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

2 0 07

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

appear in instructions on pages that would otherwise be

otherwise noted.

blank. You can help bring these children home by looking at

the photographs and calling 1-800-THE-LOST

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

Reminders

General Instructions

Additional information. Pub. 15 (Circular E), Employer’s

Tax Guide, explains the rules for withholding, depositing,

Purpose of form. Use Form 945 to report withheld federal

and reporting federal income tax. Pub. 15-A, Employer’s

income tax from nonpayroll payments. Nonpayroll

payments include:

Supplemental Tax Guide, includes information on federal

income tax withholding from pensions, annuities, and Indian

•

Pensions (including governmental section 457(b) plan

gaming profits. For information on withholding from

distributions), annuities, and IRA distributions;

gambling winnings, see the Instructions for Forms W-2G

•

and 5754.

Military retirement;

•

Gambling winnings;

For a list of employment tax products, visit the IRS

•

Indian gaming profits;

website at and select “Employment

•

Voluntary withholding on certain government

Taxes” under the Business Topics heading.

payments; and

•

Correcting Form 945. If you discover an error on a

Backup withholding.

previously filed Form 945, make the correction using

Form 945 for the year in which you discovered the error and

Report all federal income tax withholding from nonpayroll

attach Form 941c, Supporting Statement to Correct

payments or distributions annually on one Form 945. Do not

Information. For example, in October 2007, you discover

file more than one Form 945 for any calendar year.

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

All federal income tax withholding reported on

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

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

on your 2006 Form 945. Correct the error by showing

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

$1,000 on line 3 of your 2007 Form 945 and attaching a

federal income tax withholding from wages on Form 945.

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

to correct administrative errors on page 3.

All employment taxes and federal income tax withholding

Electronic payment. Now, more than ever before,

reported on Form W-2, Wage and Tax Statement, must be

businesses can enjoy the benefits of paying their federal

reported on Form 941 or Form 944 (Form 943 for

taxes electronically. Whether you rely on a tax professional

agricultural employees), Schedule H (Form 1040) for

or handle your own taxes, IRS offers you convenient

household employees, or Form CT-1 for railroad employees.

programs to make paying taxes easier. Spend less time and

Do not report on Form 945 federal income tax withheld

worry on taxes and more time running your business. Use

on distributions to participants from nonqualified pension

Electronic Federal Tax Payment System (EFTPS) to your

plans (including nongovernmental section 457(b) plans)

benefit.

and some other deferred compensation arrangements that

For more information about EFTPS, visit

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

or call EFTPS Customer Service at 1-800-555-4477.

such withholding on Form 941 or Form 944. See Pub. 15

(Circular E) for more information.

You may be required to use EFTPS. See Electronic

deposit requirement on page 3.

Who must file. If you withhold federal income tax

(including backup withholding) from nonpayroll payments,

How to get forms and publications. You can get most

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

IRS forms and publications by accessing the IRS website at

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

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

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

(1-800-829-3676).

Form 945 withholding that is required to be reported on

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

Telephone help. You can call the IRS Business and

Income of Foreign Persons.

Specialty Tax Line toll free at 1-800-829-4933 to order FTD

coupons (Form 8109) and for answers to your questions

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

about completing Form 945, tax deposit rules, or obtaining

legal residence, principal place of business, office, or

an employer identification number (EIN).

agency. Send Form 945 to the address listed for your

location.

Photographs of Missing Children

Where you file depends on whether or not you are

The Internal Revenue Service is a proud partner with the

TIP

including a payment with the return.

National Center for Missing and Exploited Children.

Photographs of missing children selected by the Center may

Cat. No. 20534D

Instructions For Form 945 - Annual Return Of Withheld Federal Income Tax - 2007

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