2018
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
use the same-day wire payment method, you will need to
unless otherwise noted.
make arrangements with your financial institution ahead of
time. Please check with your financial institution regarding
Future Developments
availability, deadlines, and costs. Your financial institution
may charge you a fee for payments made this way. To
For the latest information about developments related to
learn more about the information you will need to give
Form 945 and its instructions, such as legislation enacted
your financial institution to make a same-day wire
after they were published, go to IRS.gov/Form945.
payment, go to IRS.gov/SameDayWire.
Timeliness of federal tax deposits. If a deposit is
What's New
required to be made on a day that isn't a business day, the
deposit is considered timely if it is made by the close of
New filing addresses. The filing addresses have
the next business day. A business day is any day other
changed for some employers. See
Where To
File, later,
than a Saturday, Sunday, or legal holiday. The term “legal
before filing your return.
holiday” for deposit purposes includes only those legal
New withholding rates. The Tax Cuts and Jobs Act
holidays in the District of Columbia. Legal holidays in the
(Public Law 115-97) lowered the withholding rates on
District of Columbia are provided in section 11 of Pub. 15.
certain payments. See
Voluntary Income Tax
Withholding,
Electronic filing and payment. Now, more than ever
later, for the withholding rates that were effective
before, businesses can enjoy the benefits of filing tax
beginning January 1, 2018.
returns and paying their federal taxes electronically.
Reminders
Whether you rely on a tax professional or handle your own
taxes, the IRS offers you convenient programs to make
Correcting a previously filed Form 945. If you
filing and paying easier. Spend less time worrying about
discover an error on a previously filed Form 945, make the
taxes and more time running your business. Use e-file and
correction using Form 945-X, Adjusted Annual Return of
EFTPS to your benefit.
Withheld Federal Income Tax or Claim for Refund. Form
For e-file, go to
IRS.gov/EmploymentEfile
for additional
945-X is filed separately from Form 945. For more
information. A fee may be charged to file electronically.
information, see the Instructions for Form 945-X or go to
For EFTPS, go to
EFTPS.gov
or call EFTPS Customer
IRS.gov/CorrectingEmploymentTaxes.
Service at 800-555-4477 or 800-733-4829 (TDD) for
Federal tax deposits must be made by electronic
additional information.
funds transfer (EFT). You must use EFT to make all
If you're filing your tax return or paying your
federal tax deposits. Generally, an EFT is made using the
federal taxes electronically, a valid employer
!
Electronic Federal Tax Payment System (EFTPS). If you
identification number (EIN) is required at the time
don't want to use EFTPS, you can arrange for your tax
CAUTION
the return is filed or the payment is made. If a valid EIN
professional, financial institution, payroll service, or other
isn't provided, the return or payment won't be processed.
trusted third party to make electronic deposits on your
This may result in penalties. See
Employer Identification
behalf. Also, you may arrange for your financial institution
Number
(EIN), later, for more information about applying
to initiate a same-day wire payment on your behalf.
for an EIN.
EFTPS is a free service provided by the Department of
Treasury. Services provided by your tax professional,
Electronic funds withdrawal (EFW). If you file Form
financial institution, payroll service, or other third party
945 electronically, you can e-file and use EFW to pay the
may have a fee.
balance due in a single step using tax preparation
software or through a tax professional. However, don't use
For more information on making federal tax deposits,
EFW to make federal tax deposits. For more information
see section 11 of Pub. 15. To get more information about
on paying your taxes using EFW, go to IRS.gov/EFW.
EFTPS or to enroll in EFTPS, go to EFTPS.gov, or call
800-555-4477 or 800-733-4829 (TDD). Additional
Credit or debit card payments. You can pay the
information about EFTPS is also available in Pub. 966.
balance due shown on Form 945 by credit or debit card.
Your payment will be processed by a payment processor
For an EFTPS deposit to be on time, you must
who will charge a processing fee. Don't use a credit or
submit the deposit by 8 p.m. Eastern time the day
!
debit card to make federal tax deposits. For more
before the date the deposit is due.
