OMB No. 1545-0002

Department of the Treasury—Internal Revenue Service Form CT-2

(Rev. January 2005) Employee Representative’s Quarterly Railroad Tax Return

1 1

2

Taxable compensation paid during this quarter subject to Tier I tax 12.4% (.124)

2

$ ×

3 3

$ × 2.9% (.029)

4

$ × 12.6% (.126)

4

Taxable compensation paid during this quarter subject to Tier II tax

5 5

Credit (attach explanation in duplicate)

Total taxes for quarter (add lines 1 through 3, subtract line 4). Pay to the “United States Treasury” 

Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge

and belief, it is true, correct, and complete.

Signature  Date 

Do not detach

T

Be Sure To

Enclose

Your

Payment

With This

Return

FF

FP

I

T Employee representative’s name, address, and social security number, and name Return for Calendar Quarter

of organization represented. If incorrect, make any necessary changes. (Months and year) Original

For Privacy Act and Paperwork Reduction Act Notice, see back of Taxpayer’s Copy Cat. No. 16030S Form CT-2 (Rev. 1-2005)

Taxable compensation paid during this quarter subject to Tier I Medicare tax
Railroad retirement taxes. The Railroad Retirement Tax Act imposes

a tax on an employee representative, which is based on

compensation.

These taxes are divided into Tier I and Tier II taxes. The amount of

the compensation subject to each tax is different.

The Tier I tax rate for 2005 is 12.4%. It applies only to the first

$90,000 paid to you during 2005 for services performed as an

employee representative. The Tier I Medicare tax is 2.9%. It applies to

all compensation paid to you during 2005 for services performed as an

employee representative.

The Tier II tax rate for 2005 is 12.6%. It applies only to the first

$66,900 paid to you during 2005 for services performed as an

employee representative.

(continued on back of Duplicate)

Purpose of form. Use this form to report railroad retirement taxes

imposed on compensation received by employee representatives.

General Instructions

Section references are to the Internal Revenue Code unless otherwise

noted.

Who must file. As an employee representative, you must file Form

CT-2 for the first quarter in which you are paid taxable compensation

for services you performed as a representative. Continue filing returns

for each quarter, even if you are not paid taxable compensation. When

your taxable compensation payments stop completely, file a return

marked “Final Return.”

Where to file. Form CT-2 contains three copies. Send both the Original

and Duplicate to the Internal Revenue Service Center, Cincinnati, OH

45999-0007. Keep the Taxpayer’s Copy for your records.

When to file. Due dates for filing Form CT-2 and paying the tax each

quarter are as follows:

Quarter covered: Due by:

January, February, March May 31, 2005

April, May, June August 31, 2005

July, August, September November 30, 2005

October, November, December February 28, 2006

Penalties and interest. The law provides a penalty for late filing or

late payment unless you can show reasonable cause for the delay. If

you are late in filing a return or paying the taxes, send an explanation

with the return. Interest is charged on taxes paid late.

What’s New. The Tier II tax (line 3) has been reduced to 12.6%.
OMB No. 1545-0002

Department of the Treasury—Internal Revenue Service Form CT-2

(Rev. January 2005) Employee Representative’s Quarterly Railroad Tax Return

1 1

2

Taxable compensation paid during this quarter subject to Tier I tax 12.4% (.124)

2

$ ×

3 3

Taxable compensation paid during this quarter subject to Tier I Medicare tax $ × 2.9% (.029)

4

$ × 12.6% (.126)

4

Taxable compensation paid during this quarter subject to Tier II tax

5 5

Credit (attach explanation in duplicate)

Total taxes for quarter (add lines 1 through 3, subtract line 4). Pay to the “United States Treasury” 

Do not detach

Employee representative’s name, address, and social security number, and name of Return for Calendar Quarter

organization represented, exactly as shown on Original, including any corrections. (Months and year as on Original)

File this Duplicate copy with the Original copy.

Duplicate
1. Any officer or official representative of a railway labor organization

that is not an employer under section 3231(a) who (a) was in the

service of an employer and (b) is authorized and designated to

represent employees under the Railway Labor Act and

2. Any individual who is regularly assigned to or regularly employed

by an employee representative as defined above in connection with

the duties of the employee representative’s office.

Compensation. Compensation means payment in money, or in

something that may be used instead of money, for services performed

as an employee representative. It does not include payments for

medical or hospital expenses connected with disabilities. It also does

not include payments made specifically for traveling or other bona fide

and necessary expenses that meet the rules in the regulations under

section 62. For purposes of Tier I taxes, compensation does not

include sickness or accident disability payments received (a) under a

workers’ compensation law, (b) under section 2(a) of the Railroad

Unemployment Insurance Act for days of sickness due to an

(continued on back of Taxpayer’s Copy)

Definitions

Employee representative. An employee representative is:

Records. You must keep records relating to employee representative

taxes for at least 4 years after the taxes are due or were paid,

whichever is later.

