Instructions For Form Ct-1 - 2016 (Page 7 of 8) in pdf

Line 14—Adjustments to Taxes Based

line 17 is under $1. Generally, you should show a balance

due on line 17 only if your total railroad retirement taxes

on Compensation

based on compensation for the year (line 15) is less than

$2,500. However, see Accuracy of Deposits Rule, earlier,

Don't use line 14 for prior period adjustments. Make

regarding payments made under the accuracy of deposits

all prior period adjustments on Form CT-1 X.

rule.

CAUTION

If you were required to make federal tax deposits, pay the

Enter on line 14:

amount shown on line 17 by EFT. If you weren't required to

A fractions-of-cents adjustment (see Adjustment for

make federal tax deposits, you may pay the amount shown

fractions of cents, later);

on line 17 by EFT, check, or money order. For more

Credits for overpayments of penalty or interest paid on tax

information on electronic payment options, visit the IRS

for earlier years; and

website at

Any uncollected Tier 1 Employee tax, Tier 1 Employee

If you pay by EFT, file your return using the address under

Medicare tax, Tier 1 Employee Additional Medicare Tax, and

Where To File, earlier. Don't file Form CT-1(V), Payment

Tier 2 Employee tax on tips.

Voucher. If you pay by check or money order, make it

Enter the total of these adjustments in the Tax column. If

payable to “United States Treasury.” Enter your EIN, “Form

you’re reporting both an addition and a subtraction, enter

CT-1,” and “2016” on your check or money order. Complete

only the difference between the two on line 14. If the net

Form CT-1(V) and enclose with Form CT-1.

adjustment is negative, report the amount on line 14 using a

Line 18—Overpayment

minus sign, if possible. If your computer software doesn't

allow the use of minus signs, you may use parentheses.

If line 16 is more than line 15, enter the difference on line 18.

Don't include on line 14 any 2015 overpayment that is

Never make an entry on both lines 18 and 17. If line 18 is

applied to this year's return (this is included on line 16).

less than $1, we will send you a refund or apply it to your next

return only if you ask us in writing to do so.

Required statement. Except for adjustments for fractions of

cents, explain amounts entered on line 14 in a separate

If you deposited more than the correct amount for the

statement. Include your name, employer identification

year, you can have the overpayment refunded or applied to

number (EIN), calendar year of the return, and “Form CT-1”

your next return by checking the appropriate box on line 18.

on each page you attach. Include in the statement the

Check only one box on line 18. If you don't check either box

following information.

or if you check both boxes, generally we will apply the

An explanation of the item the adjustment is intended to

overpayment to your account. We may apply your

correct showing the compensation subject to Tier 1 and Tier

overpayment to any past due tax account that is shown in our

2 taxes and their respective tax rates.

records under your EIN.

The amount of the adjustment.

Part II. Record of Railroad Retirement

The name and account number of any employee from

Tax Liability

whom employee tax was undercollected or overcollected.

How you and the employee have settled any

This is a summary of your yearly tax liability, not a summary

undercollection or overcollection of employee tax.

of deposits made. If line 15 is less than $2,500, don't

Adjustment for fractions of cents. If there is a small

complete Part II or Form 945-A.

difference between the total employee tax (lines 4–7 and 10–

If you’re a monthly schedule depositor, enter your tax

12) and the total actually withheld from employee

liability for each month and figure the total liability for the

compensation including tips, it may be caused by rounding to

year. If you don't enter your tax liability for each month, the

the nearest cent each time you figured payroll. The

IRS won't know when you should have made deposits and

difference, positive or negative, is your fractions-of-cents

may assess an “averaged” failure-to-deposit penalty. See

adjustment to be reported on line 14. If the actual amount

section 11 of Pub. 15. If your tax liability for any month is

withheld is less, report a negative adjustment in the entry

negative, don't enter a negative amount for the month.

space. If the actual amount is more, report a positive

Instead, enter zero for the month and subtract that negative

adjustment.

amount from your tax liability for the next month.

If this is the only entry on line 14, you’re not required

to attach a statement explaining the adjustment.

Note. The amount shown on line V must equal the amount

TIP

shown on line 15.

Line 15—Total Railroad Retirement

If you’re a semiweekly schedule depositor or if you

accumulate $100,000 or more in tax liability on any day in a

Taxes Based on Compensation

deposit period, you must complete Form 945-A and file it with

Form CT-1. Don't complete lines I–V if you file Form 945-A.

Combine the amounts shown on lines 13 and 14 and enter

the result on line 15.

Third-Party Designee

Line 16—Total Deposits for the Year

If you want to allow an employee of your business, a return

preparer, or another third party to discuss your 2016 Form

Enter the total Form CT-1 deposits for the year, including any

CT-1 with the IRS, check the “Yes” box in the Third-Party

overpayment that you applied from filing Form CT-1 X and

Designee section. Also, enter the designee's name, phone

any overpayment that you applied from your 2015 return.

number, and any five digits that person chooses as his or her

Line 17—Balance Due

personal identification number (PIN).

If line 15 is more than line 16, enter the difference on line 17.

By checking “Yes” you authorize the IRS to talk to the

Otherwise, see Overpayment below. You don't have to pay if

person you named (your designee) about any questions we

-7-

Instructions for Form CT-1 (2016)

Instructions For Form Ct-1 - 2016 Page 7

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