CAUTION
information on paying your taxes with a credit or debit
Same-day wire payment option. If you fail to submit a
card, go to IRS.gov/PayByCard.
deposit transaction on EFTPS by 8 p.m. Eastern time the
Online payment agreement. You may be eligible to
day before the date a deposit is due, you can still make
apply for an installment agreement online if you can't pay
your deposit on time by using the Federal Tax Collection
the full amount of tax you owe when you file your return.
Service (FTCS) to make a same-day wire payment. To
Oct 03, 2018
Cat. No. 20534D
2018
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
use the same-day wire payment method, you will need to
unless otherwise noted.
make arrangements with your financial institution ahead of
time. Please check with your financial institution regarding
Future Developments
availability, deadlines, and costs. Your financial institution
may charge you a fee for payments made this way. To
For the latest information about developments related to
learn more about the information you will need to give
Form 945 and its instructions, such as legislation enacted
your financial institution to make a same-day wire
after they were published, go to IRS.gov/Form945.
payment, go to IRS.gov/SameDayWire.
Timeliness of federal tax deposits. If a deposit is
What's New
required to be made on a day that isn't a business day, the
deposit is considered timely if it is made by the close of
New filing addresses. The filing addresses have
the next business day. A business day is any day other
changed for some employers. See
Where To
File, later,
than a Saturday, Sunday, or legal holiday. The term “legal
before filing your return.
holiday” for deposit purposes includes only those legal
New withholding rates. The Tax Cuts and Jobs Act
holidays in the District of Columbia. Legal holidays in the
(Public Law 115-97) lowered the withholding rates on
District of Columbia are provided in section 11 of Pub. 15.
certain payments. See
Voluntary Income Tax
Withholding,
Electronic filing and payment. Now, more than ever
later, for the withholding rates that were effective
before, businesses can enjoy the benefits of filing tax
beginning January 1, 2018.
returns and paying their federal taxes electronically.
Reminders
Whether you rely on a tax professional or handle your own
taxes, the IRS offers you convenient programs to make
Correcting a previously filed Form 945. If you
filing and paying easier. Spend less time worrying about
discover an error on a previously filed Form 945, make the
taxes and more time running your business. Use e-file and
correction using Form 945-X, Adjusted Annual Return of
EFTPS to your benefit.
Withheld Federal Income Tax or Claim for Refund. Form
For e-file, go to
IRS.gov/EmploymentEfile
for additional
945-X is filed separately from Form 945. For more
information. A fee may be charged to file electronically.
information, see the Instructions for Form 945-X or go to
For EFTPS, go to
EFTPS.gov
or call EFTPS Customer
IRS.gov/CorrectingEmploymentTaxes.
Service at 800-555-4477 or 800-733-4829 (TDD) for
Federal tax deposits must be made by electronic
additional information.
funds transfer (EFT). You must use EFT to make all
If you're filing your tax return or paying your
federal tax deposits. Generally, an EFT is made using the
federal taxes electronically, a valid employer
!
Electronic Federal Tax Payment System (EFTPS). If you
identification number (EIN) is required at the time
don't want to use EFTPS, you can arrange for your tax
CAUTION
the return is filed or the payment is made. If a valid EIN
professional, financial institution, payroll service, or other
isn't provided, the return or payment won't be processed.
trusted third party to make electronic deposits on your
This may result in penalties. See
Employer Identification
behalf. Also, you may arrange for your financial institution
Number
(EIN), later, for more information about applying
to initiate a same-day wire payment on your behalf.
for an EIN.
EFTPS is a free service provided by the Department of
Treasury. Services provided by your tax professional,
Electronic funds withdrawal (EFW). If you file Form
financial institution, payroll service, or other third party
945 electronically, you can e-file and use EFW to pay the
may have a fee.
balance due in a single step using tax preparation
software or through a tax professional. However, don't use
For more information on making federal tax deposits,
EFW to make federal tax deposits. For more information
see section 11 of Pub. 15. To get more information about
on paying your taxes using EFW, go to IRS.gov/EFW.
