Who must file

Each system unit and local lodge unit must file an annual tax return, Form CT-1 , Employer's Annual Railroad Retirement Tax Return, with the Internal Revenue Service (IRS). The grand lodge may choose to file one Form CT-1 with the IRS for all units.

Where to file

All Forms CT-1 are filed at:

Internal Revenue Service Center
Cincinnati, OH. 45999-0007

Due date

Form CT-1 for a calendar year is due at the IRS by the last day of February of the following year.

IRS/RRB Jurisdiction Coordination

The IRS and the RRB have coordination procedures for their respective functions in connection with railroad retirement. A copy of each employer’s completed Form CT-1 is sent to the RRB for tax reconciliation with that employer’s reported creditable compensation for the year.

Form CT-1 is also used to report the amount of Medicare tax paid, but there is no corresponding employee earnings report which must be filed with the RRB for payment of the Medicare tax.

Representatives from the RRB have no authority to give definitive answers to railroad retirement tax questions. Although the Quality Reporting Service Center reporting specialist may help you with some railroad retirement tax or Form CT-1 questions, it may be necessary for them to refer you to an IRS railroad retirement tax specialist.

Obtaining Form CT-1

Form CT-1 is an IRS form, not a RRB form. The IRS releases Form CT-1, and its separate instructions , to employers in December. Form CT-1 is also available on the IRS Internet site at www.irs.gov . If you do not receive a Form CT-1 by December 31, contact the IRS. If you are still unable to obtain Form CT-1, contact QRSC:

Quality Reporting Service Center
Railroad Retirement Board
844 North Rush Street
Chicago, Illinois 60611-2092

Tax rates and compensation bases

The RRB notifies employers by December each year of the tax rates and compensation bases applicable for the following year. This information is also available here.

How to make tax deposits

Railroad retirement taxes are deposited with an authorized financial institution or a Federal Reserve bank or branch, either electronically or by using Form 8109. Taxes may not be paid to the IRS directly nor to the RRB.

All employers are encouraged to make electronic deposits. Depending on your tax liability in the previous year, you may be required to make your tax deposits electronically. See Form CT-1 for deposit requirements. Electronic deposits are made using the www.EFTPS.Gov system. Contact:

Quality Reporting Service Center
Railroad Retirement Board
844 North Rush Street
Chicago, Illinois 60611-2092

CT-2, Employee Representative's Quarterly Railroad Retirement Tax Return

Do not use Form CT-2, Employee Representative's Quarterly Railroad Retirement Tax Return, to make deposits. Only Employee Representatives use Form CT-2. An “employee representative” within the meaning of the Railroad Retirement Act does not refer to an employee of a national rail labor organization employer.

When to make tax deposits

In general, your total RRTA tax liability in the previous year determines the frequency of your tax deposits. Each November, the IRS will notify employers of their deposit frequency for the coming calendar year. If you do not receive a notification, you must determine your own deposit status. See the deposit rules in the Form CT-1 instructions.

Medicare tax

Form CT-1 is also used to report the amount of SSA Medicare tax paid. There is no corresponding employee earnings report that must be filed with the RRB for payment of the Medicare tax.

Penalties and interest

The law provides penalties for failure to file and late filing of a Form CT-1 and failure to pay taxes or late payment or deposit of taxes. Interest is also charged on taxes deposited late at the rate set by law. If you are unavoidably late in filing or paying taxes, send an explanation with Form CT-1. If taxes, which must be withheld, are not withheld and paid, you may be subject to a penalty of 100% of the unpaid taxes.

RRB/IRS coordination

The IRS and the RRB have coordination procedures for their respective functions concerning railroad retirement. Form CT-1 information is sent to the RRB for tax reconciliation with that employer's reported creditable compensation for the year. 

Representatives from the RRB have no authority to give definitive answers to railroad retirement tax questions. Questions about railroad retirement taxes or completion of Form CT-1 may be directed to:

Quality Reporting Service Center
Railroad Retirement Board
844 North Rush Street
Chicago, Illinois 60611-2092

However, it may be necessary for them to refer you to an IRS railroad retirement tax specialist for the answers to some questions about railroad retirement taxes.