Instructions for IRS Form Ct-1 X - Adjusted Employer's Annual Railroad Retirement Tax Return or Claim for Refund

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Instructions for Form CT-1 X
Department of the Treasury
Internal Revenue Service
(Rev. February 2018)
Adjusted Employer's Annual Railroad Retirement Tax Return or Claim for Refund
Section references are to the Internal Revenue Code
December 31, 2014. Employers were provided
unless otherwise noted.
instructions on how to correct the social security and
Medicare taxes on the excess transit benefits in Notice
Future Developments
2015-2, 2015-4 I.R.B. 334, available at
IRS.gov/irb/
2015-4_IRB/06.html.
For the latest information about developments related to
Form CT-1 X and its instructions, such as legislation
Retroactive increase in excludable transit benefits
enacted after they were published, go to IRS.gov/CT1X.
for 2015. The Consolidated Appropriations Act, 2016,
What's New
increased the monthly transit benefit exclusion from $130
per participating employee to $250 per participating
Employee consents to support a claim for refund.
employee for the period of January 1, 2015, through
Rev. Proc. 2017-28, 2017-14 I.R.B. 1061, available at
December 31, 2015. Employers were provided
IRS.gov/irb/2017-14_IRB/ar09.html, provides guidance to
instructions on how to correct the social security and
employers on the requirements for employee consents
Medicare taxes on the excess transit benefits in Notice
used by an employer to support a claim for refund of
2016-06, 2016-4 I.R.B. 287, available at
IRS.gov/irb/
overcollected Railroad Retirement Tax Act (RRTA) taxes.
2016-4_IRB/ar07.html.
The revenue procedure clarifies the basic requirements
Correcting Tier 1 Employee Additional Medicare Tax
for both a request for employee consent and for the
withholding and compensation subject to Tier 1 Em-
employee consent, and permits a consent to be
ployee Additional Medicare Tax withholding.
requested, furnished, and retained in an electronic format
Compensation (including tips) and sick pay subject to Tier
as an alternative to paper format. The revenue procedure
1 Employee Additional Medicare Tax withholding are
also contains guidance concerning when an employer
reported on Form CT-1, lines 6 and 12. Certain errors
may claim a refund of only the employer share of
discovered on a previously filed Form CT-1 are corrected
overcollected RRTA taxes. The revenue procedure
on Form CT-1 X, lines 11 and 17. However, you can’t file
requires that any request for consent include an Additional
Form CT-1 X to correct Tier 1 Employee Additional
Medicare Tax notice indicating that any claim on the
Medicare Tax actually withheld from an employee in a
employee’s behalf won’t include a claim for overpaid Tier
prior year. See the instructions for lines
11
and 17, later,
1 Employee Additional Medicare Tax.
for more information on the types of errors that can be
Period of limitations to make certain corrections ex-
corrected and how the correction is reported on Form
pired. Generally, you may correct overreported taxes on
CT-1 X. For more information about Tier 1 Employee
a previously filed Form CT-1 if you file Form CT-1 X within
Additional Medicare Tax withholding, see the Instructions
3 years of the date Form CT-1 was filed or 2 years from
for Form CT-1 or go to IRS.gov/ADMT.
the date you paid the tax reported on Form CT-1,
General Instructions:
whichever is later (but, if any due date falls on a Saturday,
Sunday, or legal holiday, you may file Form CT-1 X on the
Understanding Form CT-1 X
next business day). For purposes of the period of
limitations, Form CT-1 is considered filed on the last day
What Is the Purpose of Form CT-1 X?
in February of the succeeding year if filed before that date.
The period of limitations to correct the Tier 1 Employee
Use Form CT-1 X to correct errors on a previously filed
Tax for 2011 and 2012 expired on March 2, 2015, and
Form CT-1. Use Form CT-1 X to correct:
February 29, 2016, respectively, for most employers.