EFTPS or to enroll in EFTPS, go to EFTPS.gov, or call
800-555-4477 or 800-733-4829 (TDD). Additional
Credit or debit card payments. You can pay the
information about EFTPS is also available in Pub. 966.
balance due shown on Form 945 by credit or debit card.
Your payment will be processed by a payment processor
For an EFTPS deposit to be on time, you must
who will charge a processing fee. Don't use a credit or
submit the deposit by 8 p.m. Eastern time the day
!
debit card to make federal tax deposits. For more
before the date the deposit is due.
CAUTION
information on paying your taxes with a credit or debit
Same-day wire payment option. If you fail to submit a
card, go to IRS.gov/PayByCard.
deposit transaction on EFTPS by 8 p.m. Eastern time the
Online payment agreement. You may be eligible to
day before the date a deposit is due, you can still make
apply for an installment agreement online if you can't pay
your deposit on time by using the Federal Tax Collection
the full amount of tax you owe when you file your return.
Service (FTCS) to make a same-day wire payment. To
Oct 03, 2018
Cat. No. 20534D
For more information, see
What if you can't pay in
full,
Payments subject to backup withholding.
later.
Report all federal income tax withholding from
Paid preparers. If you use a paid preparer to complete
nonpayroll payments or distributions annually on one
Form 945, the paid preparer must complete and sign the
Form 945. Don't file more than one Form 945 for any
paid preparer's section of the form.
calendar year.
All federal income tax withholding reported on
Outsourcing your tax duties. You're responsible to
Forms 1099 (for example, Form 1099-R, Distributions
ensure that tax returns are filed and deposits and
From Pensions, Annuities, Retirement or Profit-Sharing
payments are made, even if you contract with a third party
Plans, IRAs, Insurance Contracts, etc.; or 1099-MISC,
to perform these acts. You remain responsible if the third
Miscellaneous Income) or Form W-2G, Certain Gambling
party fails to perform any required action. Before you
Winnings, must be reported on Form 945.
choose to outsource any of your tax duties (that is,
withholding, reporting, and paying over federal income
Don't report federal income tax withholding from wages
tax) to a third-party payer, such as a payroll service
on Form 945. All federal income tax withholding and
provider or reporting agent, go to
IRS.gov/
employment taxes reported on Form W-2, Wage and Tax
OutsourcingPayrollDuties
for helpful information on this
Statement, must be reported on Form 941, Employer's
topic. For more information on the different types of
QUARTERLY Federal Tax Return; Form 943, Employer's
third-party payer arrangements, see section 16 in Pub. 15.
Annual Federal Tax Return for Agricultural Employees;
Form 944, Employer's ANNUAL Federal Tax Return;
How to get forms and publications. You can download
Schedule H (Form 1040), Household Employment Taxes;
or print some of the forms and publications you may need
or Form CT-1, Employer's Annual Railroad Retirement
on IRS.gov/Forms. Otherwise, you can go to
IRS.gov/
Tax Return, as appropriate.
OrderForms
to place an order and have forms mailed to
you. You should receive your order within 10 business
Don't report on Form 945 federal income tax withheld
days.
on distributions to participants from nonqualified pension
plans (including nongovernmental section 457(b) plans)
Where can you get telephone help? For answers to
and some other deferred compensation arrangements
your questions about completing Form 945 or tax deposit
that are treated as wages and are reported on Form W-2.
rules, you can call the IRS at 800-829-4933 (Business and
Report such withholding on Form 941 or Form 944. See
Specialty Tax Line) or 800-829-4059 (TDD/TTY for
Distributions from nonqualified pension plans and
persons who are deaf, hard of hearing, or have a speech
deferred compensation plans in the Reminders section of
disability) Monday–Friday from 7:00 a.m. to 7:00 p.m.
Pub. 15 for more information.
local time (Alaska and Hawaii follow Pacific time).
