Understanding CRS Number: Sales Tax in New Mexico

You must be familiar with the term “CRS number” if you operate a business in New Mexico or want to do so. The New Mexico Taxation and Revenue Department tracks and manages sales tax, withholding tax, and other taxes using the CRS, or combined reporting system. This article will define a CRS number and describe how to acquire one. We will also address some frequently asked inquiries about New Mexico’s sales tax and tax filing.

The New Mexico Taxation and Revenue Department issues firms with a CRS number as a distinctive identification. It is employed to keep track of a company’s tax liabilities and payments. If you operate a business in New Mexico, you must apply for a CRS number, collect sales tax on taxable products and services, and then pay the tax. Other tax-related uses for the CRS number include withholding tax and gross receipts tax.

You must go to the Taxpayer Access Point (TAP) on the New Mexico Taxation and Revenue Department’s website to register for a CRS number and sales tax in that state. You must register for an account and enter information about your company, including its legal name, address, and federal tax identification number. Information on the business’s owner or other accountable party must also be provided. You will be given a CRS number and instructions on how to file and pay sales tax after registering.

Payments given to independent contractors or self-employed people are reported using a 1099 form. If you employ a contractor or freelancer to work for your company and pay them more than $600 over the course of a year, you must send them a 1099 form and report the payment to the IRS. The 1099 form, which reports revenue earned by the independent contractor, is a tax form rather than an employment document. Does New Mexico Need to File 1099s?

Yes, New Mexico law compels companies to submit 1099 forms when paying independent contractors or self-employed people. If you paid a contractor $600 or more in a calendar year, you must submit Form 1099-MISC to the New Mexico Taxation and Revenue Department. In New Mexico, 1099 forms must be submitted by January 31 of the following year. Is New Mexico Taxable for Installation Labor?

If installation work is done as part of the sale of tangible personal property in New Mexico, it is usually taxed. For instance, the installation work is taxable concurrently with the sale of the air conditioning unit if you sell and install it for a customer. The installation work, however, is not taxable if all you do is offer installation services and not any sales of tangible personal property.

The New Mexico Taxation and Revenue Department uses a CRS number, a special identification number, to track and manage sales tax and other taxes. If you operate a business in New Mexico, you must apply for a CRS number, collect sales tax on taxable products and services, and then pay the tax. You must also be mindful of the taxability of installation labor and file 1099 forms for payments made to independent contractors. You can speak with a tax expert or visit the website of the New Mexico Taxation and Revenue Department for more information and direction.