Tier 1 Employee tax, Tier 1 Employee Medicare tax,
These instructions no longer discuss the reduced rate of
Tier 1 Employee Additional Medicare Tax, and Tier 2
Tier 1 Employee Tax that applied in 2011 and 2012. The
Employee tax; and
2011 and 2012 Tier 1 Employee Tax rate was 4.2% and
Tier 1 Employer tax, Tier 1 Employer Medicare tax, and
the Tier 1 Employer Tax rate was 6.2% (10.4% total). If
Tier 2 Employer tax.
the period of limitations for 2011 and 2012 is still open,
you can file the February 2018 revision of Form CT-1 X
Use Form 843, Claim for Refund and Request for
but make sure you use the correct rate when reporting
Abatement, to request a refund or abatement of assessed
corrections of lines 9 and 15.
interest or penalties. Don’t request a refund or abatement
of assessed interest or penalties on Form CT-1 or Form
Reminders
CT-1 X.
Retroactive increase in excludable transit benefits
We use the terms “correct” and “corrections” on
for 2014. The Tax Increase Prevention Act of 2014
Form CT-1 X and in these instructions to include
TIP
increased the monthly transit benefit exclusion from $130
interest-free adjustments under sections 6205 and
per participating employee to $250 per participating
6413 and claims for refund and abatement under sections
employee for the period of January 1, 2014, through
6402, 6414, and 6404. See Rev. Rul. 2009-39 for
Mar 14, 2018
Cat. No. 20339E
Instructions for Form CT-1 X
Department of the Treasury
Internal Revenue Service
(Rev. February 2018)
Adjusted Employer's Annual Railroad Retirement Tax Return or Claim for Refund
Section references are to the Internal Revenue Code
December 31, 2014. Employers were provided
unless otherwise noted.
instructions on how to correct the social security and
Medicare taxes on the excess transit benefits in Notice
Future Developments
2015-2, 2015-4 I.R.B. 334, available at
IRS.gov/irb/
2015-4_IRB/06.html.
For the latest information about developments related to
Form CT-1 X and its instructions, such as legislation
Retroactive increase in excludable transit benefits
enacted after they were published, go to IRS.gov/CT1X.
for 2015. The Consolidated Appropriations Act, 2016,
What's New
increased the monthly transit benefit exclusion from $130
per participating employee to $250 per participating
Employee consents to support a claim for refund.
employee for the period of January 1, 2015, through
Rev. Proc. 2017-28, 2017-14 I.R.B. 1061, available at
December 31, 2015. Employers were provided
IRS.gov/irb/2017-14_IRB/ar09.html, provides guidance to
instructions on how to correct the social security and
employers on the requirements for employee consents
Medicare taxes on the excess transit benefits in Notice
used by an employer to support a claim for refund of
2016-06, 2016-4 I.R.B. 287, available at
IRS.gov/irb/
overcollected Railroad Retirement Tax Act (RRTA) taxes.
2016-4_IRB/ar07.html.
The revenue procedure clarifies the basic requirements
Correcting Tier 1 Employee Additional Medicare Tax
for both a request for employee consent and for the
withholding and compensation subject to Tier 1 Em-
employee consent, and permits a consent to be
ployee Additional Medicare Tax withholding.
requested, furnished, and retained in an electronic format
Compensation (including tips) and sick pay subject to Tier
as an alternative to paper format. The revenue procedure
1 Employee Additional Medicare Tax withholding are
also contains guidance concerning when an employer
reported on Form CT-1, lines 6 and 12. Certain errors
may claim a refund of only the employer share of
discovered on a previously filed Form CT-1 are corrected
overcollected RRTA taxes. The revenue procedure
on Form CT-1 X, lines 11 and 17. However, you can’t file
requires that any request for consent include an Additional
Form CT-1 X to correct Tier 1 Employee Additional
Medicare Tax notice indicating that any claim on the
Medicare Tax actually withheld from an employee in a
employee’s behalf won’t include a claim for overpaid Tier
prior year. See the instructions for lines
11
and 17, later,
1 Employee Additional Medicare Tax.
for more information on the types of errors that can be
Period of limitations to make certain corrections ex-
corrected and how the correction is reported on Form
pired. Generally, you may correct overreported taxes on
CT-1 X. For more information about Tier 1 Employee
a previously filed Form CT-1 if you file Form CT-1 X within
Additional Medicare Tax withholding, see the Instructions
3 years of the date Form CT-1 was filed or 2 years from
for Form CT-1 or go to IRS.gov/ADMT.
