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 CT-1 Employer's Annual Railroad Retirement Tax Return Form	Modified
Emergency Justification Memo (Forms CT-1 and CT-1X)_signed.pdf Supplementary Document	2022-01-06
Supporting Statement 1545-0001.docx Supporting Statement A	2021-12-28

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: 202112-1545-012
Status: Received in OIRA	Previous ICR Reference No: 202102-1545-004
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: Emergency	Approval Requested By: 01/13/2022
Date Submitted to OIRA: 01/06/2022

	Requested	Previously Approved
Expiration Date	6 Months From Approved	07/31/2024
Responses	2,400	2,400
Time Burden (Hours)	62,589	51,055
Cost Burden (Dollars)	0	0

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Abstract: Internal Revenue Code (IRC) Section 3201 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. IRC Section 3221 imposes the equivalent of employer Federal Insurance Contribution Act (FICA) tax and a Tier II tax on the employer. Form CT-1 is used to report taxes imposed by the Railroad Retirement Tax Act (RRTA) and claim eligible employer tax credits. Treasury Regulations section 31.6011(a)-2(a)(1) requires the employer to file Form CT-1 annually. Form CT-1X is used to correct errors on a previously filed Form CT-1.

Emergency Justfication: The Department of the Treasury and the Internal Revenue Service (IRS) are requesting approval of a revision to OMB Control Number 1545-0001 under emergency procedures in connection with provisions of Public Law 117-2, Sections 9501, 9641, and 9651 (March 11, 2021), commonly referred to as the American Rescue Plan Act of 2021 (ARP). Section 9501 of the ARP provides a new credit for COBRA premium assistance in the form of a full reduction in the premium otherwise payable by certain individuals and their families who elect COBRA continuation coverage due to a loss of coverage as the result of a reduction in hours or an involuntary termination of employment. Section 9641 of the ARP amends and extends credits for qualified sick and family leave compensation. Section 9651 of the ARP amends and extends the COVID-19 related employee retention credit. Form CT-1, Employer’s Annual Railroad Retirement Tax Return, is used to report taxes imposed by the Railroad Retirement Tax Act (RRTA) and claim eligible employer tax credits. Form CT-1X, Adjusted Employer’s Annual Railroad Retirement Tax Return or Claim for Refund, is used to correct errors on a previously filed Form CT-1. The IRS substantially revised both forms for tax year 2021 to allow the reporting of the credits provided by the ARP. Until the IRS releases the revised Forms CT-1 and CT-1X, taxpayers will not have the ability to claim the correct tax relief provided by the ARP. The IRS plans to release Form CT-1 by January 13, 2021, and thus requests approval of the control number by that date. Given the inability to seek public comment during such a short timeframe, the IRS respectfully requests a waiver from the requirement to publish notice in the Federal Register seeking public comment during the period of Office of Management and Budget review. However, public comment will be solicited in conjunction with the subsequent extension of the approval to collect this information.

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Authorizing Statute(s): US Code: 26 USC 3132 Name of Law: Payroll Credit For Paid Family Leave
   US Code: 26 USC 3133 Name of Law: Special Rule Related To Tax On Employers
   US Code: 26 USC 3134 Name of Law: Employee Retention Credit For Employers Subject To Closure Due To Covid-19
   US Code: 26 USC 6432 Name of Law: Continuation Coverage Premium Assistance
   US Code: 26 USC 3201 Name of Law: Rate of tax (employee)
   US Code: 26 USC 3221 Name of Law: Rate of tax (employer)
   US Code: 26 USC 3131 Name of Law: Credit For Paid Sick Leave
  

Citations for New Statutory Requirements: PL: Pub.L. 117 - 2 9501, 9641, and 9651 Name of Law: American Rescue Plan 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

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	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)	62,589	51,055	11,534	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: The IRS has significantly revised the 2021 Forms CT-1 and CT-1X to allow for the reporting of new and extended employment tax credits allowed by the American Rescue Plan Act of 2021, P.L. 117-2, sections 9501, 9641, and 9651. The changes to Form CT-1 will result in an estimated burden increase of 6,004 hours. Changes to Form CT-1X will result in an estimated burden increase of 5,530 hours. This increases the total estimated burden by 11,534 hours due to New Statute.

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Annual Cost to Federal Government: $121,606

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: 01/06/2022

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