Next year, you may have different deposit requirements for your Form CT-1, Employer’s Annual Railroad Retirement Tax Return, based on your Form CT-1 tax from last year. CP137A shows your deposit requirements for next year.
What you need to do
- If your tax liability for last year was $50,000 or less, you are a monthly depositor next year. Monthly depositors must deposit taxes for wages paid during a month by the 15th day of the following month.
- If your tax liability for last year was over $50,000, you are a semi-weekly depositor next year. Semi-weekly depositors must deposit taxes for wages paid on Saturday, Sunday, Monday, or Tuesday by the following Friday. Taxes for wages paid on Wednesday, Thursday, or Friday are due the following Wednesday.
- Check your records to determine if they agree with the liability amount shown on CP137A. If the amount we used differs from your tax records, then you must determine and follow the appropriate deposit schedule.
- If the tax amount we used is zero, then we may have no record of receiving last year’s Form CT-1. Please file Form CT-1 as soon as possible.
Answers to common questions
How do I show my payments when I file Form CT-1?
We have a record of your payments. On Form CT-1, show the tax liabilities, not your payments.
How do I show the tax liabilities?
If you are a monthly depositor, enter the Tier 1 and Tier 2 taxes due for each month on Form CT-1, Part II. If you are a semi-weekly depositor, use Form 945-A, Annual Record of Federal Tax Liability (PDF), to enter the tax due for each date you paid your employees.
What do I do if the tax liability on the notice is incorrect?
The tax on the notice includes only the tax liability on your original Form CT-1 for last year. Don’t include amended returns. Base your deposit requirements on the original tax liability.
Do I have to pay electronically?
You must pay all deposits electronically, unless your tax liability is less than $2,500. If your tax for the year is less than $2,500, you can pay with Form CT-1(V), Payment Voucher. The payment voucher is attached to Form CT-1 (PDF).
What if my accumulated tax liability reaches $100,000?
You must deposit the next business day. You immediately become a semi-weekly depositor for the rest of the current year and the next year.
- You can authorize someone to contact the IRS on your behalf.
- See if you qualify for help from a Low Income Taxpayer Clinic.
If you can’t find what you need online, you can call the IRS at the 800, 866, or 888 number listed on the notice.