Compensation paid to H-2A visa holders. Generally,
Photographs of missing children. The IRS is a proud
report compensation of $600 or more paid to foreign
partner with the
National Center for Missing & Exploited
agricultural workers who entered the country on H-2A
Children®
(NCMEC). Photographs of missing children
visas on Form W-2 and Form 943. However, if an H-2A
selected by the Center may appear in instructions on
visa worker didn't provide the employer with a taxpayer
pages that would otherwise be blank. You can help bring
identification number, the employee is subject to backup
these children home by looking at the photographs and
withholding. The employer must report the wages and
calling 1-800-THE-LOST (1-800-843-5678) if you
backup withholding on Form 1099-MISC. The employer
recognize a child.
must also report the backup withholding on Form 945,
General Instructions
line 2. For more information on foreign agricultural
workers on H-2A visas, go to IRS.gov/H2A.
Purpose of Form 945
Who Must File
These instructions give you some background information
If you withhold federal income tax (including backup
about Form 945. They tell you who must file Form 945,
withholding) from nonpayroll payments, you must file
how to complete it line by line, and when and where to file
Form 945. See
Purpose of Form
945, earlier. You don't
it.
have to file Form 945 for those years in which you don't
have a nonpayroll tax liability. Don't report on Form 945
Use Form 945 to report withheld federal income tax
withholding that is required to be reported on Form 1042,
from nonpayroll payments. Nonpayroll payments include:
Annual Withholding Tax Return for U.S. Source Income of
Pensions (including distributions from tax-favored
Foreign Persons.
retirement plans, for example, section 401(k), section
If you file Form 945, you may also be required to file
403(b), and governmental section 457(b) plans),
Form 945-A, Annual Record of Federal Tax Liability. See
annuities, and IRA distributions;
the
line 7
instructions for details.
Military retirement;
When To File
Gambling winnings;
Indian gaming profits;
For 2018, file Form 945 by January 31, 2019. However, if
Certain government payments on which the recipient
you made deposits on time in full payment of the taxes for
elected voluntary income tax withholding;
the year, you may file the return by February 11, 2019.
Dividends and other distributions by an Alaska Native
Corporation (ANC) on which the recipient elected
If we receive your return after the due date, we will treat
voluntary income tax withholding; and
your return as filed on time if the envelope containing your
-2-
Instructions for Form 945 (2018)
return is properly addressed, contains sufficient postage,
You’re encouraged to file Form 945 electronically. Go
and is postmarked by the U.S. Postal Service on or before
to
IRS.gov/EmploymentEfile
for more information on
the due date, or sent by an IRS-designated private
electronic filing. If you file a paper return, where you file
delivery service (PDS) on or before the due date.
depends on whether you include a payment with Form
However, if you don't follow these guidelines, we will
945. Mail your return to the address listed for your location
consider your return filed when it is actually received.
in the tables that follow.
Where To File
PDSs can't deliver to P.O. boxes. You must use the
U.S. Postal Service to mail an item to a P.O. box address.
The filing address may have changed for your
Go to
IRS.gov/PDS
for the current list of PDSs. For the
return due January 31, 2019; see
Table 1
below
!
IRS mailing address to use if you’re using a PDS, go to
before filing your return. Additionally, the filing
IRS.gov/PDSstreetAddresses. Select the mailing address
CAUTION
addresses have changed for returns filed after June 17,
listed on the webpage that is in the same state as the
2019. If you’re filing your return on or before June 17,
address to which you would mail returns filed without a
2019, use the address provided in Table 1. If you’re filing
payment, as shown in Table 1 or Table 2.
your return after June 17, 2019, use the address provided
in
Table
2.
Table 1. Mailing Addresses for Returns Filed January 1, 2019, Through June 17, 2019
If you’re in . . .
Without a payment . . .
With a payment . . .
