Instructions For Form Ct-1 X (Rev. February 2015) (Page 6 of 13) in pdf

Part 3: Enter the Corrections for the

Employee Additional Medicare Tax that you did not

withhold from your employees.

Calendar Year You Are Correcting

5. Certifying Claims

What Amounts Should You Report in Part 3?

If you are filing a claim for refund or abatement of

overreported RRTA tax and/or Tier 1 Employee Additional

On lines 6–18, columns 1 and 2, show amounts for all of

Medicare Tax and checked the box on line 2, check the

your employees, not just for those employees whose

appropriate box on line 5. You may need to check more

amounts you are correcting.

than one box. If you obtained written statements or

If a correction that you report in column 4 includes both

consents from some employees but you could not locate

underreported and overreported amounts (see the

employees or secure the statements of the remaining

instructions for line 21), provide details for each error on

employees, check all applicable boxes. Provide a

line 23.

summary on line 23 of the amount of the corrections for

the employees who provided statements or consents and

If you previously adjusted or amended Form CT-1

those who did not.

using Form CT-1 X, or because of an IRS

examination change, show amounts in column 2

You may not file a refund claim to correct Tier 1

CAUTION

that include those previously reported corrections.

Employee Additional Medicare Tax actually

withheld from employees.

CAUTION

6. Tier 1 Employer Tax—Compensation

5a. Check the box on line 5a if your overreported tax

If you are correcting the compensation (other than tips

includes overcollected Employee RRTA taxes for each

and sick pay) for the Tier 1 Employer tax you reported on

affected employee. You are certifying that you repaid or

Form CT-1, line 1, enter the total corrected amount for all

reimbursed to the employees their share of the prior year

employees in column 1. In column 2, enter the amount

Employee RRTA taxes and you received written

you originally reported. In column 3, enter the difference

statements from those employees stating that they did not

between columns 1 and 2. If you (or the IRS) previously

and will not receive a refund or credit for the prior year

corrected the amount reported on Form CT-1, line 1, enter

taxes.

in column 2 the amount after any previous corrections.

5b. Check the box on line 5b if your overreported tax

includes overcollected prior year Employee RRTA taxes

line 6 (column 1)

for each affected employee and you have not yet repaid or

-line 6 (column 2)

reimbursed the Employee RRTA taxes. You are certifying

line 6 (column 3)

If the amount in column 2 is larger than

that you received consent from each affected employee to

the amount in column 1, use a minus

file a claim on the employee share of those taxes and you

received written statements from those employees stating

that they did not and will not receive a refund or credit for

the overcollected taxes. Do not send these statements

Multiply the amount in column 3 by .062 (6.2% tax rate)

and consents to the IRS. Keep them for your records.

and enter the result in column 4.

Generally, all employment tax records must be kept for at

least 4 years.

line 6 (column 3)

In certain situations, you may not have repaid or

.062

reimbursed your employees or obtained their consents

line 6 (column 4)

If the amount in column 3 used a minus sign,

prior to filing a claim, such as in cases where the period of

also use a minus sign in column 4.

limitations on credit or refund is about to expire. In those

situations, file Form CT-1 X, but do not check a box on

line 5. Tell us on line 23 that you have not repaid or

Example—Tier 1 Employer compensation

reimbursed employees or obtained consents at the time

decreased. You reported $9,000 as Tier 1 Employer

you file the claim. However, you must repay or reimburse

compensation in computing the tax on line 1 of your 2013

your employees and certify that you have done so before

Form CT-1. In December of 2014, you discovered that you

the IRS can allow the claim.

included $2,000 in compensation for one of your

employees twice. To correct the error, figure the

5c. Check the box on line 5c to certify that your

difference on Form CT-1 X as shown.

overreported tax is only for the Employer RRTA taxes.

This applies when affected employees did not give you

consent to file a claim for refund for the Employee RRTA

Column 1 (corrected amount)

7,000.00

taxes, they could not be found, or they did not give you a

Column 2 (Form CT-1, line 1)

- 9,000.00

statement described on line 5b.

Column 3 (difference)

-2,000.00

5d. Check the box on line 5d to certify that your

overreported amount is only for RRTA taxes and/or Tier 1

Use the difference in column 3 to determine your tax

Employee Additional Medicare Tax that you did not

correction.

withhold from your employees.

-6-

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

Instructions For Form Ct-1 X (Rev. February 2015) Page 6

Related Articles

Related forms

Related Categories