Instructions for IRS Form 945-X "Adjusted Annual Return of Withheld Federal Income Tax or Claim for Refund"

This document contains official instructions for IRS Form 945-X, Adjusted Annual Return of Withheld Federal Income Tax or Claim for Refund - a tax form released and collected by the Internal Revenue Service (IRS), a subdivision of the U.S. Department of the Treasury.

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Instructions for Form 945-X
Department of the Treasury
Internal Revenue Service
(February 2014)
Adjusted Annual Return of Withheld Federal Income Tax or Claim for Refund
Section references are to the Internal Revenue Code
However, see the Caution under Is There a Deadline for
unless otherwise noted.
Filing Form 945-X, later, if you are correcting overreported
amounts during the last 90 days of a period of limitations.
Future Developments
You will use the claim process if you overreported tax and
For the latest information about developments related to
are requesting a refund or abatement of the overreported
Form 945-X and its instructions, such as legislation
amount. Follow the chart on page 8 for help in choosing
enacted after they were published, go to
www.irs.gov/form
whether to use the adjustment process or the claim
945x.
process.
Be sure to give us a detailed explanation on line 7 for
General Instructions:
each correction that you show on Form 945-X.
Understanding Form 945-X
Do not use Form 945-X to correct Forms CT-1,
941, 943, or 944. Instead, use the “X” form that
!
What Is the Purpose of Form 945-X?
corresponds to those forms (Form CT-1 X, 941-X,
CAUTION
943-X, or 944-X). If you did not file a Form 945 for one or
Use Form 945-X to correct administrative errors only on a
more years, do not use Form 945-X. Instead, file Form
previously filed Form 945. An administrative error occurs if
945 for each of those years.
the federal income tax (including backup withholding) you
reported on Form 945 is not the amount you actually
Where Can You Get Help?
withheld from payees. For example, if the total federal
income tax you actually withheld was incorrectly reported
For help filing Form 945-X or for questions about withheld
on Form 945 due to a mathematical or transposition error,
federal income tax and tax corrections, you can:
this would be an administrative error.
Call the IRS Business and Specialty Tax Line toll free at
1-800-829-4933 or 1-800-829-4059 (TDD/TTY for
Use Form 843, Claim for Refund and Request for
persons who are deaf, hard of hearing, or have a speech
Abatement, to request a refund or abatement of assessed
disability) Monday–Friday from 7:00 a.m.– 7:00 p.m. local
interest or penalties. Do not request abatement of
time (Alaska and Hawaii follow Pacific time),
assessed interest or penalties on Form 945 or Form
Visit the IRS website at
www.irs.gov/businesses
and
945-X.
click on the Employment Taxes link under Businesses
We use the terms “correct” and “corrections” on
Topics, or
Form 945-X and in these instructions to include
See Pub. 15 (Circular E), Employer's Tax Guide.
TIP
interest-free adjustments under sections 6205
See also How Can You Order Forms, Instructions, and
and 6413 and claims for refund and abatement under
Publications from the IRS, later.
sections 6402, 6414, and 6404. See Rev. Rul. 2009-39 for
examples of how the interest-free adjustment and claim
When Should You File Form 945-X?
for refund rules apply in 10 different situations. You can
find Rev. Rul. 2009-39, 2009–52 I.R.B. 951, at
File Form 945-X when you discover an administrative
www.irs.gov/irb/2009-52_IRB/ar14.html.
error on a previously filed Form 945.
However, if your only errors on Form 945 relate to
When you discover an error on a previously filed Form
federal tax liabilities reported on your Monthly Summary of
945, you must:
Federal Tax Liability on Form 945 or on Form 945-A,
Correct that error using Form 945-X,
Annual Record of Federal Tax Liability, do not file Form
File a separate Form 945-X for each Form 945 that you
945-X. For more information about correcting federal tax
are correcting, and
liabilities reported on your Monthly Summary of Federal
File Form 945-X separately. Do not file Form 945-X
Tax Liability on Form 945 or on Form 945-A, see the Form
with Form 945.
945-A instructions.
