Instructions For Form Ct-1 X - 2010 (Page 4 of 9) in pdf

How Should You Make Entries on Form CT-1 X?

to process the credit, you file Form CT-1 X on February 7,

2011.

You can help the IRS process Form CT-1 X timely and

accurately if you follow these guidelines.

•

Type or print your entries.

•

Specific Instructions

Use Courier font (if possible) for all typed or

computer-generated entries.

•

Omit dollar signs. You may use commas and decimal points,

Part 1: Select ONLY one process.

if desired. Enter dollar amounts to the left of any preprinted

decimal point and cents to the right of it.

•

Because Form CT-1 X may be used to file either an adjusted

Always show an amount for cents. Do not round entries to

railroad retirement tax return or a claim for refund or abatement,

whole dollars.

•

you must check one box on either line 1 or line 2. Do not check

Complete all three pages and sign Form CT-1 X on page 3.

•

both boxes.

Staple multiple sheets in the upper-left corner.

1. Adjusted Railroad Retirement Tax Return

What About Penalties and Interest?

Check the box on line 1 if you are correcting underreported

Generally, your correction of an underreported amount will not

amounts or overreported amounts and you would like to use the

be subject to a failure-to-pay penalty, failure-to-deposit penalty,

adjustment process to correct the errors.

or interest if you:

•

If you are correcting both underreported amounts and

File on time (by the due date of the year in which you

overreported amounts on this form, you must check this box. If

discover the error),

•

you check this box, any negative amount shown on line 17 will

Pay the amount shown on line 17 when you file Form

be applied as a credit (tax deposit) to your Form CT-1 for the

CT-1 X,

•

year in which you are filing this form. See Example — You want

Enter the date you discovered the error, and

•

your overreported tax applied as a credit to Form CT-1 on this

Explain in detail the grounds and facts relied on to support

page.

the correction.

If you owe tax. Pay the amount shown on line 17 when you

No correction will be eligible for interest-free treatment if (a)

file Form CT-1 X. Generally, you will not be charged interest if

the underreported amounts relate to an issue that was raised in

you file on time, pay on time, enter the date you discovered the

an examination of a prior period, (b) you knowingly

error, and explain the correction on line 20.

underreported your employment tax liability, (c) you received a

If you have a credit. You overreported RRTA taxes (you have

notice and demand for payment after assessment, or (d) you

a negative amount on line 17) and want the IRS to apply the

received a Notice of Determination of Worker Classification.

credit to Form CT-1 for the period during which you filed Form

Overview of the Process

CT-1 X. The IRS will apply your credit on the first day of the

Form CT-1 year during which you filed Form CT-1 X. However,

the credit you show on line 17 of Form CT-1 X may not be fully

The process for adjusting Form CT-1 or filing a claim is outlined

available on your Form CT-1 if the IRS corrects it during

below.

processing or you owe other taxes, penalties, or interest. The

If you underreported the tax. If you underreported the tax

IRS will notify you if your claimed credit changes or if the

on a previously filed Form CT-1, check the box on line 1 and

amount available as a credit was reduced because of unpaid

pay any additional amount you owe when you file Form CT-1 X.

taxes, penalties, or interest.

For details on how to make a payment, see the instructions for

Do not check the box on line 1 if you are correcting

line 17 on page 7.

overreported amounts and the period of limitations on

Example — You underreported RRTA taxes. On June 21,

credit or refund for Form CT-1 will expire within 90 days

CAUTION

2011, you discover an error that results in additional tax on your

of the date you file Form CT-1 X. Instead, check the box on line

2009 Form CT-1. File Form CT-1 X by February 29, 2012, and

2. See Is There a Deadline for Filing Form CT-1 X? on page 2.

pay the amount you owe when you file. See When Should You

File Form CT-1 X? beginning on page 1. Do not attach Form

2. Claim

CT-1 X to your 2011 Form CT-1.

Check the box on line 2 to use the claim process if you are

If you overreported the tax. If you overreported the tax on

correcting overreported amounts only and you are claiming a

a previously filed Form CT-1, you may choose to:

refund or abatement for the negative amount (credit) shown on

•

Use the adjustment process. Check the box on line 1 to apply

line 17. Do not check this box if you are correcting ANY

any credit (negative amount) from line 17 to Form CT-1 for the

underreported amounts on this form.

year during which you file Form CT-1 X, or

You must check the box on line 2 if you have a credit and

•

Use the claim process. Check the box on line 2 to file a claim

the period of limitations on credit or refund for Form CT-1 will

on Form CT-1 X requesting a refund or abatement of the

expire within 90 days of the date you file Form CT-1 X. See Is

amount shown on line 17.

There a Deadline for Filing Form CT-1 X? on page 2.

To ensure that the IRS has enough time to process a

The IRS usually processes claims shortly after they are filed.

TIP

credit for an overreporting adjustment in the year

The IRS will notify you if your claim is denied, accepted as filed,

during which you file Form CT-1 X, you are encouraged

or selected to be examined. See Publication 556, Examination

to file Form CT-1 X correcting the overreported amount in the

of Returns, Appeal Rights, and Claims for Refund, for more

first eleven months of a year. For example, if you discover an

information.

overreported amount in December, you may want to file Form

Unless the IRS corrects Form CT-1 X during processing or

CT-1 X in the first eleven months of the next year. (However,

you owe other taxes, penalties, or interest, the IRS will refund

there must be 90 days remaining on the period of limitations

the amount shown on line 17, plus any interest that applies.

when you file Form CT-1 X. See the Caution on page 2.) This

should ensure that the IRS will have enough time to process the

Part 2: Complete the Certifications.

Form CT-1 X so that the credit will be posted before you file

Form CT-1, thus avoiding an erroneous balance due notice

You must complete all certifications that apply by checking the

from the IRS. See the example below.

appropriate boxes. If all of your corrections relate to

Example — You want your overreported tax applied as a

underreported amounts, complete line 3 only; skip lines 4 and 5

credit to Form CT-1. On December 22, 2010, you discover

and go to Part 3. If your corrections relate to overreported

you overreported your tax on your 2009 Form CT-1 and want to

amounts, you have a duty to assure that your employees’ rights

choose the adjustment process. To allow the IRS enough time

to recover overpaid Employee RRTA taxes that you withheld

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Instructions for Form CT-1 X (2010)

Instructions For Form Ct-1 X - 2010 Page 4

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