New form.   The Internal Revenue Service (IRS) has developed Form CT-1 X, Adjusted Employer's Annual Railroad Retirement Tax Return or Claim for Refund, to correct previously filed Forms CT-1. Do not attach Form CT-1 X to Form CT-1; file Form CT-1 X separately.

  Form CT-1 X will replace Form 843, Claim for Refund or Request for Abatement, for employers to request a refund or abatement of overreported Railroad Retirement Tax Act (RRTA) taxes. Continue to use Form 843 when requesting a refund or abatement of assessed interest or penalties.

  Form CT-1 X will enable the IRS to make corrections to RRTA taxes more accurately and efficiently. Please read both the form and these instructions carefully to become familiar with the many changes.

Background.   Treasury Decision 9405 changed the process for making interest-free adjustments to RRTA taxes reported on Form CT-1, Employer's Annual Railroad Retirement Tax Return, and for filing a claim for refund of RRTA taxes. Treasury Decision 9405, 2008-32 I.R.B. 293, is available at
www.irs.gov/irb/2008-32_irb/ar13.html. You will use the revised adjustment process if you underreported RRTA taxes and are making a payment, or if you overreported RRTA taxes and will be applying the credit to the Form CT-1 year during which you file Form CT-1 X. (However, see the CAUTION on page 2.) You will use the revised claim process if you overreported RRTA taxes and are requesting a refund or abatement of the overreported amount.

  We use the terms “correct” and “corrections” on Form
CT-1 X and in these instructions to include interest-free adjustments under sections 6205 and 6413 and claims for refund and abatement under sections 6402 and 6404.

  If you have comments or suggestions for improving Form CT-1 X or these instructions, we would be happy to hear from you. Write to the address shown in the Paperwork Reduction Act Notice on Form CT-1.

New process for correcting RRTA taxes.   After December 31, 2008, when you discover an error on a previously filed Form CT-1, you must:

  Beginning in 2009, you will no longer be able to correct prior year errors using line 12 on Form CT-1. However, continue using line 12 on Form CT-1 to report current year adjustments for fractions of cents, sick pay, and credits for overpayments of penalty or interest paid on tax for earlier years.

  Report the correction of underreported and overreported amounts for the same year on a single Form CT-1 X, unless you are requesting a refund or abatement. If you are requesting a refund or abatement and are correcting both underreported and overreported amounts, file one Form CT-1 X correcting the underreported amounts only and a second Form CT-1 X correcting the overreported amounts.

  Follow the chart on the back of Form CT-1 X for help in choosing whether to use the adjustment process or the claim process.