Report the correction of underreported and
Due dates. The due date for filing Form 945-X depends
overreported amounts for the same year on a single Form
on when you discover an error and if you underreported or
945-X, unless you are requesting a refund or abatement. If
overreported tax. If you underreported tax, see
you are requesting a refund or abatement, file one Form
Underreported tax later. For overreported amounts, you
945-X correcting the underreported amounts and a
may choose to either make an interest-free adjustment or
second Form 945-X correcting the overreported amounts.
file a claim for refund or abatement. If you are correcting
overreported amounts, see Overreported tax—adjustment
You will use the adjustment process if you
process and Overreported tax—claim process, later.
underreported tax and are making a payment, or if you
overreported tax and will be applying the credit to Form
If any due date falls on a Saturday, Sunday, or legal
945 for the period during which you file Form 945-X.
holiday, you may file Form 945-X on the next business
Feb 19, 2014
Cat. No. 20337I
Instructions for Form 945-X
Department of the Treasury
Internal Revenue Service
(February 2014)
Adjusted Annual Return of Withheld Federal Income Tax or Claim for Refund
Section references are to the Internal Revenue Code
However, see the Caution under Is There a Deadline for
unless otherwise noted.
Filing Form 945-X, later, if you are correcting overreported
amounts during the last 90 days of a period of limitations.
Future Developments
You will use the claim process if you overreported tax and
For the latest information about developments related to
are requesting a refund or abatement of the overreported
Form 945-X and its instructions, such as legislation
amount. Follow the chart on page 8 for help in choosing
enacted after they were published, go to
www.irs.gov/form
whether to use the adjustment process or the claim
945x.
process.
Be sure to give us a detailed explanation on line 7 for
General Instructions:
each correction that you show on Form 945-X.
Understanding Form 945-X
Do not use Form 945-X to correct Forms CT-1,
941, 943, or 944. Instead, use the “X” form that
!
What Is the Purpose of Form 945-X?
corresponds to those forms (Form CT-1 X, 941-X,
CAUTION
943-X, or 944-X). If you did not file a Form 945 for one or
Use Form 945-X to correct administrative errors only on a
more years, do not use Form 945-X. Instead, file Form
previously filed Form 945. An administrative error occurs if
945 for each of those years.
the federal income tax (including backup withholding) you
reported on Form 945 is not the amount you actually
Where Can You Get Help?
withheld from payees. For example, if the total federal
income tax you actually withheld was incorrectly reported
For help filing Form 945-X or for questions about withheld
on Form 945 due to a mathematical or transposition error,
federal income tax and tax corrections, you can:
this would be an administrative error.
Call the IRS Business and Specialty Tax Line toll free at
1-800-829-4933 or 1-800-829-4059 (TDD/TTY for
Use Form 843, Claim for Refund and Request for
persons who are deaf, hard of hearing, or have a speech
Abatement, to request a refund or abatement of assessed
disability) Monday–Friday from 7:00 a.m.– 7:00 p.m. local
interest or penalties. Do not request abatement of
time (Alaska and Hawaii follow Pacific time),
assessed interest or penalties on Form 945 or Form
Visit the IRS website at
www.irs.gov/businesses
and
945-X.
click on the Employment Taxes link under Businesses
We use the terms “correct” and “corrections” on
Topics, or
Form 945-X and in these instructions to include
See Pub. 15 (Circular E), Employer's Tax Guide.
TIP
interest-free adjustments under sections 6205
See also How Can You Order Forms, Instructions, and
and 6413 and claims for refund and abatement under
Publications from the IRS, later.
sections 6402, 6414, and 6404. See Rev. Rul. 2009-39 for
examples of how the interest-free adjustment and claim
When Should You File Form 945-X?
for refund rules apply in 10 different situations. You can
find Rev. Rul. 2009-39, 2009–52 I.R.B. 951, at
File Form 945-X when you discover an administrative
www.irs.gov/irb/2009-52_IRB/ar14.html.
error on a previously filed Form 945.