Connecticut, Delaware, District of Columbia, Florida, Indiana, Maine,
Department of the Treasury
Internal Revenue Service
Maryland, Massachusetts, New Hampshire, New Jersey, New York,
Internal Revenue Service
P.O. Box 804524
North Carolina, Ohio, Pennsylvania, Rhode Island, South Carolina,
Cincinnati, OH 45999-0042
Cincinnati, OH 45280-4524
Vermont, Virginia, West Virginia
Georgia, Illinois, Kentucky, Michigan, Tennessee, Wisconsin
Department of the Treasury
Internal Revenue Service
Internal Revenue Service
P.O. Box 806534
Kansas City, MO 64999-0058
Cincinnati, OH 45280-6534
Alabama, Alaska, Arizona, Arkansas, California, Colorado, Hawaii,
Department of the Treasury
Internal Revenue Service
Idaho, Iowa, Kansas, Louisiana, Minnesota, Mississippi, Missouri,
Internal Revenue Service
P.O. Box 932300
Montana, Nebraska, Nevada, New Mexico, North Dakota, Oklahoma,
Ogden, UT 84201-0042
Louisville, KY 40293-2300
Oregon, South Dakota, Texas, Utah, Washington, Wyoming
No legal residence or principal place of business in any state
Internal Revenue Service
Internal Revenue Service
P.O. Box 409101
P.O. Box 932300
Ogden, UT 84409
Louisville, KY 40293-2300
Special filing address for exempt organizations; federal, state, and
Department of the Treasury
Internal Revenue Service
local governmental entities; and Indian tribal governmental entities,
Internal Revenue Service
P.O. Box 932300
regardless of location
Ogden, UT 84201-0042
Louisville, KY 40293-2300
Table 2. Mailing Addresses for Returns Filed After June 17, 2019
If you’re in . . .
Without a payment . . .
With a payment . . .
Connecticut, Delaware, District of Columbia, Georgia, Illinois, Indiana,
Department of the Treasury
Internal Revenue Service
Kentucky, Maine, Maryland, Massachusetts, Michigan, New Hampshire,
Internal Revenue Service
P.O. Box 806534
New Jersey, New York, North Carolina, Ohio, Pennsylvania, Rhode
Kansas City, MO 64999-0058
Cincinnati, OH 45280-6534
Island, South Carolina, Tennessee, Vermont, Virginia, West Virginia,
Wisconsin
Alabama, Alaska, Arizona, Arkansas, California, Colorado, Florida,
Department of the Treasury
Internal Revenue Service
Hawaii, Idaho, Iowa, Kansas, Louisiana, Minnesota, Mississippi,
Internal Revenue Service
P.O. Box 932300
Missouri, Montana, Nebraska, Nevada, New Mexico, North Dakota,
Ogden, UT 84201-0042
Louisville, KY 40293-2300
Oklahoma, Oregon, South Dakota, Texas, Utah, Washington, Wyoming
No legal residence or principal place of business in any state
Internal Revenue Service
Internal Revenue Service
P.O. Box 409101
P.O. Box 932300
Ogden, UT 84409
Louisville, KY 40293-2300
Special filing address for exempt organizations; federal, state, and
Department of the Treasury
Internal Revenue Service
local governmental entities; and Indian tribal governmental entities,
Internal Revenue Service
P.O. Box 932300
regardless of location
Ogden, UT 84201-0042
Louisville, KY 40293-2300
-3-
Instructions for Form 945 (2018)
Employer Identification Number (EIN)
penalty may be imposed on all persons who are
determined by the IRS to be responsible for collecting,
If you don't have an EIN, you may apply for one online by
accounting for, or paying over these taxes, and who acted
visiting IRS.gov/EIN. Payers outside of the United States
willfully in not doing so. For more information, see section
may also apply for an EIN by calling 267-941-1099 (toll
11 of Pub. 15.
call).
Voluntary Income Tax Withholding
You may also apply for an EIN by faxing or mailing
Form SS-4 to the IRS. If you haven't received your EIN by
States must allow unemployment compensation
the due date of Form 945, file a paper return and write
recipients to elect to have federal income tax withheld at a
"Applied For" and the date you applied in this entry space.
10% rate. Recipients paid under the Railroad
Unemployment Insurance Act may also elect withholding
If you're filing your tax return electronically, a valid
at a 10% rate.
EIN is required at the time the return is filed. If a
!
valid EIN isn't provided, the return won't be
Recipients of any of the following payments may
CAUTION
accepted. This may result in penalties.
request federal income tax withholding at a rate of 7%,
10%, 12%, or 22%.
Always be sure the EIN on the form you file
Social security and Tier 1 railroad retirement benefits.
exactly matches the EIN the IRS assigned to your
TIP
Certain crop disaster payments.
business. Don't use your social security number
Commodity Credit Corporation loans.
