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

ICR 202112-1545-012

OMB: 1545-0001

Federal Form Document

ICR Details
1545-0001 202112-1545-012
Received in OIRA 202102-1545-004
TREAS/IRS
Railroad Retirement Tax Act (Form CT-1 and CT-1X)
Revision of a currently approved collection   No
Emergency 01/13/2022
01/06/2022
  Requested Previously Approved
6 Months From Approved 07/31/2024
2,400 2,400
62,589 51,055
0 0

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.
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.

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
  
PL: Pub.L. 117 - 2 9501, 9641, and 9651 Name of Law: American Rescue Plan Act

Not associated with rulemaking

No

  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
No
No
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.

$121,606
No
    Yes
    Yes
No
No
No
No
Michael Ecker 202 622-3144

  No

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:
 
 
 
 
 
 
 
    (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;
 
 
 
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.
01/06/2022


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