Instructions For Form Ct-1 X - 2010 (Page 8 of 9) in pdf

amount from line 12 of Form CT-1 in column 2. In column 3,

at 1-800-555-4477 toll free, or get Pub. 966, The Secure Way to

enter the difference between columns 1 and 2.

Pay Your Federal Taxes.

•

If you pay by check or money order, make it payable to

line 16 (column 1)

“United States Treasury.” On your check or money order, be

-line 16 (column 2)

sure to write your EIN, “Form CT-1 X,” and the year corrected.

line 16 (column 3)

Do not use a federal tax deposit coupon (Form 8109 or

Form 8109-B) to make a payment with Form CT-1 X.

You may need to report negative numbers in any

TIP

column. Make sure that the difference you enter in

CAUTION

column 3 accurately represents the change to

You do not have to pay if the amount you owe is less than

adjustments originally reported or previously corrected on line

$1.

12 of Form CT-1.

Previously assessed FTD penalty. If line 17 reflects

Copy the amount in column 3 to column 4. Include any

overreported tax and the IRS previously assessed an FTD

minus sign shown in column 3.

penalty, you may be able to reduce the penalty. For more

On line 20, describe what you misreported on Form CT-1.

information, see the instructions for Form 945-A.

Tell us which current year adjustments have changed, that is,

Part 4: Explain Your Corrections for This

fractions of cents; uncollected Tier I Employee tax, Tier I

Employee Medicare tax, or Tier II Employee tax on tips; or

Year.

credits for overpayments of penalty or interest paid on tax for

earlier years.

18. Correction of Both Underreported and

Only use line 16 to correct adjustments for fractions of

Overreported Amounts

cents; uncollected Tier I Employee tax, Tier I Employee

Medicare tax, and Tier II Employee tax on tips; or credits

CAUTION

Check the box on line 18 if any corrections you entered on lines

for overpayments of penalty or interest previously reported. File

6 through 16 in column 3 reflect both underreported and

a separate Form CT-1 X for each year being corrected.

overreported amounts.

17. Total

Example. If you had an increase to Tier I Employer

compensation of $15,000 for employee A and a decrease to

Combine the amounts on lines 6 through 16 of column 4.

Tier I Employer compensation of $5,000 for employee B, you

Example. You entered “-500.00” in column 4 of line 6,

would enter $10,000 on line 6, column 3. That $10,000

“-100.00” in column 4 of line 7, and “1,400.00” in column 4 of

represents the net change from corrections.

line 16. Combine these amounts and enter “800.00” in column 4

On line 20, you must explain the reason for both the $15,000

of line 17.

increase and the $5,000 decrease.

Line 6

-500.00

19. Did You Reclassify Any Workers?

Line 7

-100.00

Check the box on line 19 if you reclassified any workers to be

Line 16

+1,400.00

independent contractors or nonemployees. Also check this box

Line 17

800.00

if the IRS (or you) determined that workers you treated as

Your credit. If the amount entered on line 17 is less than zero,

independent contractors or nonemployees should be classified

for example, “-115.00,” you have a credit because you

as employees. On line 20, give us a detailed reason why any

overreported your RRTA taxes.

worker was reclassified.

•

If you checked the box on line 1, include this amount on

Return not filed because you did not treat any workers as

line 14 (“Total railroad retirement tax deposits”) of Form CT-1

employees. If you did not previously file Form CT-1 because

for the year during which you filed Form CT-1 X. Do not make

you mistakenly treated all workers as independent contractors

any changes to your Record of Railroad Retirement Tax

or as nonemployees, file a Form CT-1 for each delinquent year.

Liability in Part II of Form CT-1 or on Form 945-A, if your Form

Write “Misclassified Employees” in dark, bold letters across

CT-1 or Form 945-A is filed timely. The amounts reported on

the top margin of page 1 of each Form CT-1. Complete Form

the record should reflect your actual tax liability for the period.

•

CT-1 using the Instructions for Form CT-1. Attach a Form

If you checked the box on line 2, you are filing a claim for

CT-1 X to each Form CT-1. Complete the top of Form CT-1 X,

refund or abatement of the amount shown.

including the date you discovered the error, and provide a

If your credit is less than $1, we will send a refund or apply it

detailed explanation on line 20.

only if you ask us in writing to do so.

20. Explain Your Corrections

Amount you owe. You must pay the amount you owe when

you file Form CT-1 X. You may not use any credit that you

Treasury regulations require you to explain in detail the grounds

show on another Form CT-1 X to pay the amount you owe,

and facts relied upon to support each correction. On line 20,

even if you filed for the amount you owe and the credit at the

describe in detail each correction you entered in column 4 on

same time.

lines 6 through 16. If you need more space, attach additional

sheets, but be sure to write your name, EIN, and calendar year

If you owe tax and are filing a timely Form CT-1 X, do not file

on the top of each sheet.

an amended Form 945-A unless you were assessed a

failure-to-deposit (FTD) penalty caused by an incorrect,

You must describe the events that caused the underreported

incomplete, or missing Form 945-A. Do not include the tax

or overreported amounts. Explanations such as “RRTA

increase reported on CT-1 X on any amended Form 945-A you

compensation was overstated” or “administrative/payroll errors

file.

were discovered” are insufficient and may delay processing

your Form CT-1 X because the IRS may need to ask for a more

If you owe tax and are filing a late Form CT-1 X, that is, after

complete explanation.

the due date for Form CT-1 for the period in which you

discovered the error, you must file an amended Form 945-A

The following is the information we need in your explanation

with the Form CT-1 X. Otherwise, the IRS may assess an

for each error you are correcting.

•

“averaged” FTD penalty.

Form CT-1 X line number(s) affected

•

Payment methods. You may pay the amount you owe on

Date you discovered the error

•

line 17 electronically using the Electronic Federal Tax Payment

Difference (amount of the error)

•

System (EFTPS) or by a check or money order.

Cause of the error

•

The preferred method of payment is EFTPS. For more

You may report the information in paragraph form. The

information, visit , call EFTPS Customer Service

following paragraph is an example.

-7-

Instructions for Form CT-1 X (2010)

Instructions For Form Ct-1 X - 2010 Page 8

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