However, if your only errors on Form 945 relate to
When you discover an error on a previously filed Form
federal tax liabilities reported on your Monthly Summary of
945, you must:
Federal Tax Liability on Form 945 or on Form 945-A,
Correct that error using Form 945-X,
Annual Record of Federal Tax Liability, do not file Form
File a separate Form 945-X for each Form 945 that you
945-X. For more information about correcting federal tax
are correcting, and
liabilities reported on your Monthly Summary of Federal
File Form 945-X separately. Do not file Form 945-X
Tax Liability on Form 945 or on Form 945-A, see the Form
with Form 945.
945-A instructions.
Report the correction of underreported and
Due dates. The due date for filing Form 945-X depends
overreported amounts for the same year on a single Form
on when you discover an error and if you underreported or
945-X, unless you are requesting a refund or abatement. If
overreported tax. If you underreported tax, see
you are requesting a refund or abatement, file one Form
Underreported tax later. For overreported amounts, you
945-X correcting the underreported amounts and a
may choose to either make an interest-free adjustment or
second Form 945-X correcting the overreported amounts.
file a claim for refund or abatement. If you are correcting
overreported amounts, see Overreported tax—adjustment
You will use the adjustment process if you
process and Overreported tax—claim process, later.
underreported tax and are making a payment, or if you
overreported tax and will be applying the credit to Form
If any due date falls on a Saturday, Sunday, or legal
945 for the period during which you file Form 945-X.
holiday, you may file Form 945-X on the next business
Feb 19, 2014
Cat. No. 20337I
Is There a Deadline for Filing Form
day. If we receive Form 945-X after the due date, we will
treat Form 945-X as filed on time if the envelope
945-X?
containing Form 945-X is properly addressed, contains
sufficient postage, and is postmarked by the U.S. Postal
Generally, you may correct overreported taxes on a
Service on or before the due date, or sent by an
previously filed Form 945 if you file Form 945-X within 3
IRS-designated private delivery service on or before the
years of the date Form 945 was filed or 2 years from the
due date. If you do not follow these guidelines, we will
date you paid the tax reported on Form 945, whichever is
consider Form 945-X filed when it is actually received.
later. You may correct underreported taxes on a
See Pub. 15 (Circular E) for more information on legal
previously filed Form 945 if you file Form 945-X within 3
holidays and IRS-designated private delivery services.
years of the date the Form 945 was filed. We call each of
Underreported tax. If you are correcting underreported
these time frames a “period of limitations.” For purposes
tax, you must file Form 945-X by the due date of the return
of the period of limitations, Form 945 is considered filed
for the return period in which you discovered the error
on April 15 of the succeeding calendar year if filed before
(January 31 of the following year) and pay the amount
that date.
you owe by the time you file. Doing so will generally
Example. You filed your 2010 Form 945 on January
ensure that your correction is interest free and not subject
27, 2011, and payments were timely made. The IRS treats
to failure-to-pay or failure-to-deposit penalties. See What
the return as if it were filed on April 15, 2011. On January
About Penalties and Interest, later.
22, 2014, you discovered that you overreported federal
If Form 945-X is filed late (after the due date of the
income tax withheld on that form by $10,000 due to a
return for the return period in which you discovered the
mathematical error. To correct the error, you must file
error), you must attach an amended Form 945-A.
Form 945-X by April 15, 2014, which is the end of the
Otherwise, the IRS may assess an “averaged”
period of limitations, and use the claim process.
failure-to-deposit penalty. The total tax reported on line M
If you file Form 945-X to correct overreported
of Form 945-A must match the corrected tax (Form 945,
amounts in the last 90 days of a period of
line 3, combined with any correction reported on Form
!
limitations (after January 15, 2014, in the
945-X, line 5) for the year, less any previous abatements
CAUTION
example above), you must use the claim process. You
and interest-free tax assessments.
cannot use the adjustment process. If you are also
Example—You owe tax. On February 6, 2013, you
correcting underreported amounts, you must file another
discovered that you underreported $10,000 of federal
Form 945-X to correct the underreported amounts using
income tax actually withheld on your 2012 Form 945 due
the adjustment process and pay any tax due.
to a mathematical error. File Form 945-X and pay the
amount you owe by January 31, 2014, because you
Where Should You File Form 945-X?
discovered the error in 2013 and January 31, 2014, is the
due date for that year. If you file Form 945-X before
Send your completed Form 945-X to the Internal Revenue
January 31, 2014, pay the amount you owe when you file.
