Tax Preparer Permits & Licenses in Albuquerque, NM

Requires filing Articles of Organization. Annual report required separately (see below).

All LLCs must file regardless of business type.

Required if using trade name/DBA. Renews every 5 years ($12).

All businesses providing services (including tax prep) must register for GRT. Tax preparers charge for services subject to GRT.

Issued automatically with GRT registration; used for all state tax filings.

Mandatory for tax preparers who file 10 or more returns electronically. Requires IRS e-file Application (Form 8453-EO), fingerprinting, and adherence to IRS e-file rules. This is specific to tax preparation businesses.

All paid tax preparers, including owners of the LLC, must have a valid PTIN. This is a federal requirement specific to tax preparers. Does not apply to volunteers or incidental preparers.

Applies only if the LLC has employees. Tax preparers must provide a safe workplace, display OSHA poster (available at no cost), and report work-related fatalities or hospitalizations. Most requirements are general, not industry-specific.

If clients visit a physical location, the office must be accessible to individuals with disabilities. Includes parking, entrances, restrooms, and service counters. Also applies to digital accessibility of public-facing websites under evolving interpretation.

Not applicable to typical tax preparer businesses, which do not generate hazardous waste or use regulated substances. EPA requirements do not generally apply to office-based service providers like tax preparers.

Tax preparers must avoid deceptive advertising (e.g., guaranteeing refunds, misrepresenting credentials). Applies to websites, social media, and printed materials. Specific FTC rules include Truth in Advertising and prohibitions on false endorsements.

Requires payment of federal minimum wage, overtime pay (1.5x regular rate for hours over 40/week), and proper recordkeeping. Applies to tax preparer businesses that hire staff.

All employers, including LLCs, must complete Form I-9 to verify identity and work authorization. Applies to U.S. citizens and non-citizens. Must retain for 3 years after hire or 1 year after employment ends.

Requires eligible employees to be granted up to 12 weeks of unpaid, job-protected leave for qualifying family or medical reasons. Not applicable to small tax preparer firms unless they meet the employee threshold.

Tax preparers are considered "financial institutions" under the Bank Secrecy Act (BSA) if they cash checks or accept cash payments over $10,000. Must file Form 8300 for cash payments over $10,000 and may be required to file Suspicious Activity Reports (SARs). Applies only if handling large cash transactions.

All LLCs conducting business in New Mexico must register for GRT, regardless of revenue. Filing is typically quarterly or annually based on estimated tax.

Required of all NM LLCs, even if inactive or no income was earned. Filed online via SOSDirect.

NM law (16-17-1 NMSA 1978) requires ALL tax preparers to register annually with AG office, regardless of credentials (CPA, EA, attorney exempt from some requirements but must still register). LLC itself does not register; individual preparers do.

Required if LLC has NM employees.

All businesses providing services or selling goods in New Mexico must register for a Combined Reporting System (CRS) ID, which includes Gross Receipts Tax (GRT). Tax preparer services are subject to GRT at the state rate (currently 5.125%) plus any local rates depending on location. Filing frequency depends on expected tax liability: monthly, quarterly, or annually.

Required for businesses that pay wages to employees. Employers must withhold state income tax from employee wages and remit it to the state. Filing frequency (monthly or quarterly) is assigned by the state based on payroll volume.

All employers in New Mexico must register with the Department of Workforce Solutions and pay unemployment insurance taxes (UI). New employers typically pay a standard contribution rate for the first few years. Employers receive an Employer Account Number after registration.

LLCs are pass-through entities; income flows to owners who report it on personal returns. However, the business must ensure owners comply with New Mexico personal income tax on income earned in-state. No separate state corporate income tax for LLCs. Non-resident owners may have withholding obligations.

Some municipalities (e.g., Albuquerque, Santa Fe) require a local business license or occupational privilege tax. For example, Albuquerque imposes an Annual Business Tax based on gross receipts. Contact local tax office for specific requirements. Not all jurisdictions impose this tax.

Required for federal tax reporting. Even single-member LLCs may need an EIN if they have employees or elect corporate taxation. Applied for online via IRS Form SS-4.

Voluntary program for non-credentialed tax preparers. Completing the program grants a Record of Completion and allows representation of clients for tax matters. Not a license, but improves compliance and credibility.

Required to participate in IRS e-file program. Includes a suitability check and Form 8655 (IRS E-File Application). Must renew PTIN annually if preparing returns for others.

All paid tax preparers must have a valid PTIN. Required even if the preparer is part of an LLC. Renewal includes ethics education for those in AFSP.

Required for all businesses operating within Albuquerque city limits. Tax preparers fall under professional services.

Applies to businesses outside city limits in Bernalillo County. Fees scale with gross receipts: $50 (<$100k), up to $500 (>$1M).

