In accordance with Notice 2020-22, railroad employers may reduce deposits of employment taxes otherwise required to be made that are reported on Form 941 (generally, income tax withholding) in anticipation of claiming credits for qualified sick and family leave compensation under sections 7001 and 7003 of the Families First Coronavirus Response Act (FFCRA) and the employee retention credit against RRTA tax under section 2301 of the CARES Act for qualified compensation paid between March 13, 2020, and December 31, 2020. Because these credits are reported when the 2020 Form CT-1 is filed in 2021, a reduction in deposits of income tax withholding as described above may have resulted in the issuance of a balance due notice and the imposition of penalties and interest when the Form 941 quarterly was return was processed. If you reduced your deposits of employment taxes reported on Form 941 in anticipation of the credits for qualified sick and family leave compensation or the employee retention credit for quarters in 2020, and this resulted in those amounts being included as a balance due in a notice, please contact us as soon as possible by either (1) writing to the address shown on your notice or (2) calling the telephone number shown on your notice. If you contact us in writing, please include a copy of your notice and the amount of employment tax deposits reported on Form 941 you reduced in anticipation of the credits for qualified sick and family leave compensation or the employee retention credit. Whether you owe tax, penalties and interest will depend upon the credits properly claimed on Form CT-1.