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17a. and 17b. Credit for Exempt Taxes Paid First

Payment methods. You may pay the amount you owe on

line 18 electronically using the Electronic Federal Tax Payment

Quarter of 2010

System (EFTPS) or by a check or money order.

Complete lines 17a and 17b to adjust the tax credit for Tier I

•

The preferred method of payment is EFTPS. For more

employer tax on compensation paid to qualified employees from

information, visit

or , call

March 19-31, 2010.

EFTPS Customer Service at 1-800-555-4477 toll free, or get

17a. Number of qualified employees paid exempt

Pub. 966, The Secure Way to Pay Your Federal Taxes.

•

compensation (including sick pay) March 19-31, 2010.

If you pay by check or money order, make it payable to

Enter the total corrected number from line 15a of Form CT-1 in

“United States Treasury.” On your check or money order, be

column 1. In column 2, enter the amount you originally reported

sure to write your EIN, “Form CT-1 X,” and the year corrected.

in the previously filed 2010 Form CT-1 or as previously

You do not have to pay if the amount you owe is less than

corrected. In column 3, enter the difference between 1 and 2.

$1.

See Correcting Tier I Employer RRTA Tax Exemption on page

Previously assessed FTD penalty. If line 18 reflects

5 for the definition of qualified employee.

overreported tax and the IRS previously assessed an FTD

Be sure to explain the reasons for this correction on line 21.

penalty, you may be able to reduce the penalty. For more

information, see the instructions for Form 945-A.

17b. Exempt compensation (other than tips) paid to

qualified employees March 19-31, 2010. Enter the total

Part 4: Explain Your Corrections for This

corrected amount from line 15b of Form CT-1 in column 1. In

column 2, enter the amount you originally reported or as

Year

previously corrected. In column 3, enter the difference between

columns 1 and 2. See Correcting Tier I Employer RRTA Tax

19. Correction of Both Underreported and

Exemption on page 5 for the definition of exempt compensation.

Overreported Amounts

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

enter that result in column 4.

Check the box on line 19 if any corrections you entered on lines

6a through 17b in column 3 reflect both underreported and

Be sure to explain the reasons for this correction on line 21.

overreported amounts.

Lines 17a and 17b apply only for 2010.

Example. If you had an increase to Tier I Employer

compensation of $15,000 for employee A and a decrease to

CAUTION

Tier I Employer compensation of $5,000 for employee B, you

would enter $10,000 on line 6a, column 3. That $10,000

18. Total

represents the net change from corrections.

Combine the amounts on lines 6a through 17b of column 4.

On line 21, you must explain the reason for both the $15,000

Enter the result on line 18.

increase and the $5,000 decrease.

Example. You entered “-500.00” in column 4 of line 6a,

20. Did You Reclassify Any Workers?

“-100.00” in column 4 of line 7, and “1,400.00” in column 4 of

line 16. Combine these amounts and enter “800.00” in column 4

Check the box on line 20 if you reclassified any workers to be

of line 18.

independent contractors or nonemployees. Also check this box

if the IRS (or you) determined that workers you treated as

Line 6a

-500.00

independent contractors or nonemployees should be classified

Line 7

-100.00

as employees. On line 21, provide a detailed reason why any

Line 16

+1,400.00

worker was reclassified.

Line 18

800.00

Return not filed because you did not treat any workers as

employees. If you did not previously file Form CT-1 because

Your credit. If the amount entered on line 18 is less than zero,

you mistakenly treated all workers as independent contractors

for example, “-115.00,” you have a credit because you

or as nonemployees, file a Form CT-1 for each delinquent year.

overreported your RRTA taxes.

•

If you checked the box on line 1, include this amount on the

Write “Misclassified Employees” in dark, bold letters across

“Total railroad retirement tax deposits” line of Form CT-1 for the

the top margin of page 1 of each Form CT-1. Complete Form

year during which you filed Form CT-1 X. Do not make any

CT-1 using the Instructions for Form CT-1. Attach a Form

changes to your Record of Railroad Retirement Tax Liability in

CT-1 X to each Form CT-1. Complete the top of Form CT-1 X,

Part II of Form CT-1 or on Form 945-A, if your Form CT-1 or

including the date you discovered the error, and provide a

Form 945-A is filed timely. The amounts reported on the record

detailed explanation on line 21.

should reflect your actual tax liability for the period.

21. Explain Your Corrections

•

If you checked the box on line 2, you are filing a claim for

Treasury regulations require you to explain in detail the grounds

refund or abatement of the amount shown.

and facts relied upon to support each correction. On line 21,

If your credit is less than $1, we will send a refund or apply it

describe in detail each correction you entered in column 4 on

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

lines 6a through 17b. If you need more space, attach additional

Amount you owe. If the amount entered on line 18 is a

sheets, but be sure to write your name, EIN, and calendar year

positive number, you must pay the amount you owe when you

on the top of each sheet.

file Form CT-1 X. You may not use any credit that you show on

You must describe the events that caused the underreported

another Form CT-1 X to pay the amount you owe, even if you

or overreported amounts. Explanations such as “RRTA

filed for the amount you owe and the credit at the same time.

compensation was overstated” or “administrative/payroll errors

If you owe tax and are filing a timely Form CT-1 X, do not file

were discovered” are insufficient and may delay processing

an amended Form 945-A unless you were assessed a

your Form CT-1 X because the IRS may need to ask for a more

failure-to-deposit (FTD) penalty caused by an incorrect,

complete explanation.

incomplete, or missing Form 945-A. Do not include the tax

The following is the information we need in your explanation

increase reported on Form CT-1 X on any amended Form

for each error you are correcting.

945-A you file.

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Form CT-1 X line number(s) affected.

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If you owe tax and are filing a late Form CT-1 X, that is, after

Date you discovered the error.

•

the due date for Form CT-1 for the period in which you

Difference (amount of the error).

•

discovered the error, you must file an amended Form 945-A

Cause of the error.

with the Form CT-1 X. Otherwise, the IRS may assess an

You may report the information in paragraph form. The

“averaged” FTD penalty.

following paragraph is an example.

-8-

Instructions for Form CT-1 X (2011)

Instructions For Form Ct-1 X - Adjusted Employer'S Annual Railroad Retirement Tax Return Or Claim For Refund Page 9

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