Independent contractors are businesses

The general rule according to New Mexico and federal tax law is that independent contractors are considered to be in business and they are self employed.

All businesses doing business within the state are required to register with the N.M. Taxation & Revenue Department and report their gross receipts (aka sales) in order to determine the amount of gross receipts tax for which they are liable.

Once the registration process is complete the business will receive their CRS ID number. This number is used to report gross receipts and NM income tax withheld from employees' wages. 

Caution: Your CRS ID number is a separate identification number from your IRS Employer Identification Number (EIN) and the Employer Account Number (EAN) issued by the NM Department of Workforce Solutions for reporting and paying state unemployment tax. Tip: When contacting a tax authority, be sure to use the ID number that particular agency has assigned to your business.

Businesses are also required to file income tax returns to report the share of their profit earned from doing business in New Mexico.