Form CT-2 Employee Representative's Quarterly Railroad Tax Return

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I.R.S. SPECIFICATIONS

TO BE REMOVED BEFORE PRINTING

INSTRUCTIONS TO PRINTERS
FORM CT-2, PAGE 1 of 6
PRINTS: HEAD to HEAD
MARGINS: TOP 6 mm (1⁄4 ") CENTER SIDES.
PAPER: WHITE WRITING, SUB. 20.
INK: BLACK
FLAT SIZE: 610 mm (24")
95 mm (33⁄4 ") FOLDED to 203 mm (8")
95 mm (33⁄4 ")
PERFORATE: ON FOLDS

CT-2

(Rev. January 2006)

Signature

Revised proofs
requested

Department of the Treasury—Internal Revenue Service
OMB No. 1545-0002

Employee Representative’s Quarterly Railroad Tax Return
× 12.4% (.124)

1

×

2.9% (.029)

2

3 Taxable compensation paid during this quarter subject to Tier II tax
$
× 12.6% (.126)
4 Credit (attach explanation in duplicate)
䊳
5 Total taxes for quarter (add lines 1 through 3, subtract line 4). Pay to the “United States Treasury”

3

1 Taxable compensation paid during this quarter subject to Tier I tax

$

2 Taxable compensation paid during this quarter subject to Tier I Medicare tax $

Do not detach

Date

O.K. to print

DO NOT PRINT — DO NOT PRINT — DO NOT PRINT — DO NOT PRINT

Form

Action

4
5

Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge
and belief, it is true, correct, and complete.

Signature

䊳

Date

Be Sure To
Enclose
Your
Payment
With This
Return
Employee representative’s name, address, and social security number, and name
of organization represented. If incorrect, make any necessary changes.
For Privacy Act and Paperwork Reduction Act Notice, see back of Taxpayer’s Copy

䊳

T
FF
FP
I
Return for Calendar Quarter
(Months and year)
Cat. No. 16030S

T
Original
Form

CT-2

(Rev. 1-2006)

1
I.R.S. SPECIFICATIONS

TO BE REMOVED BEFORE PRINTING

INSTRUCTIONS TO PRINTERS
FORM CT-2, PAGE 2 of 6
PRINTS: HEAD to HEAD
MARGINS: TOP 6 mm (1⁄4 "), CENTER SIDES.
PAPER: WHITE WRITING, SUB. 20.
INK: BLACK
3
FLAT SIZE: 610 mm (24")
95 mm (3 ⁄4 ") FOLDED to 203 mm (8")
95 mm (33⁄4 ")
PERFORATE: ON FOLDS

DO NOT PRINT — DO NOT PRINT — DO NOT PRINT — DO NOT PRINT

General Instructions
Section references are to the Internal Revenue Code unless otherwise
noted.
What’s new. The Tier I tax rate remains unchanged at 12.4% but the
payment base for 2006 increased to $94,200. The Tier I Medicare tax
rate remains unchanged at 2.9% with an unlimited wage base. The
Tier II tax rate on employee representatives remains unchanged at
12.6% but the payment base for 2006 increased to $69,900.
Purpose of form. Use this form to report railroad retirement taxes
imposed on compensation received by employee representatives.
Railroad retirement taxes. The Railroad Retirement Tax Act imposes
a tax on an employee representative, which is based on
compensation.
These taxes are divided into Tier I and Tier II taxes. The amount of
compensation subject to each tax is different.
The Tier I tax rate for 2006 is 12.4%. It applies only to the first
$94,200 paid to you during 2006 for services performed as an
employee representative. The Tier I Medicare tax is 2.9%. It applies to
all compensation paid to you during 2006 for services performed as an
employee representative.
The Tier II tax rate for 2006 is 12.6%. It applies only to the first
$69,900 paid to you during 2006 for services performed as an
employee representative.

Who must file. As an employee representative, you must file Form
CT-2 for the first quarter in which you are paid taxable compensation
for services you performed as a representative. Continue filing returns
for each quarter, even if you are not paid taxable compensation. When
your taxable compensation payments stop completely, file a return
marked “Final Return.”
When to file. Due dates for filing Form CT-2 and paying the tax each
quarter are as follows:
Quarter covered:

Due by:

January, February, March
April, May, June
July, August, September
October, November, December

May 31, 2006
August 31, 2006
November 30, 2006
February 28, 2007

Where to file. Form CT-2 contains three copies. Send both the Original
and Duplicate to the Internal Revenue Service Center, Cincinnati, OH
45999-0007. Keep the Taxpayer’s Copy for your records.
Penalties and interest. The law provides a penalty for late filing or
late payment unless you can show reasonable cause for the delay. If
you are late in filing a return or paying the taxes, send an explanation
with the return. Interest is charged on taxes paid late.

