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Explanation of line 16 adjustments. Except for adjustments

Third-Party Designee

for fractions of cents, explain amounts entered on line 16 in a

If you want to allow an employee of your business or an

statement. Attach a full sheet of paper that shows at the top

individual paid preparer to discuss your 2001 Form CT-1 with

your name, employer identification number, calendar year of the

the IRS, check the “Yes” box in the Third-Party Designee

return, and “Form CT-1.” Include in the statement the following

section of the return. Also, enter that person’s name, phone

information:

number, and any five digits that person chooses as his or her

1. An explanation of the item the adjustment is intended to

personal identification number (PIN). The designation must

correct showing the compensation subject to Tier I and Tier II

specify an individual and may not refer to your payroll office or a

taxes and the respective tax rates.

tax preparation firm.

2. The year(s) to which the adjustment relates.

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

3. The amount of the adjustment for each year.

call the designated employee or paid preparer to answer any

4. The name and account number of any employee from

questions that may arise during the processing of your return.

whom employee tax was undercollected or overcollected.

You are also authorizing the designated person to:

5. How you and the employee have settled any

•

Give the IRS any information that is missing from your return,

undercollection or overcollection of employee tax.

•

Call the IRS for information about the processing of your

return or the status of your refund or payment(s), and

Note: A timely filed return is considered to be filed on the last

•

Respond to certain IRS notices that you have shared with the

day of February of the year after the close of the tax year.

third-party designee about math errors and return preparation.

Generally, adjustments for prior year returns may be made only

The notices will not be sent to the third-party designee.

within 3 years of that date.

You are not authorizing the third-party designee to receive

Fractions of cents. If there is a difference between the total

any refund check, bind you to anything (including additional tax

employee tax on lines 8, 9, 10, 13, and 14 and the total actually

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

deducted from your employees’ compensation (including tips)

to expand the third-party designee’s authorization, see Pub.

plus the employer’s contribution due to fractions of cents added

947, Practice Before the IRS and Power of Attorney.

or dropped in collecting the tax, report this difference on line 16

The designee authorization cannot be revoked. However,

as a deduction or an addition. If this is the only entry on line 16,

the authorization will automatically expire on the due date for

do not attach a statement to explain the adjustment.

filing your 2002 Form CT-1.

Line 17. Adjusted Total of Taxes Based

Paperwork Reduction Act Notice. We ask for the information

on Compensation

on this form to carry out the Internal Revenue laws of the United

If the net adjustment on line 16 is:

States. We need it to ensure that you are complying with these

•

A decrease, subtract line 16 from line 15.

laws and to figure and collect the right amount of tax.

•

An increase, add line 16 to line 15.

You are not required to provide the information requested on

a form that is subject to the Paperwork Reduction Act unless

Line 19. Total Deposits for the Year

the form displays a valid OMB control number. Books or

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

records relating to a form or its instructions must be retained as

any overpayment applied from your 2000 return.

long as their contents may become material in the

administration of any Internal Revenue law. Generally, tax

Line 20. Balance Due

returns and return information are confidential, as required by

Subtract line 19 from line 18. You should have a balance due

section 6103.

only if line 18 is less than $2,500 unless the balance is a

The time needed to complete and file this form will vary

shortfall amount for monthly schedule depositors as explained

depending on individual circumstances. The estimated average

under the Accuracy of deposits rule on page 3.

time is:

Enter on your check or money order your employer

Recordkeeping — Part I, 11 hr., 14 min.; Part II, 3 hr., 36 min.;

identification number, “Form CT-1,” and “2001.” Pay to the

Learning about the law or the form — Part I, 2 hr., 12 min.;

“United States Treasury.” You do not have to pay if line 20 is

Part II, 6 min.; Preparing, copying, assembling, and sending

less than $1.

the form to the IRS — Part I, 7 hr., 2 min.; Part II, 9 min.

If you have comments concerning the accuracy of these time

Line 21. Overpayment

estimates or suggestions for making this form simpler, we

If you deposited more than the correct amount of taxes for the

would be happy to hear from you. You can write to the Tax

year, check the first box if you want the overpayment applied to

Forms Committee, Western Area Distribution Center, Rancho

your 2002 Form CT-1. Check the second box if you want it

Cordova, CA 95743-0001. Do not send the tax form to this

refunded. If line 21 is less than $1, we will send you a refund or

address. Instead, see Where To File on page 1.

apply it to your next return only on written request.

-6-

Instructions For Form Ct-1 - Employer'S Annual Railroad Retirement Tax Return - 2001 Page 7

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