Note. If you perform services as both an employee representative and

an employee and your total pay for these services is more than the

applicable maximum (see Line 1 and Line 3 below), then for lines 1 and

3 subtract your pay as an employee from the maximum to determine the

amount subject to the employee representative’s tax.

Compensation is considered paid when actually paid or when

constructively paid. Constructively paid means that the pay: (a) has

been credited to the employee representative’s account or set apart

with no limit or condition on how or when the payment will be made

and (b) is available to draw on at any time and to control.

Specific Instructions

Line 1. Multiply the compensation subject to Tier I tax by 12.4%

(.124). This applies only to the first $90,000 paid during 2005 for

services you performed as an employee representative.

Line 2. Multiply the compensation subject to Tier I Medicare tax by

2.9% (.029). This applies to all compensation paid to you during 2005

for services performed as an employee representative.

Line 3. Multiply the compensation subject to Tier II tax by 12.6%

(.126). This applies only to the first $66,900 paid to you during 2005

for services performed as an employee representative.

on-the-job injury, (c) under the Railroad Retirement Act, or (d) more

than 6 months after the month in which the employee representative

last worked for the railway labor organization.

General Instructions (continued from back 

of Original)
OMB No. 1545-0002

Department of the Treasury—Internal Revenue Service Form CT-2

(Rev. January 2005) Employee Representative’s Quarterly Railroad Tax Return

1 1

2

Taxable compensation paid during this quarter subject to Tier I tax 12.4% (.124)

2

$ ×

3 3

Taxable compensation paid during this quarter subject to Tier I Medicare tax $ × 2.9% (.029)

4

$ × 12.6% (.126)

4

Taxable compensation paid during this quarter subject to Tier II tax

5 5

Credit (attach explanation in duplicate)

Total taxes for quarter (add lines 1 through 3, subtract line 4). Pay to the “United States Treasury” 

Detach and keep this copy

Employee representative’s name, address, and social security number, and name of Return for Calendar Quarter

organization represented, exactly as shown on Original, including any corrections. (Months and year as on Original)

Before filing this return, examine each copy to make certain that the period for which the return is filed

is shown and that correct entries are made on lines 1 through 5, in accordance with the instructions.

Taxpayer’s

Copy
Signature. You or your authorized agent must sign the Original copy

of Form CT-2.

Line 4. Enter any credit for an overpayment of tax, penalty, or interest

erroneously paid for an earlier quarter. Attach two copies of a detailed

statement explaining the credit claimed.

Name, address, etc. Type or print your name, address, social security

number, and the name of the labor organization for which you perform

services. If the IRS has preaddressed the form, check to be sure it is

correct. If incorrect, make any necessary changes.

Return for calendar quarter. The IRS usually fills in this space. If it is

blank, enter the months of the quarter and the year of the return. For

example, show the first quarter of 2005 as “Jan., Feb., Mar. 2005.”

Privacy Act and Paperwork Reduction Act Notice. We ask for the

information on Form CT-2 to carry out the Internal Revenue laws of the

United States. We need it to figure and collect the right amount of tax.

Section 3211 and section 6011 and its regulations require employee

representatives to report and pay over to the IRS railroad retirement

taxes (Tier I and Tier II) and Tier I Medicare taxes. Form CT-2 is used

to determine the amount of such taxes that you owe. Section 6109

requires you to provide your social security number. Routine

The time needed to complete and file Form CT-2 will vary

depending on individual circumstances. The estimated average time is:

Recordkeeping, 13 min.; Learning about the law or the form, 

13 min.; Preparing the form, 24 min.; Copying, assembling, and

sending the form to the IRS, 16 min.

If you have comments concerning the accuracy of these time

estimates or suggestions for making Form CT-2 simpler, we would be

happy to hear from you. You can write to the Internal Revenue

Service, Tax Products Coordinating Committee, SE:W:CAR:MP:T:T:SP,

1111 Constitution Ave. NW, IR-6406, Washington, DC 20224. Do not

send Form CT-2 to this office. Instead, see Where to file on the back

of the Original copy.

You are not required to provide the information requested on a form

that is subject to the Paperwork Reduction Act unless the form

displays a valid OMB control number. Books or records relating to a

form or its instructions must be retained as long as their contents may

become material in the administration of any Internal Revenue law.

Generally, tax returns and return information are confidential, as

required by section 6103.

Line 5. Pay this amount to the “United States Treasury.” Enter on your

check or money order your social security number, “Form CT-2,” and

the quarter (for example, 200503 for the first quarter of 2005).

Specific Instructions (continued from back 

of Duplicate)

uses include giving this information to the Railroad Retirement Board

for use in administering the Railroad Retirement Act, to the

Department of Justice for civil and criminal litigation, and to cities,

states, and the District of Columbia for use in administering their tax

laws. We may also disclose this information to other countries under a

tax treaty, to federal and state agencies to enforce federal nontax

criminal laws, or to federal law enforcement agencies and intelligence

agencies to combat terrorism. If you fail to provide this information in

a timely manner, you may be subject to penalties and interest.