What’s New

Period of limitations to make certain corrections ex- pired; Form CT-1 X, lines 20a, 22, 23, 25a, 31, 32, 39, and 40 are now reserved for future use. Lines 20a, 22, 23, 25a, 31, 32, 39, and 40 are now reserved for future use because the period of limitations for correcting these lines has generally expired for most employers. Generally, you may correct overreported taxes on a previously filed Form CT-1 if you file Form CT-1 X within 3 years of the date Form CT-1 was filed or 2 years from the date you paid the tax reported on Form CT-1, whichever is later. You may correct underreported taxes on a previously filed Form CT-1 if you file Form CT-1 X within 3 years of the date the Form CT-1 was filed. We call each of these time frames a period of limitations. For purposes of the period of limitations, Form CT-1 for a calendar year is considered filed on the last day of February of the succeeding year if filed before that date. For an example of the period of limitations, see Is There a Deadline for Filing Form CT-1 X , later. Before using any line on Form CT-1 X, you must consider if the period of limitations, as described above, is still open for the year that you’re correcting.

Lines 22 and 23 were previously used to correct the deferred amount of the Tier 1 Employer and Tier 1 Employee tax for 2020. The period of limitations for making corrections to the deferred amount of the Tier 1 Employer and Tier 1 Employee tax generally expired for most employers on February 29, 2024. These instructions no longer discuss these deferrals. If you think that the period of limitations is still open for correcting your 2020 Form CT-1, you can still file the March 2024 revision of Form CT-1 X to use lines 22 and 23.

Lines 20a, 25a, 31, 32, 39, and 40 were used only when correcting qualified compensation paid for the

employee retention credit and qualified health plan expenses allocable to that compensation on a Form CT-1 filed for 2020 and 2021. The period of limitations for making corrections to qualified compensation paid in 2020 for the employee retention credit and qualified health plan expenses allocable to that compensation generally expired for most employers on February 29, 2024. The period of limitations for making corrections to qualified compensation paid in 2021 for the employee retention credit and qualified health plan expenses allocable to that compensation generally expired for most employers on February 28, 2025. Lines 39 and 40 were used only if your business was a recovery startup business in the third or fourth quarter of 2021. These instructions no longer discuss these lines. If you think that the period of limitations is still open for correcting your 2020 or 2021 Form CT-1, you can still file the March 2024 revision of Form CT-1 X to use lines 20a, 25a, 31, 32, 39, and 40.