the date you paid the tax reported on Form CT-1,
General Instructions:
whichever is later (but, if any due date falls on a Saturday,
Sunday, or legal holiday, you may file Form CT-1 X on the
Understanding Form CT-1 X
next business day). For purposes of the period of
limitations, Form CT-1 is considered filed on the last day
What Is the Purpose of Form CT-1 X?
in February of the succeeding year if filed before that date.
The period of limitations to correct the Tier 1 Employee
Use Form CT-1 X to correct errors on a previously filed
Tax for 2011 and 2012 expired on March 2, 2015, and
Form CT-1. Use Form CT-1 X to correct:
February 29, 2016, respectively, for most employers.
Tier 1 Employee tax, Tier 1 Employee Medicare tax,
These instructions no longer discuss the reduced rate of
Tier 1 Employee Additional Medicare Tax, and Tier 2
Tier 1 Employee Tax that applied in 2011 and 2012. The
Employee tax; and
2011 and 2012 Tier 1 Employee Tax rate was 4.2% and
Tier 1 Employer tax, Tier 1 Employer Medicare tax, and
the Tier 1 Employer Tax rate was 6.2% (10.4% total). If
Tier 2 Employer tax.
the period of limitations for 2011 and 2012 is still open,
you can file the February 2018 revision of Form CT-1 X
Use Form 843, Claim for Refund and Request for
but make sure you use the correct rate when reporting
Abatement, to request a refund or abatement of assessed
corrections of lines 9 and 15.
interest or penalties. Don’t request a refund or abatement
of assessed interest or penalties on Form CT-1 or Form
Reminders
CT-1 X.
Retroactive increase in excludable transit benefits
We use the terms “correct” and “corrections” on
for 2014. The Tax Increase Prevention Act of 2014
Form CT-1 X and in these instructions to include
TIP
increased the monthly transit benefit exclusion from $130
interest-free adjustments under sections 6205 and
per participating employee to $250 per participating
6413 and claims for refund and abatement under sections
employee for the period of January 1, 2014, through
6402, 6414, and 6404. See Rev. Rul. 2009-39 for
Mar 14, 2018
Cat. No. 20339E
Where Can You Get Help?
examples of how the interest-free adjustment and claim
for refund rules apply in 10 different situations. You can
find Rev. Rul. 2009-39, 2009-52 I.R.B. 951 at
IRS.gov/irb/
For help filing Form CT-1 X or for questions about RRTA
2009-52_IRB/ar14.html.
taxes and tax corrections, you can:
Go to IRS.gov/EmploymentTaxes;
See Pub. 15, Employer's Tax Guide; or
When you discover an error on a previously filed Form
Call the IRS Business and Specialty Tax Line toll free at
CT-1, you must:
1-800-829-4933 or 1-800-829-4059 (TDD/TTY for
Correct that error using Form CT-1 X;
persons who are deaf, hard of hearing, or have a speech
File a separate Form CT-1 X for each Form CT-1 that
disability) Monday–Friday from 7:00 a.m. to 7:00 p.m.
you’re correcting; and
local time (Alaska and Hawaii follow Pacific time).
Generally, file Form CT-1 X separately. Don’t file Form
CT-1 X with Form CT-1. However, see the instructions for
See also
How Can You Get Forms, Instructions, and
line
22, later, for an exception.
Publications From the
IRS, later.
When Should You File Form CT-1 X?