Service Center shown below.
Overreported tax—adjustment process. If you
overreported tax and choose to apply the credit to Form
IF you are in . . .
THEN use this address . . .
945, file an adjusted return on Form 945-X soon after you
Special filing addresses for exempt
discovered the error but more than 90 days before the
organizations; federal, state, and local
Department of the Treasury
period of limitations on the credit or refund for correcting
governmental entities; and Indian tribal
Internal Revenue Service
governmental entities; regardless of
Ogden, UT 84201-0042
the Form 945 expires. See Is There a Deadline for Filing
location
Form 945-X, later.
Connecticut, Delaware, District of
Example—You want your credit applied to Form
Columbia, Florida, Georgia, Illinois,
945. On May 1, 2014, you discover that you overreported
Indiana, Kentucky, Maine, Maryland,
Massachusetts, Michigan, New
Department of the Treasury
$9,000 in backup withholding tax on your 2013 Form 945
Hampshire, New Jersey, New York,
Internal Revenue Service
due to a transposition error. You file Form 945-X on June
North Carolina, Ohio, Pennsylvania,
Cincinnati, OH 45999-0042
2, 2014. The IRS treats your credit as a tax deposit made
Rhode Island, South Carolina,
on January 1, 2014. When you file your 2014 Form 945,
Tennessee, Vermont, Virginia, West
Virginia, Wisconsin
include the amount from Form 945-X, line 5, on line 4
(“Total deposits”) of your 2014 Form 945.
Alabama, Alaska, Arizona, Arkansas,
California, Colorado, Hawaii, Idaho,
Overreported tax—claim process. If you overreported
Iowa, Kansas, Louisiana, Minnesota,
Department of the Treasury
tax, you may choose to file a claim for refund or
Mississippi, Missouri, Montana,
Internal Revenue Service
Nebraska, Nevada, New Mexico,
abatement on Form 945-X any time before the period of
Ogden, UT 84201-0042
North Dakota, Oklahoma, Oregon,
limitations on the credit or refund expires. If you also need
South Dakota, Texas, Utah,
to correct any underreported amounts, you must file
Washington, Wyoming
another Form 945-X reporting only corrections to the
No legal residence or principal place of
Internal Revenue Service
underreported amounts. See Is There a Deadline for Filing
business in any state
P.O. Box 409101
Form 945-X, later.
Ogden, UT 84409
-2-
Instructions for Form 945-X (Rev. 2-2014)
How Should You Complete Form
Always show an amount for cents. Do not round entries
to whole dollars.
945-X?
Complete both pages and sign Form 945-X on page 2.
Staple multiple sheets in the upper-left corner.
Use One Form 945-X for Each Year You Are
What About Penalties and Interest?
Correcting
Generally, your correction of an underreported amount will
Use a separate Form 945-X for each Form 945 that you
not be subject to a failure-to-pay penalty,
are correcting. For example, if you found errors on your
failure-to-deposit penalty, or interest if you:
Forms 945 for 2012 and 2013, file one Form 945-X to
File on time (by the due date of Form 945 for the year in
correct the 2012 Form 945. File a second Form 945-X to
which you discover the error),
correct the 2013 Form 945.
Pay the amount shown on line 5 by the time you file
EIN, Name, and Address
Form 945-X,
Enter your EIN, name, and address in the spaces
Enter the date you discovered the error, and
provided. Also enter your name and EIN on the top of
Explain in detail the grounds and facts relied on to
page 2 and on any attachments. If your address has
support the correction.
changed since you filed your Form 945, enter the
No correction will be eligible for interest-free treatment
corrected information and the IRS will update your
if any of the following apply.
address of record.
The amounts underreported relate to an issue that was
raised in an examination of a prior period.
Return You Are Correcting
You knowingly underreported your tax liability.
