Instructions For Form 945 - Annual Return Of Withheld Federal Income Tax

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Department of the Treasury

Internal Revenue Service

Instructions for Form 945

Annual Return of Withheld Federal Income Tax

Section references are to the Internal Revenue Code unless otherwise noted.

What’s New

Photographs of Missing Children

The Internal Revenue Service is a proud partner with the

Alternative signature method. Effective with returns

National Center for Missing and Exploited Children.

filed after June 30, 2005, corporate officers or duly

Photographs of missing children selected by the Center

authorized agents may sign Form 945 by rubber stamp,

may appear in instructions on pages that would otherwise

mechanical device, or computer software program. For

be blank. You can help bring these children home by

details and required documentation, see Rev. Proc.

looking at the photographs and calling 1-800-THE-LOST

2005-39. You can find Rev. Proc. 2005-39 on page 82 of

(1-800-843-5678) if you recognize a child.

Internal Revenue Bulletin 2005-28 at

irs-irbs/irb05-28.pdf.

General Instructions

Reminders

Purpose of form. Use Form 945 to report withheld

Additional information. Pub. 15 (Circular E),

federal income tax from nonpayroll payments.

Nonpayroll payments include the following:

Employer’s Tax Guide, explains the rules for withholding,

depositing, and reporting federal income tax. Pub. 15-A,

•

Pensions (including governmental section 457(b) plan

Employer’s Supplemental Tax Guide, includes

distributions), annuities, and IRA distributions

information on federal income tax withholding from

•

Military retirement

•

pensions, annuities, and Indian gaming profits. For

Gambling winnings

information on withholding from gambling winnings, see

•

Indian gaming profits

•

the Instructions for Forms W-2G and 5754.

Voluntary withholding on certain government payments

•

Backup withholding

For a list of employment tax products, visit the IRS

website at and type “Employment Tax” in the

Report all federal income tax withholding from

Keyword Search box.

nonpayroll payments or distributions annually on one

Form 945. Do not file more than one Form 945 for any

Correcting Form 945. If you discover an error on a

calendar year.

previously filed Form 945, make the correction using

Form 945 for the year in which you discovered the error

All federal income tax withholding reported on Forms

and attach Form 941c, Supporting Statement to Correct

1099 (for example, Form 1099-R or 1099-MISC) or Form

Information. For example, in October 2005, you discover

W-2G must be reported on Form 945. Do not report

that you underreported $1,000 ($5,000 reported when

federal income tax withholding from wages on Form 945.

$6,000 was actually withheld) in withheld federal income

All employment taxes and federal income tax

tax on your 2004 Form 945. Correct the error by showing

withholding reported on Form W-2, Wage and Tax

$1,000 on line 3 of your 2005 Form 945 and attaching a

Statement, must be reported on Form 941 (or Form 943

completed Form 941c. For details, see Line 3 —

for agricultural employees), Schedule H (Form 1040) for

Adjustment to correct administrative errors on page 3.

household employees, or Form CT-1 for railroad

Electronic payment. Now, more than ever before,

employees.

businesses can enjoy the benefits of paying their federal

Do not report on Form 945 federal income tax withheld

taxes electronically. Whether you rely on a tax

on distributions to participants from nonqualified pension

professional or handle your own taxes, IRS offers you

plans (including nongovernmental section 457(b) plans)

convenient programs to make paying taxes easier.

and some other deferred compensation arrangements

that are treated as wages and are reported on Form W-2.

Spend less time and worry on taxes and more time

running your business. Use Electronic Federal Tax

Report such withholding on Form 941. See Pub. 15

(Circular E) for more information.

Payment System (EFTPS) to your benefit.

Who must file. If you withhold federal income tax

For more information about EFTPS, visit

(including backup withholding) from nonpayroll payments,

or call EFTPS Customer Service at

you must file Form 945. See Purpose of form above. You

1-800-555-4477.

are not required to file Form 945 for those years in which

How to get forms and publications. You can get most

you do not have a nonpayroll tax liability. Do not report

IRS forms and publications by accessing the IRS website

on Form 945 withholding that is required to be reported

at or by calling the IRS at 1-800-TAX-FORM

on Form 1042, Annual Withholding Tax Return for U.S.

(1-800-829-3676).

Source Income of Foreign Persons.

Telephone help. You can call the IRS toll free at

Where to file. In the list on page 2, find the location of

1-800-829-4933 to order FTD coupons (Form 8109) and

your legal residence, principal place of business, office,

for answers to your questions about completing

or agency. Send your return to the Internal Revenue

Form 945, tax deposit rules, or obtaining an employer

Service at the address listed for your location. No street

identification number (EIN).

address is needed.

Cat. No. 20534D

Instructions For Form 945 - Annual Return Of Withheld Federal Income Tax - 2005

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