Instructions For Form Ct-1 X (Rev. February 2015) (Page 2 of 13) in pdf

When Should You File Form CT-1 X?

of those years. See also When Should You File Form

CT-1 X, later. However, if you did not file Forms CT-1

because you improperly treated workers as independent

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

contractors or nonemployees and are now reclassifying

previously filed Form CT-1.

them as employees, see the instructions for line 22, later.

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

RRTA tax liabilities reported in Part II of Form CT-1 or on

Report the correction of underreported and

Form 945-A, Annual Record of Federal Tax Liability, do

overreported amounts for the same tax period on a single

not file Form CT-1 X. To correct federal tax liabilities

Form CT-1 X, unless you are requesting a refund or

reported in Part II of Form CT-1, file Form 945-A, but only

abatement. If you are requesting a refund or abatement

enter the monthly totals. The daily entries are not required.

and are correcting both underreported and overreported

For more information about correcting RRTA tax liabilities

amounts, file one Form CT-1 X correcting the

reported on Form 945-A, see the Form 945-A instructions.

underreported amounts only and a second Form CT-1 X

correcting the overreported amounts.

Due dates. The due date for filing Form CT-1 X depends

on when you discover an error and if you underreported or

You will use the adjustment process if you

overreported tax. If you underreported tax, see

underreported employment taxes and are making a

Underreported tax, later. For overreported amounts, you

payment, or if you overreported employment taxes and

may choose to either make an interest-free adjustment or

will be applying the credit to Form CT-1 for the period

file a claim for refund or abatement. If you are correcting

during which you file Form CT-1 X. However, see the

overreported amounts, see Overreported tax—adjustment

Caution under Is There a Deadline for Filing Form CT-1 X,

process or Overreported tax—claim process, later.

later, if you are correcting overreported amounts during

If any due date falls on a Saturday, Sunday, or legal

the last 90 days of a period of limitations. You will use the

holiday, you may file Form CT-1 X on the next business

claim process if you overreported employment taxes and

day. If we receive Form CT-1 X after the due date, we will

are requesting a refund or abatement of the overreported

treat Form CT-1 X as filed on time if the envelope

amount. Follow the chart on the back of Form CT-1 X for

containing Form CT-1 X is properly addressed, contains

help in choosing whether to use the adjustment process

sufficient postage, and is postmarked by the U.S. Postal

or the claim process. Be sure to provide a detailed

Service on or before the due date, or sent by an

explanation on line 23 for each correction that you show

IRS-designated private delivery service on or before the

on Form CT-1 X.

due date. If you do not follow these guidelines, we will

Continue to report current year adjustments on Form

consider Form CT-1 X filed when it is actually received.

CT-1, line 14.

See Pub. 15 (Circular E) for more information on legal

holidays and IRS-designated private delivery services.

You have additional requirements to complete when

Underreported tax. If you are correcting underreported

filing Form CT-1 X, such as certifying that you filed (or will

tax, you must file Form CT-1 X by the due date of the

file) all applicable Forms W-2, Wage and Tax Statements,

return for the return period in which you discovered the

and Forms W-2c, Corrected Wage and Tax Statements,

error and pay the amount you owe by the time you file.

with the Social Security Administration (SSA). For

Filing and paying on time generally will ensure that your

corrections of overreported Tier 1 and Tier 2 taxes, you

correction is interest free and not subject to failure-to-pay

must make any certifications that apply to your situation.

or failure-to-deposit (FTD) penalties. See What About

Be sure to give us a detailed explanation on line 23 for

Penalties and Interest, later. For details on how to make a

each correction you show on Form CT-1 X.

payment, see the instructions for line 20, later.

If Form CT-1 X is filed late (after the due date of the

Do not use Form CT-1 X to correct Form 941,

return for the return period in which you discovered the

941-SS, 943, 944, or 945. Instead, use the "X"

error), you must attach an amended Form 945-A to Form

form that corresponds to those forms (Form

CAUTION

CT-1 X. Otherwise, the IRS may assess an “averaged”

941-X, 943-X, 944-X, or 945-X).

failure-to-deposit penalty. The total tax reported on Form

Where Can You Get Help?

945-A, line M, must match the corrected total tax (Form

CT-1, line 15 (line 13 for years ending before January 1,

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

2013), combined with any correction reported on Form

taxes and tax corrections, you can:

CT-1 X, line 20) for the year, less any previous

Visit the IRS website at

and

abatements and interest-free tax assessments.

click on the Employment Taxes link under Businesses

Example—You owe tax. On March 11, 2014, you

Topics,

discovered that you underreported $1,000 of RRTA

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

compensation on your 2013 Form CT-1. File Form CT-1 X

Call the IRS Business and Specialty Tax Line toll free at

and pay the amount you owe by March 2, 2015, because

1-800-829-4933 or 1-800-829-4059 (TDD/TTY for

you discovered the error in 2014, and March 2, 2015, is

persons who are deaf, hard of hearing, or have a speech

the due date for that year. If you file Form CT-1 X before

disability) Monday–Friday from 7:00 a.m. – 7:00 p.m. local

March 2, 2015, pay the amount you owe by the time you

time (Alaska and Hawaii follow Pacific time).

file.

See also How Can You Order Forms, Instructions, and

Publications from the IRS, later.

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Instructions for Form CT-1 X (Rev. 2-2015)

Instructions For Form Ct-1 X (Rev. February 2015) Page 2

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