In the box at the top of page 1 of Form 945-X, enter the
You received a notice and demand for payment.
calendar year of the Form 945 you are correcting. Enter
If you receive a notice about a penalty after you file this
the calendar year on page 2. Be sure to write your name,
return, reply to the notice with an explanation and we will
EIN, Form 945-X, and calendar year on the top of any
determine if you meet reasonable-cause criteria. Do not
attachments.
attach an explanation when you file your return.
Enter the Date You Discovered Errors
Overview of the Process
You must enter the date you discovered errors. You
discover an error when you have enough information to be
The process to correct a previously filed Form 945 or file a
able to correct it. If you are reporting several errors you
claim for refund is outlined below.
discovered at different times, enter the earliest date you
If you underreported the tax. If you underreported
discovered an error here. Report any subsequent dates
the tax actually withheld on a previously filed Form 945,
and related errors on line 7.
check the box on line 1 and pay any additional amount
you owe by the time you file Form 945-X. For details on
Must You Make an Entry on Each Line?
how to make a payment, see the instructions for line 5,
You must provide all of the information requested at the
later.
top of page 1 of Form 945-X. You must check one box
Example—You underreported withheld income
(but not both) in Part 1. In Part 2, if any line does not
taxes. On June 20, 2013, you discovered an error that
apply, leave it blank. Complete Parts 3 and 4 as
results in additional tax on your 2012 Form 945. File Form
instructed.
945-X by January 31, 2014, and pay the amount you owe
by the time you file. See When Should You File Form
How Should You Report Negative Amounts?
945-X, earlier. Do not attach Form 945-X to your 2013
Form 945-X uses negative numbers to show reductions in
Form 945.
tax (credits) and positive numbers to show additional tax
If you overreported the tax. If you overreported the
(amounts you owe).
tax actually withheld on a previously filed Form 945, you
may choose one of the following options.
When reporting a negative amount in column 3, use a
Use the adjustment process. Check the box on line 1 to
minus sign instead of parentheses. For example, enter
apply any credit (negative amount) from line 5 to Form
“-10.59” instead of “(10.59).” However, if you are
945 for the year during which you file Form 945-X.
completing the return on your computer and your software
Use the claim process. Check the box on line 2 to file a
only allows you to use parentheses to report negative
claim on Form 945-X requesting a refund or abatement of
amounts, you may use them.
the amount shown on line 5.
How Should You Make Entries on Form 945-X?
To ensure that the IRS has enough time to
You can help the IRS process your Form 945-X timely and
process a credit for an overreporting
TIP
accurately if you follow these guidelines.
adjustment in the year during which you file
Type or print your entries.
Form 945-X, you are encouraged to file Form 945-X
Use Courier font (if possible) for all typed or
correcting the overreported amount in the first 11 months
computer-generated entries.
of a year. For example, if you discover an overreported
Omit dollar signs. You may use commas and decimal
amount in December, you may want to file Form 945-X
points, if desired. Enter dollar amounts to the left of any
during the first 11 months of the next year. This should
preprinted decimal point and cents to the right of it.
ensure that the IRS will have enough time to process
-3-
Instructions for Form 945-X (Rev. 2-2014)
Form 945-X so the credit will be posted before you file
(credit) shown on line 5. Do not check this box if you are
Form 945, thus avoiding an erroneous balance due notice
correcting any underreported amounts on this form.
from the IRS. See the example below.
You must check the box on line 2 if you have a credit
Example—You want your overreported tax applied
and the period of limitations on credit or refund for Form
as a credit to Form 945. On December 18, 2014, you
945 will expire within 90 days of the date you file Form
discover you overreported your tax on your 2013 Form
945-X. See Is There a Deadline for Filing Form 945-X,
945 and want to choose the adjustment process. To allow
earlier.
the IRS enough time to process the credit, you file Form
The IRS usually processes claims shortly after they are
945-X on January 2, 2015, and take the credit on your
filed. IRS will notify you if your claim is denied, accepted
2015 Form 945.
as filed, or selected to be examined. See Pub. 556,
Examination of Returns, Appeal Rights, and Claims for
Specific Instructions:
Refund, for more information.