If you didn’t file a Form CT-1 for 1 or more years, don’t
use Form CT-1 X. Instead, file Form CT-1 for each of
File Form CT-1 X when you discover an error on a
those years. See also
When Should You File Form CT-1
previously filed Form CT-1.
X, later. However, if you didn’t file Forms CT-1 because
you improperly treated workers as independent
However, if your only errors on Form CT-1 relate to
contractors or nonemployees and are now reclassifying
RRTA tax liabilities reported in Part II of Form CT-1 or on
them as employees, see the instructions for
line
22, later.
Form 945-A, Annual Record of Federal Tax Liability, don’t
file Form CT-1 X. To correct federal tax liabilities reported
Report the correction of underreported and
in Part II of Form CT-1, file Form 945-A, but only enter the
overreported amounts for the same tax period on a single
monthly totals. The daily entries aren’t required. For more
Form CT-1 X, unless you’re requesting a refund or
information about correcting RRTA tax liabilities reported
abatement. If you’re requesting a refund or abatement and
on Form 945-A, see the Form 945-A instructions.
are correcting both underreported and overreported
Due dates. The due date for filing Form CT-1 X depends
amounts, file one Form CT-1 X correcting the
on when you discover an error and if you underreported or
underreported amounts only and a second Form CT-1 X
overreported tax. If you underreported tax, see
correcting the overreported amounts.
Underreported
tax, later. For overreported amounts, you
may choose to either make an interest-free adjustment or
You’ll use the adjustment process if you underreported
file a claim for refund or abatement. If you’re correcting
RRTA taxes and are making a payment, or if you
overreported amounts, see
Overreported tax—adjustment
overreported RRTA taxes and will be applying the credit
process
or
Overreported tax—claim
process, later.
to Form CT-1 for the period during which you file Form
CT-1 X. However, see the Caution under
Is There a
If any due date falls on a Saturday, Sunday, or legal
Deadline for Filing Form CT-1
X, later, if you’re correcting
holiday, you may file Form CT-1 X on the next business
overreported amounts during the last 90 days of a period
day. The term “legal holiday” means any legal holiday in
of limitations. You’ll use the claim process if you
the District of Columbia. See Pub. 15 for the list of legal
overreported RRTA taxes and are requesting a refund or
holidays. If we receive Form CT-1 X after the due date, we
abatement of the overreported amount. Follow the chart
will treat Form CT-1 X as filed on time if the envelope
on the back of Form CT-1 X for help in choosing whether
containing Form CT-1 X is properly addressed, contains
to use the adjustment process or the claim process. Be
sufficient postage, and is postmarked by the U.S. Postal
sure to provide a detailed explanation on line 23 for each
Service on or before the due date, or sent by an
correction that you show on Form CT-1 X.
IRS-designated private delivery service (PDS) on or
before the due date. If you don’t follow these guidelines,
Continue to report current year adjustments on Form
we will consider Form CT-1 X filed when it is actually
CT-1, line 14.
received. Go to
IRS.gov/PDS
for the current list of PDSs.
For the IRS mailing address to use if you’re using a PDS,
You have additional requirements to complete when
go to IRS.gov/PDSstreetAddresses.
filing Form CT-1 X, such as certifying that you filed (or will
file) all applicable Forms W-2, Wage and Tax Statements,
Underreported tax. If you’re correcting underreported
and Forms W-2c, Corrected Wage and Tax Statements,
tax, you must file Form CT-1 X by the due date of the
with the Social Security Administration (SSA). For
return for the return period in which you discovered the
corrections of overreported Tier 1 and Tier 2 taxes, you
error and pay the amount you owe by the time you file.
must make any certifications that apply to your situation.
Filing and paying on time generally will ensure that your
correction is interest free and not subject to failure-to-pay
Be sure to give us a detailed explanation on line 23 for
(FTP) or failure-to-deposit (FTD) penalties. See
What
each correction you show on Form CT-1 X.
