Looking for a Form Ct-1 Templates? Download it for free!

Example — You want your overreported tax applied as a

use parentheses to report negative amounts, you may use

credit on Form CT-1. On December 22, 2011, you discover

them.

you overreported your tax on your 2010 Form CT-1 and want to

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

choose the adjustment process. To allow the IRS enough time

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

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

accurately if you follow these guidelines.

2012.

•

Type or print your entries.

•

Use Courier font (if possible) for all typed or

computer-generated entries.

Specific Instructions

•

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

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

Part 1: Select ONLY One Process

decimal point and cents to the right of it.

•

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

whole dollars.

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

•

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

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

•

Staple multiple sheets in the upper-left corner.

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

both boxes.

What About Penalties and Interest?

1. Adjusted Railroad Retirement Tax Return

Generally, your correction of an underreported amount will not

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

Check the box on line 1 if you are correcting underreported

or interest if you:

amounts or overreported amounts and you would like to use the

•

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

adjustment process to correct the errors.

discover the error),

If you are correcting both underreported amounts and

•

Pay the amount shown on line 18 when you file Form

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

CT-1 X,

you check this box, any negative amount shown on line 18 will

•

Enter the date you discovered the error, and

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

•

Explain in detail the grounds and facts relied on to support

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

the correction.

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

No correction will be eligible for interest-free treatment if any

page.

of the following apply.

If you owe tax. Pay the amount shown on line 18 when you

•

The underreported amounts relate to an issue that was

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

raised in an examination of a prior period,

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

•

You knowingly underreported your employment tax liability,

error, and explain the correction on line 21.

•

You received a notice and demand for payment, or

•

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

You received a Notice of Determination of Worker

a negative amount on line 18) and want the IRS to apply the

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 18 of Form CT-1 X may not be fully

The process for adjusting Form CT-1 or filing a claim to correct

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

a previously filed Form CT-1 is outlined 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

line 18 on page 8.

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

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

2012, you discover an error that results in additional tax on your

CAUTION

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

2010 Form CT-1. File Form CT-1 X by February 28, 2013, 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 2012 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, choose one of the following

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

options.

line 18. Do not check this box if you are correcting ANY

•

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

underreported amounts on this form.

any credit (negative amount) from line 18 to Form CT-1 for the

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

year during which you file Form CT-1 X.

•

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

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

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

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

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

amount shown on line 18.

The IRS usually processes claims shortly after they are filed.

To ensure that the IRS has enough time to process a

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

credit for an overreporting adjustment in the year

TIP

or selected to be examined. See Publication 556, Examination

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

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

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

information.

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

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

overreported amount in December, you may want to file Form

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

CT-1 X in the first 11 months of the next year. However, there

the amount shown on line 18, plus any interest that applies.

must be 90 days remaining on the period of limitations when

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

Part 2: Complete the Certifications

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

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

CT-1, thus avoiding an erroneous balance due notice from the

You must complete all certifications that apply by checking the

IRS. See the example below.

appropriate boxes. If all of your corrections relate to

-3-

Instructions for Form CT-1 X (2011)

Instructions For Form Ct-1 X - Adjusted Employer'S Annual Railroad Retirement Tax Return Or Claim For Refund Page 4

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