as the owner of the nail salon and is telling me that I am not in compliance and that I have to file gross receipts for the period that I've worked at the nail salon.

What can I do to let the tax department in New Mexico know that I am an employee at the nail salon and that the owner collects tax for each service charged and that money is reported as gross receipts tax, not the employees.

I am honestly really confused by all this because I've never heard of CRS before. It is something unique to this state? I want to be compliant and be a responsible citizen and not break any tax laws here in New Mexico.



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Old 03-12-2018, 04:36 AM
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For 2017 tax return, the owner gave me a 1099-MISC form to file. I went to H&R block and they did the filing for me and then informed me that in the state of New Mexico, I have to register for a CRS(Combined Reporting System) ID due to my tax being filed as a 1099-MISC. I didnt know anything about it and so did what I was told and register for a CRS ID. Now, my ID identify me as the owner of the nail salon and is telling me that I am not in compliance and that I have to file gross receipts for the period that I've worked at the nail salon.

What can I do to let the tax department in New Mexico know that I am an employee at the nail salon and that the owner collects tax for each service charged and that money is reported as gross receipts tax, not the employees.

I am honestly really confused by all this because I've never heard of CRS before. =========>I do not blames your confusion


It is something unique to this state? ====>I guess so; New Mexico's gross receipts tax (in other states it is called as sales/use taxes ) rate varies throughout the state, and in some jurisdictions is more than 8%. The total rate is a combination of all rates imposed by the state, counties and municipalities. Note: New Mexico does not have a sales tax. It has a gross receipts tax instead. This tax is imposed on persons engaged in business in New Mexico.
In almost every case, the person engaged in business passes the tax to the consumer either separately stated or as part of the selling price. Only in its effect on the buyer does the gross receipts tax resemble a sales tax.


I want to be compliant and be a responsible citizen and not break any tax laws here in New Mexico===>As mentioned above;I do not recommend H&R block or liberty tax however instead of them you may directly contact an IRS Enrolled Agent/a CPA doing taxes in your local area for your fed/state returns and accurate professional help.



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