(continued on back of Duplicate)

1
I.R.S. SPECIFICATIONS

TO BE REMOVED BEFORE PRINTING

INSTRUCTIONS TO PRINTERS
FORM CT-2, PAGE 3 of 6
PRINTS: HEAD to HEAD
MARGINS: TOP 6 mm (1⁄4 ") CENTER SIDES.
PAPER: WHITE WRITING, SUB. 20.
INK: BLACK
FLAT SIZE: 610 mm (24")
95 mm (33⁄4 ") FOLDED to 203 mm (8")
95 mm (33⁄4 ")
PERFORATE: ON FOLDS

DO NOT PRINT — DO NOT PRINT — DO NOT PRINT — DO NOT PRINT

Form

CT-2

(Rev. January 2006)

Department of the Treasury—Internal Revenue Service

× 12.4% (.124)

1

×

2.9% (.029)

2

3 Taxable compensation paid during this quarter subject to Tier II tax
$
× 12.6% (.126)
4 Credit (attach explanation in duplicate)
䊳
5 Total taxes for quarter (add lines 1 through 3, subtract line 4). Pay to the “United States Treasury”

3

1 Taxable compensation paid during this quarter subject to Tier I tax

$

2 Taxable compensation paid during this quarter subject to Tier I Medicare tax $

Do not detach

OMB No. 1545-0002

Employee Representative’s Quarterly Railroad Tax Return

4
5

File this Duplicate copy with the Original copy.

Employee representative’s name, address, and social security number, and name of
organization represented, exactly as shown on Original, including any corrections.

Return for Calendar Quarter
(Months and year as on Original)

Duplicate

1
I.R.S. SPECIFICATIONS

TO BE REMOVED BEFORE PRINTING

INSTRUCTIONS TO PRINTERS
FORM CT-2, PAGE 4 of 6
PRINTS: HEAD to HEAD
MARGINS: TOP 6 mm (1⁄4 ") CENTER SIDES.
PAPER: WHITE WRITING, SUB. 20.
INK: BLACK
3
FLAT SIZE: 610 mm (24")
95 mm (3 ⁄4 ") FOLDED to 203 mm (8")
95 mm (33⁄4 ")
PERFORATE: ON FOLDS

DO NOT PRINT — DO NOT PRINT — DO NOT PRINT — DO NOT PRINT

General Instructions (continued from back
of Original)
Records. You must keep records relating to employee representative
taxes for at least 4 years after the taxes are due or were paid, whichever
is later.

Definitions
Employee representative. An employee representative is:
1. Any officer or official representative of a railway labor organization
that is not an employer under section 3231(a) who (a) was in the service
of an employer and (b) is authorized and designated to represent
employees under the Railway Labor Act and
2. Any individual who is regularly assigned to or regularly employed
by an employee representative as defined above in connection with the
duties of the employee representative’s office.
Compensation. Compensation means payment in money, or in
something that may be used instead of money, for services performed
as an employee representative. It does not include payments for
medical or hospital expenses connected with disabilities. It also does
not include payments made specifically for traveling or other bona fide
and necessary expenses that meet the rules in the regulations under
section 62. For purposes of Tier I taxes, compensation does not include
sickness or accident disability payments received (a) under a workers’
compensation law, (b) under section 2(a) of the Railroad Unemployment
Insurance Act for days of sickness due to an on-the-job injury, (c) under

the Railroad Retirement Act, or (d) more than 6 months after the
month in which the employee representative last worked for the
railway labor organization.
Compensation is considered paid when actually paid or when
constructively paid. Constructively paid means that the pay: (a) has
been credited to the employee representative’s account or set apart
with no limit or condition on how or when the payment will be made
and (b) is available to draw on at any time and to control.

Specific Instructions
Note. If you perform services as both an employee representative and an
employee and your total pay for these services is more than the
applicable maximum (see Line 1 and Line 3 below), then for lines 1 and 3
subtract your pay as an employee from the maximum to determine the
amount subject to the employee representative’s tax.
Line 1. Multiply the compensation subject to Tier I tax by 12.4% (.124).
This applies only to the first $94,200 paid during 2006 for services you
performed as an employee representative.
Line 2. Multiply the compensation subject to Tier I Medicare tax by
2.9% (.029). This applies to all compensation paid to you during 2006
for services performed as an employee representative.
Line 3. Multiply the compensation subject to Tier II tax by 12.6% (.126).
This applies only to the first $69,900 paid to you during 2006 for
services performed as an employee representative.
(continued on back of Taxpayer’s Copy)

1
I.R.S. SPECIFICATIONS

TO BE REMOVED BEFORE PRINTING

INSTRUCTIONS TO PRINTERS
FORM CT-2, PAGE 5 of 6
PRINTS: HEAD to HEAD
MARGINS: TOP 6 mm (1⁄4 ") CENTER SIDES.
PAPER: WHITE WRITING, SUB. 20.
INK: BLACK
FLAT SIZE: 610 mm (24")
95 mm (33⁄4 ") FOLDED to 203 mm (8")
95 mm (33⁄4 ")
PERFORATE: ON FOLDS

