Railroad Retirement Tax Act (Form CT-1 and CT-1X)

Forms and Documents

Document Name	Status
Form Form CT-1X Adjusted Employer's Annual Railroad Retirement Tax Return or Claim for Refund Form	Modified
Form Form CT-1 Employer's Annual Railroad Retirement Tax Return Form	Modified
Supporting Statement 1545-0001.docx Supporting Statement A	2021-04-26

IC Document Collections

IC ID	Document Title	Status
187434	Adjusted Employer's Annual Railroad Retirement Tax Return or Claim for Refund Form	Modified
16710	Employer's Annual Railroad Retirement Tax Return Form	Modified

ICR Details

OMB Control No: 1545-0001	ICR Reference No: 202102-1545-004
Status: Received in OIRA	Previous ICR Reference No: 201710-1545-020
Agency/Subagency: TREAS/IRS	Agency Tracking No:
Title: Railroad Retirement Tax Act (Form CT-1 and CT-1X)
Type of Information Collection: Revision of a currently approved collection	Common Form ICR:  No
Type of Review Request: Regular	Date Submitted to OIRA: 04/29/2021

	Requested	Previously Approved
Expiration Date	36 Months From Approved	04/30/2021
Responses	2,400	2,400
Time Burden (Hours)	51,055	39,455
Cost Burden (Dollars)	0	0

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Abstract: Section 3201 of the Internal Revenue Code imposes a tax on railroad employees' earnings at a rate equal to the social security tax rate, as well as a tax on income commonly known as Tier II tax. Section 3221 imposes the equivalent of employer FICA tax and a Tier II tax, on the employer. Use Form CT-1 to report taxes imposed by the Railroad Retirement Tax Act (RRTA). Section 31.6011(a)-2(a)(1) of the employment tax regulations requires the employer to file Form CT-1 annually. Form CT-1X is used to correct errors on a previously filed Form CT-1. Use Form CT-1X to correct: • Tier 1 Employee tax, Tier 1 Employee Medicare tax, Tier 1 Employee Additional Medicare Tax, and Tier 2 Employee tax; and • Tier 1 Employer tax, Tier 1 Employer Medicare tax, and Tier 2 Employer tax.

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Authorizing Statute(s): US Code: 26 USC 3201 Name of Law: Rate of tax (employee)
   US Code: 26 USC 3221 Name of Law: Rate of tax (employer)
  

Citations for New Statutory Requirements: PL: Pub.L. 116 - 127 7001 Name of Law: Families First Coronavirus Response Act
PL: Pub.L. 116 - 136 2301 Name of Law: Coronavirus Aid, Relief, and Economic Security Act

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Associated Rulemaking Information
RIN:	Stage of Rulemaking:	Federal Register Citation:	Date:
	Not associated with rulemaking

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Federal Register Notices & Comments
60-day Notice:	Federal Register Citation:	Citation Date:
	85 FR 77341	12/01/2020
30-day Notice:	Federal Register Citation:	Citation Date:
	86 FR 22784	04/29/2021
Did the Agency receive public comments on this ICR? No

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Number of Information Collection (IC) in this ICR: 2

IC Title	Form No.	Form Name
Adjusted Employer's Annual Railroad Retirement Tax Return or Claim for Refund	Form CT-1X	Adjusted Employer's Annual Railroad Retirement Tax Return or Claim for Refund
Employer's Annual Railroad Retirement Tax Return	Form CT-1	Employer's Annual Railroad Retirement Tax Return

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ICR Summary of Burden

	Total Request	Previously Approved	Change Due to New Statute	Change Due to Agency Discretion	Change Due to Adjustment in Estimate	Change Due to Potential Violation of the PRA
Annual Number of Responses	2,400	2,400	0	0	0	0
Annual Time Burden (Hours)	51,055	39,455	11,600	0	0	0
Annual Cost Burden (Dollars)	0	0	0	0	0	0

Burden increases because of Program Change due to Agency Discretion: No

Burden Increase Due to:

Burden decreases because of Program Change due to Agency Discretion: No

Burden Reduction Due to:

Short Statement: IRS has significantly revised the 2020 Form CT-1 and CT-1X to allow for the reporting of new employment tax credits and the deferral of deposit and payment of certain taxes from the following provisions. • P.L. 116-127: Section 7001, Payroll credit for required paid sick leave; Section 7003, Payroll credit for required family leave; and Section 7005, Wages paid by reason of the Emergency Paid Sick Leave Act and the Emergency Family and Medical Leave Expansion Act not considered compensation under section 3221(a) • P.L. 116-136: Section 2301 Employee Retention Credit; and Section 2302, Delay of payment for employer payroll taxes. The changes to Form CT-1 will result in an estimated burden increase of 5,985 hours. Changes to Form CT-1X will result in an estimated burden increase of 5,615 hours. IRS is making this submission to renew the OMB approval.

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Annual Cost to Federal Government: $75,729

Does this IC contain surveys, censuses, or employ statistical methods? No

Does this ICR request any personally identifiable information (see OMB Circular No. A-130 for an explanation of this term)? Please consult with your agency's privacy program when making this determination.     Yes

Does this ICR include a form that requires a Privacy Act Statement (see 5 U.S.C. §552a(e)(3))? Please consult with your agency's privacy program when making this determination.     Yes

Is this ICR related to the Affordable Care Act [Pub. L. 111-148 & 111-152]? No

Is this ICR related to the Dodd-Frank Wall Street Reform and Consumer Protection Act, [Pub. L. 111-203]? No

Is this ICR related to the American Recovery and Reinvestment Act of 2009 (ARRA)? No

Is this ICR related to the Pandemic Response? No

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Common Form ICR:  No

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On behalf of this Federal agency, I certify that the collection of information encompassed by this request complies with 5 CFR 1320.9 and the related provisions of 5 CFR 1320.8(b)(3).

The following is a summary of the topics, regarding the proposed collection of information, that the certification covers:

(a) It is necessary for the proper performance of agency functions;

(b) It avoids unnecessary duplication;

(c) It reduces burden on small entities;

(d) It uses plain, coherent, and unambiguous language that is understandable to respondents;

(e) Its implementation will be consistent and compatible with current reporting and recordkeeping practices;

(f) It indicates the retention periods for recordkeeping requirements;

(g) It informs respondents of the information called for under 5 CFR 1320.8 (b)(3) about:

(i) Why the information is being collected;

(ii) Use of information;

(iii) Burden estimate;

(iv) Nature of response (voluntary, required for a benefit, or mandatory);

(v) Nature and extent of confidentiality; and

(vi) Need to display currently valid OMB control number;

(h) It was developed by an office that has planned and allocated resources for the efficient and effective management and use of the information to be collected.

(i) It uses effective and efficient statistical survey methodology (if applicable); and

(j) It makes appropriate use of information technology.

If you are unable to certify compliance with any of these provisions, identify the item by leaving the box unchecked and explain the reason in the Supporting Statement.

Certification Date: 04/29/2021

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