Instructions For Form Ct-1 - 2008 (Page 6 of 7) in pdf

Do not include on line 12 the 2007 overpayment that is

By checking the “Yes” box, you are authorizing the IRS to

applied to this year’s return (this is included on line 14).

speak with the designee to answer any questions relating to

the processing of or the information reported on Form CT-1.

Required statement. Except for adjustments for fractions

You are also authorizing the designee to:

of cents, explain amounts entered on line 12 in a separate

•

Exchange information concerning Form CT-1 with the

statement. Include your name, employer identification

IRS, and

number (EIN), calendar year of the return, and “Form CT-1”

•

Respond to certain IRS notices that you have shared with

on each page you attach. Include in the statement the

your designee relating to Form CT-1. The IRS will not send

following information.

•

notices to your designee.

An explanation of the item the adjustment is intended to

correct showing the compensation subject to Tier I and

You are not authorizing the designee to receive any

Tier II taxes and their respective tax rates.

refund check, bind you to anything (including additional tax

•

The year(s) to which the adjustment relates.

liability), or otherwise represent you before the IRS. If you

•

The amount of the adjustment for each year.

want to expand the designee’s authority, see Pub. 947,

•

The name and account number of any employee from

Practice Before the IRS and Power of Attorney.

whom employee tax was undercollected or overcollected.

The authorization will automatically expire 1 year from the

•

How you and the employee have settled any

due date (without regard to extensions) for filing your 2008

undercollection or overcollection of employee tax.

Form CT-1. If you or your designee wants to revoke this

•

When you discovered the error.

authorization, send a written statement of revocation to:

Department of the Treasury, Internal Revenue Service

A timely filed return is considered to be filed on the

Center, Cincinnati, OH 45999. See Pub. 947 for more

TIP

last day of February of the year after the close of the

information.

tax year. Generally, adjustments for prior year

returns may be made only within 3 years of that date.

Who Must Sign

Fractions of cents. If there is a difference between the

Form CT-1 must be signed as follows:

total employee tax (lines 4, 5, 6, 9, and 10) and the total

•

Sole proprietorship — The individual who owns the

actually deducted (employee compensation including tips

plus the employer’s contribution) due to rounding fractions of

business.

•

cents when collecting the tax, report the deduction or

Corporation (including an LLC treated as a

addition on line 12.

corporation) — The president, vice-president, or other

principal officer duly authorized to act.

If this is the only entry on line 12, you are not

•

Partnership (including an LLC treated as a partnership)

TIP

required to attach a statement explaining the

or unicorporated organization — A responsible and duly

adjustment.

authorized member or officer having knowledge of its affairs.

•

Single member limited liability company (LLC) treated

Line 13— Total Railroad Retirement

as a disregarded entity — The owner of the limited liability

company (LLC).

Taxes Based on Compensation

•

Trust or estate — The fiduciary.

Combine the amounts shown on lines 11 and 12 and enter

Form CT-1 may also be signed by a duly authorized

the result on line 13.

agent of the taxpayer if a valid power of attorney has been

filed.

Line 14— Total Deposits for the Year

Alternative Signature Method

Enter the total Form CT-1 taxes you deposited. Also, include

any overpayment applied from your 2007 Form CT-1.

Corporate officers or duly authorized agents may sign Form

CT-1, Employer’s Annual Railroad Retirement Tax Return,

Line 15— Balance Due

by rubber stamp, mechanical device, or computer software

Subtract line 14 from line 13. You should have a balance

program. For details and required documentation, see Rev.

due only if line 13 is less than $2,500, unless the balance

Proc. 2005-39 at

due is a shortfall amount for monthly schedule depositors as

Paid Preparers

explained under the Accuracy of Deposits Rule on page 4.

Form CT-1(V), Payment Voucher, has instructions for

A paid preparer must sign Form CT-1 and provide the

making a payment with Form CT-1. You do not have to pay

information in the Paid Preparer’s Use Only section of Part I

if line 15 is less than $1.

if the preparer was paid to prepare Form CT-1 and is not an

employee of the filing entity. The preparer must give you a

Line 16— Overpayment

copy of the return in addition to the copy to be filed with IRS.

Enter the overpayment on the designated entry line. Then

If you are a paid preparer, write your SSN and Preparer

check the appropriate box to have the overpayment applied

Tax Identification Number (PTIN) in the space provided.

to your 2009 Form CT-1 or refunded to you. If line 16 is less

Include your complete address. If you work for a firm, write

than $1, we will send you a refund or apply it to your next

the firm’s name and the EIN of the firm. You can apply for a

return only on written request.

PTIN using Form W-7P, Application for Preparer Tax

Identification Number. You cannot use your PTIN in place of

Third-Party Designee

the EIN of the tax preparation firm.

If you want to allow an employee of your business, a return

Generally, you are not required to complete this section if

preparer, or other third party to discuss your 2008

you are filing the return as a reporting agent and have a

Form CT-1 with the IRS, check the “Yes” box in the

valid Form 8655, Reporting Agent Authorization, on file with

Third-Party Designee section of Form CT-1. Also, enter the

the IRS. However, a reporting agent must complete this

designee’s name, phone number, and any five digits that

section if the reporting agent offered legal advice, for

person chooses as his or her personal identification number

example, by advising the client on determining whether its

workers are employees or independent contractors for

(PIN).

federal tax purposes.

-6-

Instructions For Form Ct-1 - 2008 Page 6

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