Part 1: Select ONLY One Process
Unless the IRS corrects Form 945-X during processing
or you owe other taxes, penalties, or interest, IRS will
Because Form 945-X may be used to file either an
refund the amount shown on line 5, plus any interest that
adjusted return of withheld federal income tax or a claim
applies.
for refund or abatement, you must check one box on
Part 2: Enter the Corrections for the
either line 1 or line 2. Do not check both boxes.
Calendar Year You Are Correcting
1. Adjusted Return of Withheld Federal Income
Tax
What Amounts Should You Report in Part 2?
Check the box on line 1 if you are correcting
In columns 1 and 2 of lines 3 and 4, show amounts for all
underreported amounts or overreported amounts and you
of your payees, not just for those payees whose amounts
would like to use the adjustment process to correct the
you are correcting.
errors.
If a correction that you report in column 3 includes both
If you are correcting both underreported amounts and
underreported and overreported amounts (see the
overreported amounts on this form, you must check this
instructions for line 6), give us details for each error on
box. If you check this box, any negative amount shown on
line 7.
line 5 will be applied as a credit (tax deposit) to your Form
945 for the year in which you are filing this form. See
You may correct federal income tax withholding errors
Example—You want your overreported tax applied as a
for prior years if the amounts shown on Form 945 do not
credit to Form 945 above.
agree with the amounts you actually withheld, that is, an
administrative error. See section 13 of Pub. 15 (Circular E)
If you owe tax. Pay the amount shown on line 5 by the
for more information about administrative errors.
time you file Form 945-X. Generally, you will not be
charged interest if you file on time, pay on time, enter the
If you previously adjusted or amended Form 945
date you discovered the error, and explain the correction
using Form 945-X or because of an IRS
!
on line 7.
examination change, show amounts in column 2
CAUTION
that include those previously reported corrections.
If you have a credit. You overreported withheld federal
income tax (you have a negative amount on line 5) and
3. Federal Income Tax Withheld
want the IRS to apply the credit to Form 945 for the year
during which you filed Form 945-X. The IRS will apply
If you are correcting the federal income tax withheld you
your credit on the first day of that year. However, the
reported on Form 945, line 1, enter the total corrected
credit you show on line 5 of Form 945-X may not be fully
amount for all payees in column 1. In column 2, enter the
available on your Form 945 if the IRS corrects it during
amount you originally reported or as previously corrected.
processing or you owe other taxes, penalties, or interest.
In column 3, enter the difference between columns 1 and
The IRS will notify you if your claimed credit changes or if
2.
the amount available as a credit on Form 945 was
reduced because of unpaid taxes, penalties, or interest.
line 3 (column 1)
-line 3 (column 2)
Do not check the box on line 1 if you are
correcting overreported amounts and the period
line 3 (column 3)
If the amount in column 2 is larger than the
!
of limitations on credit or refund for Form 945 will
amount in column 1, use a minus sign in
CAUTION
column 3.
expire within 90 days of the date you file Form 945-X.
Instead, check the box on line 2. See Is There a Deadline
Example—Federal income tax withheld increased.
for Filing Form 945-X, earlier.
You reported $9,000 as federal income tax withheld on
line 1 of your 2012 Form 945. In July of 2013, you
2. Claim
discovered that you had overlooked $1,000 in federal
Check the box on line 2 to use the claim process if you are
income tax actually withheld from one of your payees. To
correcting overreported amounts only and you are
correct the error, figure the difference on Form 945-X as
claiming a refund or abatement for the negative amount
shown.
-4-
Instructions for Form 945-X (Rev. 2-2014)
Read the instructions for line 3 for more
Column 1 (corrected amount)
10,000.00
information on completing line 4. For correction
TIP
Column 2 (Form 945, line 1)
-
9,000.00
purposes, there is no distinction between federal
Column 3 (difference)
1,000.00
income tax withheld from pensions, annuities, IRAs,
gambling winnings, etc. and backup withholding.
Example—Federal income tax withheld decreased.
