Instructions For Form Ct-1 X (Rev. February 2015) printable pdf download

Instructions for Form CT-1 X

Department of the Treasury

Internal Revenue Service

(Rev. February 2015)

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

Section references are to the Internal Revenue Code

Period of limitations to make certain corrections ex-

unless otherwise noted.

pired. Generally, you may correct overreported taxes on

Future Developments

a previously filed Form CT-1 if you file Form CT-1 X within

3 years of the date Form CT-1 was filed or 2 years from

For the latest information about developments related to

the date you paid the tax reported on Form CT-1,

Form CT-1 X and its instructions, such as legislation

whichever is later. For purposes of the period of

enacted after they were published, go to

limitations, Form CT-1 is considered filed on the last day

ct1x.

in February of the succeeding year if filed before that date.

What's New

The period of limitations to correct the qualified

employer's Tier 1 tax exemption for 2010 and the qualified

Employee consents to support a claim for refund.

employer's Tier 1 tax credit for 2010 expired on February

Notice 2015-15 provides guidance to employers on the

28, 2014, for most employers. The lines formerly used for

requirements for employee consents used by an employer

these corrections were removed from Form CT-1 X. If the

to support a claim for refund of overcollected Railroad

period of limitations for any of these corrections is still

Retirement Tax Act (RRTA) taxes. The notice and

open, you will need to file the February 2013 revision of

proposed revenue procedure clarifies the basic

Form CT-1 X. The February 2013 revision of Form CT-1 X

requirements for a request for a consent and for the

is available on IRS.gov.

employee consent itself, and permits a consent to be

requested, furnished, and retained in an electronic format

General Instructions:

as an alternative to a paper format. The notice also

Understanding Form CT-1 X

requests comments and contains guidance concerning

what constitutes “reasonable efforts” if a consent is not

What Is the Purpose of Form CT-1 X?

secured to permit the employer to claim a refund of the

employer share of overcollected RRTA taxes. For more

Use Form CT-1 X to correct errors on a previously filed

information, see Notice 2015-15, 2015-9 I.R.B. 687,

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

available at irb/2015-9_IRB/ar07.html.

Tier 1 Employee tax, Tier 1 Employee Medicare tax,

Retroactive increase in excludible transit benefits.

Tier 1 Employee Additional Medicare Tax, and Tier 2

The Tax Increase Prevention Act of 2014 increased the

Employee tax; and

monthly transit benefit exclusion from $130 per

Tier 1 Employer tax, Tier 1 Employer Medicare tax, and

participating employee to $250 per participating employee

Tier 2 Employer tax.

for the period of January 1, 2014, through December 31,

2014. Employers were provided instructions on how to

Use Form 843, Claim for Refund and Request for

correct the social security and Medicare taxes on the

Abatement, to request a refund or abatement of assessed

excess transit benefits in Notice 2015-2, 2015-4 I.R.B.

interest or penalties. Do not request a refund or

334, available at irb/2015-4_IRB/ar06.html.

abatement of assessed interest or penalties on Form

CT-1 or Form CT-1 X.

Reminders

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

Correcting Tier 1 Employee Additional Medicare Tax

Form CT-1 X and in these instructions to include

TIP

withholding. Beginning in 2013, compensation

interest-free adjustments under sections 6205

(including tips) and sick pay subject to Tier 1 Employee

and 6413 and claims for refund and abatement under

Additional Medicare Tax withholding are reported on Form

sections 6402, 6414, and 6404. See Rev. Rul. 2009-39 for

CT-1, lines 6 and 12. Any errors discovered on a

examples of how the interest-free adjustment and claim

previously filed Form CT-1 are corrected on Form CT-1 X,

for refund rules apply in 10 different situations. You can

lines 11 and 17. For more information about Tier 1

find Rev. Rul. 2009-39, 2009-52 I.R.B. 951 at

Employee Additional Medicare Tax withholding, see the

irb/2009-52_IRB/ar14.html.

Instructions for Form CT-1 and go to IRS.gov and enter

“Additional Medicare Tax” in the search box. See the

When you discover an error on a previously filed Form

instructions for lines 11 and 17, later, for more information

CT-1, you must:

on the types of errors that can be corrected and how the

Correct that error using Form CT-1 X,

correction is reported on Form CT-1 X.

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

Tier 1 Employee tax rate for 2011 and 2012. In 2011

you are correcting, and

and 2012, the Tier 1 Employee tax rate was 4.2% and Tier

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

1 Employer tax rate was 6.2% (10.4% total). Be sure to

with Form CT-1.

use the correct rate when reporting corrections on lines 9

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

and 15.

do not use Form CT-1 X. Instead, file Form CT-1 for each

Mar 02, 2015

Cat. No. 20339E

Instructions For Form Ct-1 X (Rev. February 2015)

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