(SSN) or individual taxpayer identification number (ITIN)
Dividends and other distributions by an ANC.
on forms that ask for an EIN. Filing a Form 945 with an
incorrect EIN or using another business's EIN may result
The payee may request voluntary withholding on Form
in penalties and delays in processing your return.
W-4V or you may develop your own substitute form. Any
voluntary withholding on these payments must be
If You Change Your Business Name,
reported on Form 945 (and on the required information
return—Form 1099-DIV, Form 1099-G, Form SSA-1099,
Business Address, or Responsible
or Form RRB-1099) and is subject to the deposit rules.
Party
Additional Information About
Notify the IRS immediately if you change your business
Nonpayroll Payments
name, business address, or responsible party.
Write to the IRS office where you file your returns (using
Pub. 15-A includes information on federal income tax
the Without a payment address under
Where To
File,
withholding from pensions and annuities (section 8), and
earlier) to notify the IRS of any business name change.
Indian gaming profits (section 10).
See Pub. 1635 to see if you need to apply for a new EIN.
The Instructions for Forms 1099-R and 5498 provide
Complete and mail Form 8822-B to notify the IRS of a
information about pensions, annuities, IRAs, and military
business address or responsible party change. Don’t mail
retirement.
Form 8822-B with your Form 945. For a definition of
The Instructions for Forms W-2G and 5754 provide
“responsible party,” see the Instructions for Form SS-4.
information on withholding from gambling winnings.
Part N in the General Instructions for Certain
Penalties and Interest
Information Returns provides information on backup
There are penalties for filing Form 945 late and for paying
withholding.
or depositing taxes late, unless there is reasonable cause.
For more information about dividends and other
See section 11 of Pub. 15 for more information on deposit
distributions by an ANC, see Notice 2013-77, 2013-50
penalties. Interest is charged on taxes paid late at a rate
I.R.B. 632, available at
IRS.gov/irb/
set by law. There are also penalties for failure to file
2013-50_IRB#NOT-2013-77.
information returns (for example, Forms 1099-MISC,
Go to
IRS.gov/EmploymentTaxes
for additional
1099-R, or W-2G) and for failure to furnish payee
information about employment taxes.
statements to payees.
Depositing Withheld Taxes
If you receive a notice about a penalty after you file this
Deposit all nonpayroll (Form 945) withheld federal income
return, reply to the notice with an explanation and we will
tax, including backup withholding, by EFT. Combine all
determine if you meet reasonable-cause criteria. Don't
Form 945 taxes for deposit purposes. Don't combine
attach an explanation when you file your return.
deposits for Forms 941, 943, 944, or Form CT-1 with
deposits for Form 945. Also, don't combine Form 945
Use Form 843 to request abatement of assessed
taxes with taxes for Forms 941, 943, 944, or Form CT-1
penalties or interest. Don't request abatement of
for purposes of determining any of the deposit rules
assessed penalties or interest on Form 945 or Form
discussed next, such as whether the $2,500 threshold is
945-X.
applicable, whether you're a monthly or semiweekly
If taxes that must be withheld (that is, trust fund
schedule depositor, or whether the $100,000 next-day
taxes) aren't withheld or aren't deposited or paid
!
deposit rule applies.
to the United States Treasury, the trust fund
CAUTION
recovery penalty may apply. The penalty is 100% of the
Generally, the deposit rules that apply to Form 941 also
unpaid trust fund tax. If these unpaid taxes can't be
apply to Form 945. However, because Form 945 is an
immediately collected from the employer or business, the
annual return, the rules for determining your deposit
-4-
Instructions for Form 945 (2018)
schedule (discussed below) are different from those for
The name of the person keeping the payroll records
Form 941. See section 11 of Pub. 15 for a detailed
and the address where those records will be kept.
discussion of the deposit rules.
If no sale or transfer occurred, or you don’t know the
If the total amount of tax for 2018 is less than
name of the person to whom the business was sold or
$2,500, you’re not required to make deposits
transferred, that fact should be included in the statement.
