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

Line 2. Backup Withholding

Generally, the deposit rules that apply to Form 941 also

apply to Form 945. However, because Form 945 is an

Enter any backup withholding, including backup

annual return, the rules for determining your deposit

withholding on gambling winnings.

schedule (discussed below) are different from those for

Regulated investment companies (RICs) and real

Form 941. See section 11 of Pub. 15 for a detailed

estate investment trusts (REITs) must report any backup

discussion of the deposit rules.

withholding on Form 945 in the year that the dividends are

If the total amount of tax for 2015 is less than

actually paid. This includes January payments of

$2,500, you aren't required to make deposits

TIP

dividends declared during October, November, and

during the year.

December of the prior year. See the Instructions for Form

1099-DIV for special reporting requirements.

Determining Your Deposit Schedule

Line 3. Total Taxes

There are two deposit schedules—monthly or

semiweekly— for determining when you must deposit

Add lines 1 and 2. If total taxes are $2,500 or more, the

withheld federal income tax. These schedules tell you

amount reported on line 3 must equal the total liability for

when a deposit is due after a tax liability arises (that is,

the year reported on line 7M of the Monthly Summary of

you make a payment subject to federal income tax

Federal Tax Liability, or line M of Form 945-A, Annual

withholding, including backup withholding). Before the

Record of Federal Tax Liability.

beginning of each calendar year, you must determine

Line 4. Total Deposits

which of the two deposit schedules you must use.

Enter your total Form 945 deposits for the year, including

For 2016, you are a monthly schedule depositor for

any overpayment that you applied from filing Form 945-X

Form 945 if the total tax reported on your 2014 Form 945

and any overpayment that you applied from your 2014

(line 3) was $50,000 or less. If the total tax reported for

return.

2014 was more than $50,000, you are a semiweekly

Line 5. Balance Due

schedule depositor.

If line 3 is more than line 4, enter the difference on line 5.

If you are a monthly schedule depositor and

Otherwise, see Overpayment, later. You don't have to pay

accumulate a $100,000 liability or more on any

if line 5 is under $1. Generally, you should have a balance

day during a calendar month, your deposit

CAUTION

due only if your total taxes for the year (line 3) are less

schedule changes on the next day to semiweekly for the

than $2,500. If you made payments under the accuracy of

remainder of the year and for the following year. For more

deposits rule, see section 11 of Pub. 15.

information, see the $100,000 Next-Day Deposit Rule in

section 11 of Pub. 15.

If you were required to make federal tax deposits, pay

the amount shown on line 5 by EFT. If you weren't

required to make federal tax deposits, you may pay the

Specific Instructions

amount shown on line 5 by EFT, credit card, debit card,

check, money order, or EFW. For more information on

Line A. Final Return

electronic payment options, visit the IRS website at

If you go out of business or end operations and you will

not have to file Form 945 in the future, file a final return. Be

If you pay by EFT, credit card, or debit card, file your

sure to check the box on line A and enter the date that

return using the Without a payment address under Where

final nonpayroll payments were made.

To File, earlier. Don't file Form 945-V, Payment Voucher.

Line 1. Federal Income Tax Withheld

If you pay by check or money order, make it payable to

“United States Treasury.” Enter your EIN, Form 945, and

Enter the federal income tax that you withheld (or were

the tax period on your check or money order. Complete

required to withhold) from pensions (including

Form 945-V and enclose with Form 945.

distributions from tax-favored retirement plans, for

If line 3 is $2,500 or more and you deposited all taxes

example, section 401(k), section 403(b), and

when due, the amount on line 5 should be zero.

governmental section 457(b) plans), annuities, IRA

distributions, military retirement, Indian gaming profits,

If you didn't make deposits as required and

and gambling winnings (regular gambling withholding

instead pay the taxes with Form 945, you may be

only). Also enter any voluntary amount that you withheld

subject to a penalty.

on certain government payments. If you are required to

CAUTION

report federal income tax withholding on Forms 1099 (for

What if you can't pay in full? If you can't pay the full

example, Form 1099-R or 1099-MISC) or Form W-2G,

amount of tax you owe, you can apply for an installment

you must report the federal income tax withheld on

agreement online.

Form 945.

You can apply for an installment agreement online if:

You can't pay the full amount shown on line 5,

Federal income tax withholding reported on Form

The total amount you owe is $25,000 or less, and

W-2 must be reported on Form 941, Form 943,

Form 944, or Schedule H (Form 1040), as

You can pay the liability in full in 24 months.

CAUTION

appropriate.

To apply using the Online Payment Agreement

Application, go to IRS.gov, click on Tools, then click on

Online Payment Agreement.

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Instructions for Form 945 (2015)

Instructions For Form 945 - Annual Return Of Withheld Federal Income Tax - 2017 Page 4

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