About Penalties and
Interest, later. For details on how to
make a payment, see the instructions for
lines
19–20,
Don’t use Form CT-1 X to correct Form 941,
later.
941-SS, 943, 944, or 945. Instead, use the "X"
!
form that corresponds to those forms (Form
If Form CT-1 X is filed late (after the due date of the
CAUTION
941-X, 943-X, 944-X, or 945-X).
return for the return period in which you discovered the
error), you must attach an amended Form 945-A to Form
-2-
Instructions for Form CT-1 X (Rev. 2-2018)
CT-1 X. Otherwise, the IRS may assess an “averaged”
years of the date the Form CT-1 was filed. We call each of
FTD penalty. The total tax reported on Form 945-A, line
these time frames a “period of limitations.” For purposes
M, must match the corrected total tax (Form CT-1, line 15,
of the period of limitations, Form CT-1 is considered filed
combined with any correction reported on Form CT-1 X,
on the last day in February of the succeeding year if filed
line 20) for the year, less any previous abatements and
before that date.
interest-free tax assessments.
Example. You filed your 2017 Form CT-1 on January
Example—You owe tax. On March 9, 2018, you
29, 2018, and payments were timely made. The IRS treats
discovered that you underreported $1,000 of RRTA
the return as if it were filed on February 28, 2018. On
compensation on your 2017 Form CT-1. File Form CT-1 X
January 11, 2021, you discover that you overreported
and pay the amount you owe by February 28, 2019,
RRTA compensation on that form by $10,000. To correct
because you discovered the error in 2018, and February
the error, you must file Form CT-1 X by March 1, 2021,
28, 2019, is the due date for that year. If you file Form
which is the end of the period of limitations, and use the
CT-1 X before February 28, 2019, pay the amount you
claim process.
owe by the time you file.
If you file Form CT-1 X to correct overreported
Form CT-1 X can’t be used to correct
amounts in the last 90 days of a period of
!
underreported amounts of Tier 1 Employee
limitations, you must use the claim process. You
!
CAUTION
Additional Medicare Tax unless the amounts were
can’t use the adjustment process. If you also are
CAUTION
withheld from employee compensation.
correcting underreported amounts, you must file another
Form CT-1 X to correct the underreported amounts using
Overreported tax—adjustment process. If you
the adjustment process and pay any tax due.
overreported tax and choose to apply the credit to Form
Where Should You File Form CT-1 X?
CT-1, file an adjusted return on Form CT-1 X as soon as
possible after you discover the error but more than 90
days before the period of limitations on the credit or refund
Send your completed Form CT-1 X to:
for Form CT-1 expires. See
Is There a Deadline for Filing
Department of the Treasury
Form CT-1
X, later.
Internal Revenue Service Center
Form CT-1 X can’t be used to correct
Cincinnati, OH 45999-0007
overreported amounts of Tier 1 Employee
!
Additional Medicare Tax unless the amounts
For the IRS mailing address to use if you’re using a PDS,
CAUTION
weren’t withheld from employee compensation.
go to IRS.gov/PDSstreetAddresses.
How Should You Complete Form CT-1
Example—You want your credit applied to Form
CT-1. You filed your 2017 Form CT-1 on February 23,
X?
2018, and payments were timely made. On May 4, 2018,
you discover that you overreported tax on your 2017 Form
Use a Separate Form CT-1 X for Each Year
CT-1. You file Form CT-1 X on June 1, 2018. The IRS
You’re Correcting
treats your credit as a tax deposit made on January 1,
2018. When you file your 2018 Form CT-1, include the
Use a separate Form CT-1 X for each Form CT-1 that
amount from Form CT-1 X, line 20, on the “Total railroad
you’re correcting. For example, if you found errors on your
retirement tax deposits” line of your 2018 Form CT-1.
