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

2010

Department of the Treasury

Internal Revenue Service

Instructions for Form 945

Annual Return of Withheld Federal Income Tax

Credit or debit card payments. Payers can pay the

Section references are to the Internal Revenue Code unless

balance due shown on Form 945 by credit or debit card. Do

otherwise noted.

not use a credit or debit card to make federal tax deposits.

For more information on paying your taxes with a credit or

debit card, visit the IRS website at

What’s New

Photographs of Missing Children

Electronic deposit requirement. The IRS has issued

The Internal Revenue Service is a proud partner with the

proposed regulations under section 6302 which provide that

National Center for Missing and Exploited Children.

beginning January 1, 2011, you must deposit all depository

Photographs of missing children selected by the Center may

taxes (such as employment tax, excise tax, and corporate

appear in instructions on pages that would otherwise be

income tax) electronically using the Electronic Federal Tax

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

Payment System (EFTPS). Under these proposed

the photographs and calling 1-800-THE-LOST

regulations, which are expected to be finalized by December

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

31, 2010, Forms 8109 and 8109-B, Federal Tax Deposit

Coupon, cannot be used after December 31, 2010. For

General Instructions

more information about EFTPS or to enroll in EFTPS, visit

the EFTPS website at , or call

1-800-555-4477. You can also get Pub. 966, The Secure

Purpose of form. Use Form 945 to report withheld federal

Way to Pay Your Federal Taxes.

income tax from nonpayroll payments. Nonpayroll payments

include:

Voluntary income tax withholding rates for 2011. The

10%, 15%, and 25% voluntary income tax withholding rates

•

Pensions (including section 403(b) and governmental

that applied in 2010 increase to 15%, 28%, and 31%,

section 457(b) plan distributions), annuities, and IRA

respectively, for payments made in 2011. However, at the

distributions;

time these instructions were prepared for printing, an

•

Military retirement;

extension of the previous rates was being discussed in

•

Gambling winnings;

Congress. To find out if additional legislation was enacted to

•

extend the previous rates, monitor the news media or go to

Indian gaming profits;

•

IRS.gov, click on Forms and Publications, and then click on

Voluntary withholding on certain government

Changes to Current Tax Products.

payments; and

•

Backup withholding.

Reminders

Report all federal income tax withholding from nonpayroll

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

payments or distributions annually on one Form 945. Do not

Tax Guide, explains the rules for withholding, depositing,

file more than one Form 945 for any calendar year.

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

Supplemental Tax Guide, includes information on federal

All federal income tax withholding reported on

income tax withholding from pensions, annuities, and Indian

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

gaming profits. For information on withholding from

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

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

federal income tax withholding from wages on Form 945.

and 5754.

All employment taxes and federal income tax withholding

For a list of employment tax products, visit the IRS

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

website at

and select “Employment

reported on Form 941 or Form 944, Form 943 for

Taxes” under the Businesses Topics heading.

agricultural employees, Schedule H (Form 1040) for

How to get forms and publications. You can get most

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

IRS forms and publications by accessing the IRS website at

Do not report on Form 945 federal income tax withheld

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

on distributions to participants from nonqualified pension

(1-800-829-3676).

plans (including nongovernmental section 457(b) plans)

Employment tax adjustment process. If you discover an

and some other deferred compensation arrangements that

error on a previously filed Form 945, make the correction

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

using Form 945-X, Adjusted Annual Return of Withheld

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

Federal Income Tax or Claim for Refund. Form 945-X is a

(Circular E) for more information.

stand-alone form, meaning taxpayers can file Form 945-X

when an error is discovered. For more information, get the

Who must file. If you withhold federal income tax

Instructions for Form 945-X or visit the IRS website at

(including backup withholding) from nonpayroll payments,

IRS.gov and type Correcting Employment Taxes in the

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

search box.

not have to file Form 945 for those years in which you do not

Telephone help. You can call the IRS Business and

have a nonpayroll tax liability. Do not report on Form 945

Specialty Tax Line toll free at 1-800-829-4933 for answers to

withholding that is required to be reported on Form 1042,

your questions about completing Form 945, tax deposit

Annual Withholding Tax Return for U.S. Source Income of

rules, or obtaining an employer identification number (EIN).

Foreign Persons.

Cat. No. 20534D

Instructions For Form 945 - Annual Return Of Withheld Federal Income Tax - 2010

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