DO NOT PRINT — DO NOT PRINT — DO NOT PRINT — DO NOT PRINT

Form

CT-2

Department of the Treasury—Internal Revenue Service

(Rev. January 2006)

× 12.4% (.124)

1

×

2.9% (.029)

2

3 Taxable compensation paid during this quarter subject to Tier II tax
$
×
4 Credit (attach explanation in duplicate)
5 Total taxes for quarter (add lines 1 through 3, subtract line 4). Pay to the “United States Treasury”

12.6% (.126)

3

1 Taxable compensation paid during this quarter subject to Tier I tax

$

2 Taxable compensation paid during this quarter subject to Tier I Medicare tax $

Detach and keep this copy

OMB No. 1545-0002

Employee Representative’s Quarterly Railroad Tax Return

4
䊳

5

Before filing this return, examine each copy to make certain that the period for which the return is filed
is shown and that correct entries are made on lines 1 through 5, in accordance with the instructions.

Employee representative’s name, address, and social security number, and name of
organization represented, exactly as shown on Original, including any corrections.

Return for Calendar Quarter
(Months and year as on Original)

Taxpayer’s
Copy

1
I.R.S. SPECIFICATIONS

TO BE REMOVED BEFORE PRINTING

INSTRUCTIONS TO PRINTERS
FORM CT-2, PAGE 6 of 6
PRINTS: HEAD to HEAD
MARGINS: TOP 6 mm (1⁄4 ") CENTER SIDES.
PAPER: WHITE WRITING, SUB. 20.
INK: BLACK
FLAT SIZE: 610 mm (24")
95 mm (33⁄4 ") FOLDED to 203 mm (8")
95 mm (33⁄4 ")
PERFORATE: ON FOLDS

DO NOT PRINT — DO NOT PRINT — DO NOT PRINT — DO NOT PRINT

Specific Instructions (continued from back
of Duplicate)
Line 4. Enter any credit for an overpayment of tax, penalty, or interest
erroneously paid for an earlier quarter. Attach two copies of a detailed
statement explaining the credit claimed.
Line 5. Pay this amount to the “United States Treasury.” Enter on your
check or money order your social security number, “Form CT-2,” and
the quarter (for example, 200603 for the first quarter of 2006).
Signature. You or your authorized agent must sign the Original copy of
Form CT-2.
Name, address, etc. Type or print your name, address, social security
number, and the name of the labor organization for which you perform
services. If the IRS has preaddressed the form, check to be sure it is
correct. If incorrect, make any necessary changes.
Return for calendar quarter. The IRS usually fills in this space. If it is
blank, enter the months of the quarter and the year of the return. For
example, show the first quarter of 2006 as “Jan., Feb., Mar. 2006.”
Privacy Act and Paperwork Reduction Act Notice. We ask for the
information on Form CT-2 to carry out the Internal Revenue laws of the
United States. We need it to figure and collect the right amount of tax.
Section 3211 and section 6011 and its regulations require employee
representatives to report and pay over to the IRS railroad retirement
taxes (Tier I and Tier II) and Tier I Medicare taxes. Form CT-2 is used to
determine the amount of such taxes that you owe. Section 6109
requires you to provide your social security number. Routine

uses include giving this information to the Railroad Retirement Board for
use in administering the Railroad Retirement Act, to the Department of
Justice for civil and criminal litigation, and to cities, states, and the
District of Columbia for use in administering their tax laws. We may also
disclose this information to other countries under a tax treaty, to federal
and state agencies to enforce federal nontax criminal laws, or to federal
law enforcement agencies and intelligence agencies to combat
terrorism. If you fail to provide this information in a timely manner, you
may be subject to penalties and interest.
You are not required to provide the information requested on a form
that is subject to the Paperwork Reduction Act unless the form displays
a valid OMB control number. Books or records relating to a form or its
instructions must be retained as long as their contents may become
material in the administration of any Internal Revenue law. Generally, tax
returns and return information are confidential, as required by section
6103.
The time needed to complete and file Form CT-2 will vary depending on
individual circumstances. The estimated average time is:
Recordkeeping, 13 min.; Learning about the law or the form,
13 min.; Preparing the form, 24 min.; Copying, assembling, and
sending the form to the IRS, 16 min.
If you have comments concerning the accuracy of these time
estimates or suggestions for making Form CT-2 simpler, we would be
happy to hear from you. You can write to the Internal Revenue Service,
Tax Products Coordinating Committee, SE:W:CAR:MP:T:T:SP, 1111
Constitution Ave. NW, IR-6406, Washington, DC 20224. Do not send
Form CT-2 to this office. Instead, see Where to file on the back of the
Original copy.