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Instructions for Form CT-1 X

Department of the Treasury

Internal Revenue Service

(Rev. January 2012)

Adjusted Employer’s Annual Railroad Retirement Tax Return or Claim for Refund

Section references are to the Internal Revenue Code unless

refund rules apply in 10 different situations. You can find Rev.

Rul. 2009-39, at

otherwise noted.

When you discover an error on a previously filed Form CT-1,

What’s New?

you must:

•

Correct that error using Form CT-1 X,

•

Future developments. The IRS has created a page on

File a separate Form CT-1 X for each Form CT-1 that you are

IRS.gov for information about Form CT-1 X and its instructions,

correcting, and

•

at Information about any future

File Form CT-1 X separately. Do not file Form CT-1 X with

developments affecting Form CT-1 X (such as legislation

Form CT-1. But see the exception in the specific instructions for

enacted after we release it) will be posted on that page.

line 20, Did You Reclassify Any Workers?, later.

New Tier I Employee (non-Medicare) tax rate. For 2011

If you did not file a Form CT-1 for one or more years, do not

Forms CT-1, the Tier I Employee (non-Medicare) tax rate has

use Form CT-1 X. Instead, file Form CT-1 for each of those

been reduced from 6.2% to 4.2%.

years. See also When Should You File Form CT-1 X?, later.

However, if you did not file Forms CT-1 because you

Reminder

improperly treated workers as independent contractors or

nonemployees and are now reclassifying them as employees,

see the instructions for line 20, later.

PTIN requirement. Paid preparers must enter their Preparer

Tax Identification Number (PTIN) in the Paid preparer use only

You have additional requirements to complete when filing

section in Part 5 of Form CT-1 X. For more information, visit the

Form CT-1 X, such as certifying that you filed (or will file) all

IRS website at

applicable Forms W-2, Wage and Tax Statements, and Forms

W-2c, Corrected Wage and Tax Statements. For corrections of

Qualified employer’s Tier I tax exemption for 2010 only.

overreported Tier I and Tier II taxes, you must make any

Qualified employers are allowed an exemption for their share

certifications that apply to your situation.

(6.2%) of Tier I employer tax on compensation paid to qualified

Report the correction of underreported and overreported

employees after March 31, 2010, and before January 1, 2011.

amounts for the same tax period on a single Form CT-1 X,

Any errors discovered on previously filed 2010 Forms CT-1 for

unless you are requesting a refund or abatement. If you are

this exemption are corrected on lines 6b, 6c, and 12b of Form

requesting a refund or abatement and are correcting both

CT-1 X.

underreported and overreported amounts, file one Form CT-1 X

Qualified employer’s Tier I tax credit for 2010 only.

correcting the underreported amounts only and a second Form

Qualified employers are allowed a credit in the second quarter

CT-1 X correcting the overreported amounts.

of 2010 for their share (6.2%) of Tier I employer tax on

You will use the adjustment process if you underreported

compensation paid to qualified employees after March 18,

employment taxes and are making a payment, or if you

2010, and before April 1, 2010. Any errors discovered on

overreported employment taxes and will be applying the credit

previously filed 2010 Forms CT-1 for this credit are corrected on

to Form CT-1 X. However, see the Caution, later, if you are

lines 17a and 17b of Form CT-1 X.

correcting overreported amounts during the last 90 days of a

period of limitations. You will use the claim process if you

General Instructions:

overreported employment taxes and are requesting a refund or

abatement of the overreported amount. Follow the chart on the

Understanding Form CT-1 X

back of Form CT-1 X for help in choosing whether to use the

adjustment process or the claim process.

What Is the Purpose of Form CT-1 X?

Be sure to provide a detailed explanation on line 21 for each

correction that you show on Form CT-1 X.

Use Form CT-1 X to correct errors on a Form CT-1 that you

Where Can You Get Help?

previously filed. Use Form CT-1 X to correct:

•

Tier I Employee tax, Tier I Employee Medicare tax, and Tier II

For help filing Form CT-1 X or for questions about RRTA taxes

Employee tax;

and tax corrections, you can:

•

Tier I Employer tax, Tier I Employer Medicare tax, and Tier II

•

Call the IRS toll-free at 1-800-829-4933 (TTY/TDD for the

Employer tax;

hearing impaired at 1-800-829-4059),

•

Exemption for qualified employer’s share of Tier I tax on

•

Visit

and click on “Employment

compensation paid to qualified employees April 1-December

Taxes,” or

31, 2010; and

•

See Pub. 15 (Circular E), Employer’s Tax Guide.

•

Credit for qualified employer’s share of Tier I tax on

See also How Can You Order Forms and Publications from

compensation paid to qualified employees March 19-31, 2010.

the IRS?, later.

Use Form 843, Claim for Refund and Request for

Abatement, to request a refund or abatement of assessed

When Should You File Form CT-1 X?

interest or penalties.

File Form CT-1 X when you discover an error on a previously

We use the terms “correct” and “corrections” on Form

filed Form CT-1.

CT-1 X and in these instructions to include interest-free

TIP

adjustments under sections 6205 and 6413 and claims

However, if your only errors on Form CT-1 relate to RRTA

for refund and abatement under sections 6402, 6414, and 6404.

tax liabilities reported in Part II of Form CT-1 or on Form 945-A,

See Revenue Ruling 2009-39, 2009-52 I.R.B. 951, for

Annual Record of Federal Tax Liability, do not file Form CT-1 X.

examples of how the interest-free adjustment and claim for

For more information about correcting RRTA tax liabilities

Mar 09, 2012

Cat. No. 20339E

Instructions For Form Ct-1 X - Adjusted Employer'S Annual Railroad Retirement Tax Return Or Claim For Refund Page 2

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