Forms CT-1 for 2016 and 2017, file one Form CT-1 X to
correct the 2016 Form CT-1. File a second Form CT-1 X
Overreported tax—claim process. If you overreported
to correct the 2017 Form CT-1.
tax on Form CT-1, you may choose to file a claim for
refund or abatement on Form CT-1 X any time before the
Employer identification number (EIN), RRB
period of limitations on credit or refund expires on Form
Number, Name, and Address
CT-1. If you also need to correct any underreported
amounts, you must file another Form CT-1 X reporting
Enter your EIN, RRB number, name, and address in the
only corrections to the underreported amounts. See
Is
spaces provided. Also enter your name and EIN on the
There a Deadline for Filing Form CT-1
X, later.
top of pages 2 and 3. Be sure to write your name, EIN,
“Form CT-1 X,” and the calendar year you’re correcting on
You may not file a refund claim to correct Tier 1
the top of any attachments. If your address has changed
Employee Additional Medicare Tax actually
!
since you filed your Form CT-1, enter the corrected
withheld from employees.
information and the IRS will update your address of
CAUTION
record.
Is There a Deadline for Filing Form
CT-1 X?
Return You’re Correcting
Enter the calendar year of the Form CT-1 you’re
Generally, you may correct overreported taxes on a
correcting at the top of page 1. Enter the calendar year on
previously filed Form CT-1 if you file Form CT-1 X within 3
pages 2 and 3 and on any attachments. Be sure to write
years of the date Form CT-1 was filed or 2 years from the
your name, EIN, “Form CT-1 X,” and the calendar year
date you paid the tax reported on Form CT-1, whichever is
you’re correcting on the top of any attachments.
later. You may correct underreported taxes on a
previously filed Form CT-1 if you file Form CT-1 X within 3
-3-
Instructions for Form CT-1 X (Rev. 2-2018)
Enter the Date You Discovered Errors
If you receive a notice about a penalty after you file this
return, reply to the notice with an explanation and we will
You must enter the date you discovered errors. You
determine if you meet reasonable-cause criteria. Don’t
discover an error when you have enough information to be
attach an explanation when you file your return.
able to correct it. If you’re reporting several errors that you
Overview of the Process
discovered at different times, enter the earliest date you
discovered an error here. Report any subsequent dates
and related errors on line 23.
To correct a previously file Form CT-1, use Form CT-1 X
to file either an adjusted railroad retirement tax return or a
Must You Make an Entry on Each Line?
claim for refund or abatement. The adjustment process
You must provide all of the information requested at the
and the claim process are outlined below.
top of page 1 of Form CT-1 X. You must check one box
If you underreported the tax. If you underreported
(but not both) in Part 1. In Part 2, you must check the box
the tax on a previously filed Form CT-1, check the box on
on line 3 and any applicable boxes on lines 4 and 5. In
line 1 and pay any additional amount you owe by the
Part 3, if any line doesn’t apply, leave it blank. Complete
time you file Form CT-1 X. For details on how to make a
Parts 4 and 5 as instructed.
payment, see the instructions for
lines
19–20, later.
Example—You underreported RRTA taxes. On
How Should You Report Negative Amounts?
June 23, 2017, you discovered an error that results in
Form CT-1 X uses negative numbers to show reductions
additional tax on your 2016 Form CT-1. File Form CT-1 X
in tax (credits) and positive numbers to show additional
by February 28, 2018, and pay the amount you owe by the
tax (amounts you owe).
time you file. See
When Should You File Form CT-1
X,
earlier. Don’t attach Form CT-1 X to your 2017 Form
When reporting a negative amount in columns 3 and 4,
CT-1.
use a minus sign instead of parentheses. For example,
If you overreported the tax. If you overreported the
enter “-10.59” instead of “(10.59).” However, if you’re
tax on a previously filed Form CT-1, choose one of the
completing the return on your computer and your software
following options.
only allows you to use parentheses to report negative
Use the adjustment process. Check the box on line 1 to
amounts, you may use them.
apply any credit (negative amount) from line 20 to Form
How Should You Make Entries on Form CT-1 X?