Tax preparer qualifies as home occupation if <25% of floor area used, no customer traffic >1/day average, no external signage.

Professional offices (including tax prep) allowed in C-1/C-2 zones; verify via zoning map at https://www.cabq.gov/planning/maps

Wall signs limited to 20% of facade; total signage area capped by zone (e.g., 100 sq ft in C-2).

All LLCs formed or registered in New Mexico must file an Annual Report each year. For example, if the LLC was formed in March 2023, the report is due by March 31 annually. This is a requirement for all LLCs, regardless of business type.

While not mandatory, this program allows non-credentialed preparers to obtain a Record of Completion and be listed in the IRS directory. It requires 18 hours of IRS-approved continuing education annually, including 3 hours of federal tax law updates and 3 hours of ethics.

All businesses collecting or liable for state taxes (e.g., withholding, gross receipts) must remain registered with TRD. While there is no annual renewal, the business must update its information within 20 days of any change (e.g., address, ownership, tax types).

An EIN is a one-time requirement. Once issued, it does not expire. However, a new EIN may be needed if the business structure changes (e.g., from sole proprietorship to LLC).

Employers must withhold New Mexico income tax from employee wages. Filing frequency (monthly or quarterly) is determined by TRD based on the amount withheld. Annual reconciliation (Form WHT-1) is due by January 31.

Most tax preparers are subject to GRT on their service fees. The filing frequency is assigned by TRD. Annual reconciliation may be required. Note: GRT is not a sales tax but a tax on business income.

LLC owners must make estimated tax payments on their share of business income unless sufficient tax is withheld via other employment. Use Form 1040-ES.

Owners of the LLC must make estimated state tax payments if they expect to owe $500 or more. Use Form H-ET.

Tax preparers who e-file returns must maintain an active e-Services account and renew their e-file application every 3 years. Account information must be kept current to avoid suspension.

While New Mexico does not require a general business license, tax registrants must display their TRD registration certificate upon request. Local jurisdictions may have additional posting rules.

Employers in New Mexico must display current labor law posters, including Minimum Wage, Workers’ Compensation, and Equal Employment Opportunity. Available for free download from DWS website.

Federal law requires tax preparers and businesses to keep records for at least 3 years. However, IRS recommends 7 years for claims involving worthless securities or bad debt. Client records should be retained for at least 3 years after filing.

New Mexico requires businesses to retain books, records, and tax returns for at least 4 years from the due date of the return or date filed, whichever is later. This applies to GRT, withholding, and other state tax records.

Enrolled Agents must complete 72 hours of continuing education every 3 years (24 hours per year minimum, including 2 hours of ethics annually). This is a federal requirement administered by the IRS Office of Professional Responsibility.

CPAs must renew their license every two years, complete 80 hours of continuing professional education (CPE) per cycle (including 4 hours of ethics), and pay the renewal fee. CPE must be completed prior to renewal.

While not required by state law for tax preparers without employees, many professionals carry errors and omissions (E&O) or general liability insurance. Workers’ compensation is required if the business has employees.

All employers in New Mexico with one or more employees must carry workers’ compensation insurance. This includes part-time and seasonal workers. Sole proprietors and partners are exempt unless they elect coverage.

Most cities in New Mexico require a local business license. Fees and rules vary by jurisdiction. Check with your local government.

Office occupancy <49 occupants typically requires basic life safety inspection (exits, extinguishers).

Registration required to avoid excessive false alarm fines.

All businesses must register; tax preparers classified as "professional services.

Limited to 25% home use; no client visits without special approval.

Basic registration; no zoning approval needed for home offices in AG/RR zones.

Tax preparers pay minimum $50; scales with seasonal receipts.

Gross receipts tax license required for all businesses.

Mandatory for all businesses; replaces county-level "gross receipts tax." Verify via [NMRD OTL Portal](https://www.tax.nm.gov/taxes/occupational_tax/).

Required for all employers with one or more employees in New Mexico, including part-time and seasonal workers. Sole proprietors without employees are exempt but may elect coverage. Enforced under NMSA 1978, Chapter 52, Article 1.

Not legally mandated by New Mexico or IRS for tax preparers, but strongly recommended due to risk of errors and omissions. Enrolled agents are not required to carry E&O insurance by IRS, but many third-party e-file providers or financial institutions may require it as a condition of partnership.

Required for all LLCs regardless of number of members. Even single-member LLCs should obtain an EIN for tax administration. Apply online at IRS.gov.

A single-member LLC is disregarded for federal tax purposes and reports income on Schedule C of Form 1040. Multi-member LLCs are treated as partnerships and must file Form 1065. All tax preparer businesses must file annually.