Instructions For Form Ct-1 X (Rev. February 2015) (Page 4 of 13) in pdf

How Should You Report Negative Amounts?

Example—You underreported RRTA taxes. On

June 23, 2014, you discovered an error that results in

Form CT-1 X uses negative numbers to show reductions

additional tax on your 2013 Form CT-1. File Form CT-1 X

in tax (credits) and positive numbers to show additional

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

tax (amounts you owe).

time you file. See When Should You File Form CT-1 X,

earlier. Do not attach Form CT-1 X to your 2014 Form

When reporting a negative amount in columns 3 and 4,

CT-1.

use a minus sign instead of parentheses. For example,

If you overreported the tax. If you overreported the

enter “-10.59” instead of “(10.59).” However, if you are

tax on a previously filed Form CT-1, choose one of the

completing the return on your computer and your software

following options.

only allows you to use parentheses to report negative

amounts, you may use them.

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

apply any credit (negative amount) from line 20 to Form

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

CT-1 for the year during which you file Form CT-1 X.

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

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

accurately if you follow these guidelines.

claim on Form CT-1 X requesting a refund or abatement

of the amount shown on line 20.

Type or print your entries.

Use Courier font (if possible) for all typed or

To ensure that the IRS has enough time to

computer-generated entries.

process a credit for an overreporting

TIP

Omit dollar signs. You may use commas and decimal

adjustment in the year during which you file

points, if desired. Enter dollar amounts to the left of any

Form CT-1 X, you are encouraged to file Form CT-1 X

preprinted decimal point and cents to the right of it.

correcting the overreported amount in the first 11 months

Always show an amount for cents. Do not round entries

of a year. For example, if you discover an overreported

to whole dollars.

amount in December, you may want to file Form CT-1 X in

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

the first 11 months of the next year. However, there must

page 3.

be 90 days remaining on the period of limitations when

Staple multiple sheets in the upper-left corner.

you file Form CT-1 X. See the Caution under Is There a

Deadline for Filing Form CT-1 X, earlier. This should

What About Penalties and Interest?

ensure that the IRS will have enough time to process the

Generally, your correction of an underreported amount will

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

not be subject to a failure-to-pay penalty, FTD penalty, or

file Form CT-1, thus avoiding an erroneous balance due

interest if you:

notice from the IRS. See the example next.

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

Example—You want your overreported tax applied

discover the error),

as a credit on Form CT-1. On December 18, 2015, you

Pay the amount shown on line 20 by the time you file

discover you overreported your tax on your 2014 Form

Form CT-1 X,

CT-1 and want to choose the adjustment process. To

Enter the date you discovered the error, and

allow the IRS enough time to process the credit, you file

Explain in detail the grounds and facts relied on to

Form CT-1 X on February 8, 2016, and take the credit on

support the correction.

your 2016 Form CT-1.

No correction will be eligible for interest-free treatment

if any of the following apply.

Specific Instructions

The underreported amounts relate to an issue that was

Part 1: Select ONLY One Process

raised in an examination of a prior period.

You knowingly underreported your employment tax

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

liability.

adjusted railroad retirement tax return or a claim for refund

You received a notice and demand for payment.

or abatement, you must check one box on either line 1 or

You received a Notice of Determination of Worker

line 2. Do not check both boxes.

Classification.

1. Adjusted Railroad Retirement Tax Return

If you receive a notice about a penalty after you file this

return, reply to the notice with an explanation and we will

Check the box on line 1 if you are correcting

determine if you meet reasonable-cause criteria. Do not

underreported amounts or overreported amounts and you

attach an explanation when you file your return.

would like to use the adjustment process to correct the

errors.

Overview of the Process

If you are correcting both underreported amounts and

The process to correct a previously filed Form CT-1 or file

overreported amounts on this form, you must check this

a claim is outlined below.

box. If you check this box, any negative amount shown on

If you underreported the tax. If you underreported

line 20 will be applied as a credit (tax deposit) to your

the tax on a previously filed Form CT-1, check the box on

Form CT-1 for the year in which you are filing this form.

line 1 and pay any additional amount you owe by the time

See Example—You want your overreported tax applied as

you file Form CT-1 X. For details on how to make a

a credit on Form CT-1, earlier.

payment, see the instructions for line 20, later.

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

Instructions For Form Ct-1 X (Rev. February 2015) Page 4

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