CT-1 for the year during which you file Form CT-1 X.
Use the claim process. Check the box on line 2 to file a
You can help the IRS process Form CT-1 X timely and
claim on Form CT-1 X requesting a refund or abatement
accurately if you follow these guidelines.
of the amount shown on line 20.
Type or print your entries.
Use Courier font (if possible) for all typed or
To ensure that the IRS has enough time to
computer-generated entries.
process a credit for an overreporting
TIP
Omit dollar signs. You may use commas and decimal
adjustment in the year during which you file Form
points, if desired. Enter dollar amounts to the left of any
CT-1 X, you’re encouraged to file Form CT-1 X correcting
preprinted decimal point and cents to the right of it.
the overreported amount in the first 11 months of a year.
Always show an amount for cents, even if it is zero.
For example, if you discover an overreported amount in
Don’t round entries to whole dollars.
December, you may want to file Form CT-1 X in the first
Complete all three pages and sign Form CT-1 X on
11 months of the next year. However, there must be 90
page 3.
days remaining on the period of limitations when you file
Staple multiple sheets in the upper-left corner.
Form CT-1 X. See the Caution under
Is There a Deadline
for Filing Form CT-1 X
, earlier. This should ensure that
What About Penalties and Interest?
the IRS will have enough time to process the Form CT-1 X
Generally, your correction of an underreported amount
so that the credit will be posted before you file Form CT-1,
won’t be subject to an FTP penalty, FTD penalty, or
thus avoiding an erroneous balance due notice from the
interest if you:
IRS. See the example next.
File on time (by the due date of the year in which you
discover the error),
Example—You want your overreported tax applied
Pay the amount shown on line 20 by the time you file
as a credit on Form CT-1. On December 18, 2018, you
Form CT-1 X,
discover you overreported your tax on your 2017 Form
Enter the date you discovered the error, and
CT-1 and want to choose the adjustment process. To
Explain in detail the grounds and facts relied on to
allow the IRS enough time to process the credit, you file
support the correction.
Form CT-1 X on March 8, 2019, and take the credit on
your 2019 Form CT-1.
No correction will be eligible for interest-free treatment
if any of the following apply.
Specific Instructions
The underreported amounts relate to an issue that was
raised in an examination of a prior period.
Part 1: Select ONLY One Process
You knowingly underreported your employment tax
liability.
Because Form CT-1 X may be used to file either an
You received a notice and demand for payment.
adjusted railroad retirement tax return or a claim for refund
You received a notice of determination under section
7436.
-4-
Instructions for Form CT-1 X (Rev. 2-2018)
or abatement, you must check one box on either line 1 or
Unless the IRS corrects Form CT-1 X during
line 2. Don’t check both boxes.
processing or you owe other taxes, penalties, or interest,
the IRS will refund the amount shown on line 20, plus any
1. Adjusted Railroad Retirement Tax Return
interest that applies.
Check the box on line 1 if you’re correcting underreported
You may not file a refund claim to correct Tier 1
amounts or overreported amounts and you would like to
Employee Additional Medicare Tax actually
!
use the adjustment process to correct the errors.
withheld from employees.
CAUTION
If you’re correcting both underreported amounts and
Part 2: Complete the Certifications
overreported amounts on this form, you must check this
box. If you check this box, any negative amount shown on
You must complete all certifications that apply by
line 20 will be applied as a credit (tax deposit) to your
checking the appropriate boxes. If all of your corrections
Form CT-1 for the year in which you’re filing this form. See
relate to underreported amounts, complete line 3 only;
Example—You want your overreported tax applied as a
skip lines 4 and 5 and go to Part 3.
credit on Form
CT-1, earlier.
