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If you overreported the tax. If you overreported the tax on

at different times, enter the earliest date you discovered them

here. Report any subsequent dates and related errors on line

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

21.

options.

•

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

Must You Make an Entry on Each Line?

any credit (negative amount) from line 18 to Form CT-1 for the

You must provide all of the information requested at the top of

year during which you file Form CT-1 X.

•

page 1 of Form CT-1 X. You must check one box (but not both)

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

in Part 1. You must check the box on line 3 and any boxes that

on Form CT-1 X requesting a refund or abatement of the

apply on lines 4 and 5. In Part 3, if any line does not apply,

amount shown on line 18.

leave it blank. Complete Parts 4 and 5 as instructed.

To ensure that the IRS has enough time to process a

How Should You Report Negative Amounts?

credit for an overreporting adjustment in the year

TIP

during which you file Form CT-1 X, you are encouraged

Form CT-1 X uses negative numbers to show reductions in tax

to file Form CT-1 X correcting the overreported amount in the

(credits) and positive numbers to show additional tax (amounts

first 11 months of a year. For example, if you discover an

you owe).

overreported amount in December, you may want to file Form

When reporting a negative amount in columns 3 and 4, use

CT-1 X in the first 11 months of the next year. However, there

a minus sign instead of parentheses. For example, enter

must be 90 days remaining on the period of limitations when

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

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

return on your computer and your software only allows you to

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

use parentheses to report negative amounts, you may use

that the IRS will have enough time to process the Form CT-1 X

them.

so that the credit will be posted before you file Form CT-1, thus

avoiding an erroneous balance due notice from the IRS. See

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

the example next.

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

Example — You want your overreported tax applied as a

accurately if you follow these guidelines.

•

credit on Form CT-1. On December 22, 2012, you discover

Type or print your entries.

•

you overreported your tax on your 2011 Form CT-1 and want to

Use Courier font (if possible) for all typed or

choose the adjustment process. To allow the IRS enough time

computer-generated entries.

•

to process the credit, you file Form CT-1 X on February 7,

Omit dollar signs. You may use commas and decimal points,

2013.

if desired. Enter dollar amounts to the left of any preprinted

decimal point and cents to the right of it.

•

Always show an amount for cents. Do not round entries to

whole dollars.

Specific Instructions

•

Complete all three pages and sign Form CT-1 X on page 3.

•

Staple multiple sheets in the upper-left corner.

Part 1: Select ONLY One Process

What About Penalties and Interest?

Generally, your correction of an underreported amount will not

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

be subject to a failure-to-pay penalty, failure-to-deposit penalty,

railroad retirement tax return or a claim for refund or abatement,

or interest if you:

you must check one box on either line 1 or line 2. Do not check

•

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

both boxes.

discover the error),

1. Adjusted Railroad Retirement Tax Return

•

Pay the amount shown on line 18 when you file Form

CT-1 X,

Check the box on line 1 if you are correcting underreported

•

Enter the date you discovered the error, and

amounts or overreported amounts and you would like to use the

•

Explain in detail the grounds and facts relied on to support

adjustment process to correct the errors.

the correction.

If you are correcting both underreported amounts and

No correction will be eligible for interest-free treatment if any

overreported amounts on this form, you must check this box. If

of the following apply.

you check this box, any negative amount shown on line 18 will

•

The underreported amounts relate to an issue that was

be applied as a credit (tax deposit) to your Form CT-1 for the

raised in an examination of a prior period,

year in which you are filing this form. See Example — You want

•

You knowingly underreported your employment tax liability,

your overreported tax applied as a credit to Form CT-1, earlier.

•

You received a notice and demand for payment, or

•

If you owe tax. Pay the amount shown on line 18 when you

You received a Notice of Determination of Worker

file Form CT-1 X. Generally, you will not be charged interest if

Classification.

you file on time, pay on time, enter the date you discovered the

error, and explain the correction on line 21.

Overview of the Process

If you have a credit. You overreported RRTA taxes (you have

The process for adjusting Form CT-1 or filing a claim to correct

a negative amount on line 18) and want the IRS to apply the

a previously filed Form CT-1 is outlined below.

credit to Form CT-1 for the period during which you filed Form

CT-1 X. The IRS will apply your credit on the first day of the

If you underreported the tax. If you underreported the tax

Form CT-1 year during which you filed Form CT-1 X. However,

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

the credit you show on line 18 of Form CT-1 X may not be fully

pay any additional amount you owe when you file Form CT-1 X.

available on your Form CT-1 if the IRS corrects it during

For details on how to make a payment, see the instructions for

processing or you owe other taxes, penalties, or interest. The

line 18, later.

IRS will notify you if your claimed credit changes or if the

Example — You underreported RRTA taxes. On June 21,

amount available as a credit on Form CT-1 was reduced

2013, you discover an error that results in additional tax on your

because of unpaid taxes, penalties, or interest.

2011 Form CT-1. File Form CT-1 X by February 28, 2014, and

pay the amount you owe when you file. See When Should You

Do not check the box on line 1 if you are correcting

File Form CT-1 X?, earlier. Do not attach Form CT-1 X to your

overreported amounts and the period of limitations on

2013 Form CT-1. But see the exception in the specific

credit or refund for Form CT-1 will expire within 90 days

CAUTION

instructions for line 20, Did You Reclassify Any Workers?,

of the date you file Form CT-1 X. Instead, check the box on line

below.

2. See Is There a Deadline for Filing Form CT-1 X?, earlier.

-3-

Instructions for Form CT-1 X (2012)

Instructions For Form Ct-1 X - Adjusted Employer'S Annual Railroad Retirement Tax Return Or Claim For Refund Page 4

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