What This Notice Means

The IRS changed your railroad retirement tax return (Form CT-1, Employer's Annual Railroad Retirement Tax Return) because it believes there was a miscalculation. After the change, your balance due is less than $1.

You don't have to pay a balance of less than $1. Don't send a payment for it.

What to Do

  • Read the notice carefully. It shows what the IRS changed.
  • Compare the figures on the notice with the railroad retirement tax return you filed.
  • If you agree, correct the copy of the return you kept for your records.
  • If you disagree, contact the IRS within 30 days of the date of the notice.

If You Disagree

Call the telephone number on your notice or write to the IRS within 30 days of the notice date. The IRS may be able to reverse the changes. If you write, include a copy of the notice and anything that shows why your original figures were right. Keep copies of everything you send. If you mail a response, use certified mail so you can prove when it was sent.

To find out exactly what caused the change, call the number on your notice. The representative can walk through the specific adjustment to your return.

Why It Still Matters

The dollar amount here is tiny. The correction itself may not be. A miscalculation on this year's return can repeat next year if the same method or worksheet error carries forward. Find out what went wrong so it doesn't happen again on a return where the numbers are bigger.

Next Year

Review your return for accuracy before you file it. Publication 15 (Circular E), Employer's Tax Guide, is one of the references the IRS points to for this notice.

If you received a CP123 notice and want a second set of eyes on your railroad retirement filings, call us at (813) 229-7100.