You reported $9,600 as federal income tax withheld on
5. Total
line 1 of your 2012 Form 945. In December of 2013, you
discovered that you actually withheld $6,900 but reported
Combine the amounts from lines 3 and 4 of column 3.
the higher amount due to a typographical (administrative)
Enter the result on line 5.
error. To correct the error, figure the difference on Form
Your credit. If the amount entered on line 5 is less than
945-X as shown.
zero, for example, “-115.00,” you have a credit because
you overreported withheld federal income tax.
Column 1 (corrected amount)
6,900.00
If you checked the box on line 1, include this amount
Column 2 (Form 945, line 1)
-
9,600.00
on line 4 (“Total deposits”) of Form 945 for the year during
Column 3 (difference)
-2,700.00
which you file Form 945-X. Do not make changes to your
Monthly Summary of Federal Tax Liability on Form 945 or
Example—Failure to withhold income tax when
on Form 945-A. The amounts reported on the record
required. You were required to withhold $400 of federal
should reflect your actual tax liability for the period.
income tax from a new payee in December of 2012 but
If you checked the box on line 2, you are filing a claim
withheld nothing. You discovered the error on March 15,
for refund or abatement of the amount shown.
2013. You cannot file Form 945-X to correct your 2012
If your credit is less than $1, we will send a refund or
Form 945 because the error involves a previous year and
apply it only if you ask us in writing to do so.
the amount previously reported for the new payee (zero)
represents the actual amount withheld from the new
Amount you owe. If the amount on line 5 is a positive
payee during 2012.
number, you must pay the amount you owe by the time
you file Form 945-X. You may not use any credit that you
Example—Administrative error. You had three
show on another Form 945-X to pay for the amount you
payees. In 2012, you withheld $1,000 of federal income
owe, even if you filed for the amount you owe and the
tax from payee A, $2,000 from payee B, and $6,000 from
credit at the same time.
payee C. The total amount of federal income tax you
withheld was $9,000. You mistakenly reported $6,000 on
Payment Methods. You may pay the amount you owe
line 1 of your 2012 Form 945. You discovered the error on
on line 5 electronically using the Electronic Federal Tax
March 15, 2013. This is an example of an administrative
Payment System (EFTPS), by credit or debit card, or by
error that may be corrected in a later calendar year
check or money order.
because the amount actually withheld from payees differs
The preferred method of payment is EFTPS. For
from the amount reported on Form 945. Use Form 945-X
information, visit www.eftps.gov, call EFTPS Customer
to correct the error. Enter $9,000 in column 1 of line 3 and
Service at 1-800-555-4477 or 1-800-733-4829 (TDD), or
$6,000 in column 2 of line 3. Subtract the amount in
see Pub. 966, Electronic Federal Tax Payment System: A
column 2 from the amount in column 1.
Guide To Getting Started.
For more information on paying by credit or debit card,
visit the IRS website at www.irs.gov/e-pay.
Column 1 (corrected amount)
9,000.00
If you pay by check or money order, make it payable to
Column 2 (Form 945, line 1)
- 6,000.00
“United States Treasury.” On your check or money order,
Column 3 (difference)
3,000.00
be sure to write your EIN, “Form 945-X,” and the year
Be sure to explain the reasons for this correction on
corrected.
line 7.
You do not have to pay if the amount you owe is less
than $1.
4. Backup Withholding
Previously assessed FTD penalty. If line 5 reflects
If you are correcting the backup withholding of federal
overreported tax and the IRS previously assessed a
income tax you reported on Form 945, line 2, enter the
failure-to-deposit (FTD) penalty, you may be able to
total corrected amount in column 1. In column 2, enter the
reduce the penalty. For more information, see the Form
amount you originally reported or as previously corrected.
945-A instructions.
In column 3, enter the difference between columns 1 and
Part 3: Explain Your Corrections for
2.
the Calendar Year You Are Correcting
line 4 (column 1)
-line 4 (column 2)
6. Correcting Both Underreported and
line 4 (column 3)
If the amount in column 2 is larger than the
Overreported Amounts
amount in column 1, use a minus sign in
Check the box on line 6 if any corrections you entered on
column 3.
line 3 or line 4 in column 3 reflect both underreported and
overreported amounts.
-5-
Instructions for Form 945-X (Rev. 2-2014)
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