If your corrections relate to overreported amounts, you
Form CT-1 X can’t be used to correct
have a duty to ensure that your employees' rights to
overreported amounts of Tier 1 Employee
!
recover overpaid Employee RRTA taxes that you withheld
Additional Medicare Tax unless the amounts
are protected. The certifications on lines 4 and 5 address
CAUTION
weren’t withheld from employee compensation.
the requirement to:
If you owe tax. Pay the amount shown on line 20 by the
Repay or reimburse your employees for the
time you file Form CT-1 X. Generally, you won’t be
overcollection of Employee RRTA taxes, or
charged interest if you file on time, pay on time, enter the
Obtain consents from your employees to file a claim on
date you discovered the error, and explain the correction
their behalf. See Rev. Proc. 2017-28 for guidance on the
on line 23.
requirements for both a request for employee consent and
for the employee consent.
If you have a credit. You overreported RRTA taxes (you
For purposes of these certifications, Employee RRTA
have a negative amount on line 20) and want the IRS to
taxes consist of Tier 1 Employee tax, Tier 1 Employee
apply the credit to Form CT-1 for the period during which
Medicare tax, and Tier 2 Employee tax. Employer RRTA
you filed Form CT-1 X. The IRS will apply your credit on
taxes consist of Tier 1 Employer tax, Tier 1 Employer
the first day of the Form CT-1 year during which you filed
Medicare tax, and Tier 2 Employer tax.
Form CT-1 X. However, the credit you show on Form
CT-1 X, line 20, may not be fully available on your Form
3. Filing Forms W-2 or Forms W-2c
CT-1 if the IRS corrects it during processing or you owe
Check the box on line 3 to certify that you filed or will file
other taxes, penalties, or interest. The IRS will notify you if
Forms W-2 or Forms W-2c with the SSA, as required,
your claimed credit changes or if the amount available as
showing your employees' correct wage and tax amounts.
a credit on Form CT-1 was reduced because of unpaid
See the General Instructions for Forms W-2 and W-3 for
taxes, penalties, or interest.
detailed information about filing requirements.
Don’t check the box on line 1 if you’re correcting
You must check the box on line 3 to certify that you filed
overreported amounts and the period of
!
Forms W-2 or Forms W-2c even if your corrections on
limitations on credit or refund for Form CT-1 will
CAUTION
Form CT-1 X don’t change amounts shown on those
expire within 90 days of the date you file Form CT-1 X.
forms. For example, if your only correction to Form CT-1
Instead, check the box on line 2. See
Is There a Deadline
involves misstated tax adjustments (see the instructions
for Filing Form CT-1
X, earlier.
for
line
18, later), check the box on line 3 to certify that you
already filed all required Forms W-2 and W-2c with the
2. Claim
SSA.
Check the box on line 2 to use the claim process if you’re
correcting overreported amounts only and you’re
4. Certifying Overreporting Adjustments
claiming a refund or abatement for the negative amount
If you overreported RRTA tax and/or Tier 1 Employee
(credit) shown on line 20. Don’t check this box if you’re
Additional Medicare Tax and checked the box on line 1,
correcting any underreported amounts on this form.
check the appropriate box on line 4. You may need to
check more than one box. If you obtained written
You must check the box on line 2 if you have a credit
statements from some employees but you couldn’t locate
and the period of limitations on credit or refund for Form
employees or secure the statements of the remaining
CT-1 will expire within 90 days of the date you file Form
employees, check all applicable boxes. Provide a
CT-1 X. See
Is There a Deadline for Filing Form CT-1
X,
summary on line 23 of the amount of the corrections for
earlier.
both the employees who provided written statements and
for those who didn’t.
The IRS usually processes claims shortly after they are
filed. The IRS will notify you if your claim is denied,
accepted as filed, or selected to be examined. See Pub.
556, Examination of Returns, Appeal Rights, and Claims
for Refund, for more information.
-5-
Instructions for Form CT-1 X (Rev. 2-2018)

Download Instructions for IRS Form Ct-1 X - Adjusted Employer's Annual Railroad Retirement Tax Return or Claim for Refund

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