TIP
during the year.
Completing Form 945
Determining Your Deposit Schedule
Enter dollars to the left of the preprinted line and cents to
the right of it. Don't round entries to whole dollars. Always
There are two deposit schedules—monthly or
show an amount for cents, even if it is zero.
semiweekly—for determining when you must deposit
Line 1. Federal Income Tax Withheld
withheld federal income tax. These schedules tell you
when a deposit is due after a tax liability arises (that is,
Enter the federal income tax that you withheld (or were
you make a payment subject to federal income tax
required to withhold) from pensions (including
withholding, including backup withholding). Before the
distributions from tax-favored retirement plans, for
beginning of each calendar year, you must determine
example, section 401(k), section 403(b), and
which of the two deposit schedules you must use.
governmental section 457(b) plans), annuities, IRA
For 2019, you're a monthly schedule depositor for Form
distributions, military retirement, Indian gaming profits,
945 if the total tax reported on your 2017 Form 945 (line 3)
and gambling winnings (regular gambling withholding
was $50,000 or less. If the total tax reported for 2017 was
only; backup withholding on gambling winnings is
more than $50,000, you're a semiweekly schedule
reported on line 2). Also enter any voluntary amount that
depositor.
you withheld on certain government payments, and on
dividends and other distributions by an ANC.
If you're a monthly schedule depositor and
accumulate a $100,000 liability or more on any
!
Federal income tax withholding reported on Form
day during a calendar month, your deposit
W-2 must be reported on Form 941, Form 943,
!
CAUTION
schedule changes on the next day to semiweekly for the
Form 944, or Schedule H (Form 1040), as
CAUTION
remainder of the year and for the following year. For more
appropriate.
information, see the $100,000 Next-Day Deposit Rule in
Line 2. Backup Withholding
section 11 of Pub. 15.
Enter any backup withholding that you withheld (or were
Specific Instructions
required to withhold), including backup withholding on
gambling winnings. See part N in the General Instructions
Line A. Final Return
for Certain Information Returns for more information on
backup withholding.
If you go out of business or end operations and you won't
Regulated investment companies (RICs) and real
have to file Form 945 in the future, file a final return. Be
estate investment trusts (REITs) must report any backup
sure to check the box on line A and enter the date that
withholding on Form 945 in the year that the dividends are
final nonpayroll payments were made. Also attach a
actually paid. This includes January payments of
statement to your return showing the name of the person
dividends declared during October, November, and
keeping the payment records and the address where
December of the prior year. See the Instructions for Form
those records will be kept.
1099-DIV for special reporting requirements.
If you sell or transfer your business during the year, you
Line 3. Total Taxes
and the new owner must each file a Form 945 for the year
in which the transfer occurred. Report only the taxes you
Add lines 1 and 2. If total taxes are $2,500 or more, the
withheld.
amount reported on line 3 must equal the total liability for
the year reported on line 7M of the Monthly Summary of
When two businesses merge, the continuing firm must
Federal Tax Liability, or line M of Form 945-A.
file a return for the year in which the change took place
and the other firm should file a final return.
Line 4. Total Deposits
Changing from one form of business to another, such
Enter your total Form 945 deposits for the year, including
as from a sole proprietorship to a partnership or
any overpayment that you applied from filing Form 945-X
corporation, is considered a transfer. If a transfer occurs,
in 2018, and any overpayment that you applied from your
you may need a new EIN. See Pub. 1635 and section 1 of
2017 return.
Pub. 15 for more information.
Line 5. Balance Due
Attach a statement to your return with all the following
If line 3 is more than line 4, enter the difference on line 5.
information.
Otherwise, see Overpayment, later. You don't have to pay
The new owner's name (or the new name of the
if line 5 is under $1. Generally, you should have a balance
business).
due only if your total taxes for the year (line 3) are less
Whether the business is now a sole proprietorship,
than $2,500. If you made payments under the accuracy of
partnership, or corporation.
deposits rule, see section 11 of Pub. 15.
The kind of change that occurred (a sale or transfer).
The date of the change.
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Instructions for Form 945 (2018)
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