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

If amounts that must be withheld are not withheld

2011 exceeded $50,000, you are a semiweekly schedule

or are not deposited or paid to the United States

depositor.

Treasury, the trust fund recovery penalty may

If you are a monthly schedule depositor and

CAUTION

apply. The penalty is the full amount of any unpaid trust

accumulate a $100,000 liability or more on any

fund tax. This penalty may apply when these unpaid taxes

day during a calendar month, your deposit

cannot be immediately collected from the employer or

CAUTION

schedule changes on the next day to semiweekly for the

business. The trust fund recovery penalty may be

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

imposed on all persons who are determined by the IRS to

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

have been responsible for collecting, accounting for, and

section 11 of Pub. 15 (Circular E).

paying over these taxes, and who acted willfully in not

doing so. “Willfully” in this case means voluntarily,

Specific Instructions

consciously, and intentionally. A responsible person acts

willfully if the person knows that the required actions are

not taking place.

Line A. Final Return

Voluntary Income Tax Withholding

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

States must allow unemployment compensation

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

recipients to elect to have federal income tax withheld.

final nonpayroll payments were made.

Recipients paid under the Railroad Unemployment

Line 1. Federal Income Tax Withheld

Insurance Act may also elect withholding.

Enter the federal income tax that you withheld (or were

Recipients of any of the following federal payments

required to withhold) from pensions (including

may request federal income tax withholding.

distributions from tax-favored retirement plans, for

Social security and Tier 1 railroad retirement benefits.

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

Certain crop disaster payments.

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

Commodity Credit Corporation loans.

distributions, military retirement, Indian gaming profits,

The voluntary income tax withholding rates will be

and gambling winnings (regular gambling withholding

available in January 2013 at

only). Also enter any voluntary amount that you withheld

on certain government payments. If you are required to

The payee may request withholding on Form W-4V,

report federal income tax withholding on Forms 1099 (for

Voluntary Withholding Request, or you may develop your

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

own substitute form. Any voluntary withholding on these

you must report the federal income tax withheld on

payments must be reported on Form 945 (and on the

Form 945.

required information return—Form 1099-G, Form

Federal income tax withholding reported on Form

SSA-1099, or Form RRB-1099) and is subject to the

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

deposit rules.

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

CAUTION

appropriate.

Depositing Withheld Taxes

Deposit all nonpayroll (Form 945) withheld federal income

Line 2. Backup Withholding

tax, including backup withholding, by electronic funds

Enter any backup withholding, including backup

transfer. Combine all Form 945 taxes for deposit

withholding on gambling winnings.

purposes. Do not combine deposits for Forms 941, 943,

944, or Form CT-1 with deposits for Form 945.

Regulated investment companies (RICs) and real

estate investment trusts (REITs) must report any backup

Generally, the deposit rules that apply to Form 941 also

withholding on Form 945 in the year that the dividends are

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

actually paid. This includes January payments of

annual return, the rules for determining your deposit

dividends declared during October, November, and

schedule (discussed below) are different from those for

December of the prior year. See the Instructions for Form

Form 941. See section 11 of Pub. 15 (Circular E) for a

1099-DIV for special reporting requirements.

detailed discussion of the deposit rules.

Line 3. Total Taxes

Determining Your Deposit Schedule

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

There are two deposit schedules—monthly or

amount reported on line 3 must equal the total liability for

semiweekly— for determining when you must deposit

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

withheld federal income tax. These schedules tell you

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

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

Return of Federal Tax Liability.

you make a payment subject to federal income tax

withholding, including backup withholding). Before the

Line 4. Total Deposits

beginning of each calendar year, you must determine

Enter your total Form 945 deposits for the year, including

which of the two deposit schedules you must use.

any overpayment that you applied from filing Form 945-X

For 2013, you are a monthly schedule depositor for

and any overpayment that you applied from your 2011

Form 945 if the total tax reported on your 2011 Form 945

return.

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

-3-

Instructions for Form 945 (2012)

Instructions For Form 945 - Annual Return Of Withheld Federal Income Tax - 2012 Page 3

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