The New Mexico Taxation and Revenue Department is redesigning its Combined Reporting System (CRS) to create separate returns for withholding, gross receipts, and compensating taxes. The changes are expected to be phased in starting in July 2021.
The first phase will create forms that are intended to make it easier for taxpayers to manage their accounts. It also is expected to increase internal automation and expedite the processing of refunds.
According to the department, the Combined Reporting System was originally intended to streamline filing for business taxpayers, but in practice, it often has resulted in returns and payments posting incorrectly, and taxpayers and the Department having to amend or manually adjust returns and payments.
The redesigned system will have separate returns for each of the gross receipts and compensating tax programs, as well as separate returns for wage and non-wage withholding. The department also plans to update its Taxpayer Access Point (TAP) e-filing portal for a more intuitive, user-friendly interface.
TRD Cabinet Secretary Stephanie Schardin Clarke said in a press release, “We understand that change is hard and that some taxpayers will be skeptical. Despite its shortcomings, users have become accustomed to the Combined Reporting System and know what to expect. There will be a learning curve.”
Webinars will be scheduled by the department for anyone interested in the project, and training will be offered in a variety of formats once the redesign is complete.
Find more information on the TRD website.