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

Where you file depends on whether or not you

information returns (for example, Forms 1099-MISC,

TIP

are including a payment with the return.

1099-R, or W-2G) to payees and failure to file copies with

the IRS.

If amounts that must be withheld are not withheld

or are not deposited or paid to the United States

Connecticut, Delaware, District of Columbia, Illinois,

Treasury, the trust fund recovery penalty may

CAUTION

Indiana, Kentucky, Maine, Maryland, Massachusetts,

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

Michigan, New Hampshire, New Jersey, New York, North

fund tax. This penalty may apply when these unpaid

Carolina, Ohio, Pennsylvania, Rhode Island, South

taxes cannot be immediately collected from the employer

Carolina, Vermont, Virginia, West Virginia, Wisconsin

or business. The trust fund recovery penalty may be

imposed on all persons who are determined by the IRS to

Return without payment:

Return with payment:

have been responsible for collecting, accounting for, and

P.O. Box 105092

paying over these taxes, and who acted willfully in not

Cincinnati, OH 45999-0042

Atlanta, GA 30348-5092

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

consciously, and intentionally. A responsible person acts

Alabama, Alaska, Arizona, Arkansas, California,

willfully if the person knows that the required actions are

Colorado, Florida, Georgia, Hawaii, Idaho, Iowa, Kansas,

not taking place.

Louisiana, Minnesota, Mississippi, Missouri, Montana,

Nebraska, Nevada, New Mexico, North Dakota,

Voluntary income tax withholding. States must allow

Oklahoma, Oregon, South Dakota, Tennessee, Texas,

unemployment compensation recipients to elect to

Utah, Washington, Wyoming

have federal income tax withheld at a 10% rate in 2006.

Recipients paid under the Railroad Unemployment

Return without payment:

Return with payment:

Insurance Act may also elect withholding at a 10% rate

P.O. Box 660443

in 2006.

Ogden, UT 84201-0042

Dallas, TX 75266-0443

Recipients of any of the following federal payments

may request federal income tax withholding in 2006 at a

If you have no legal residence or principal place of

rate of 7%, 10%, 15%, or 25% on:

business in any state –

•

Social security and Tier 1 railroad retirement benefits,

•

Return without payment:

Return with payment:

Certain crop disaster payments, and

•

P.O. Box 80108

Commodity Credit Corporation loans.

Philadelphia, PA 19255-0042

Cincinnati, OH 45280-0008

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

Voluntary Withholding Request, or you may develop your

Exception for exempt organizations and

own substitute form. Any voluntary withholding on these

government entities. If you are filing Form 945 for an

payments must be reported on Form 945 (and on Form

exempt organization or government entity (federal, state,

1099-G) and is subject to the deposit rules.

local, or Indian tribal government), use the following

addresses, regardless of your location:

Depositing Withheld Taxes

Return without payment: Ogden, UT 84201-0042.

Deposit all nonpayroll (Form 945) withheld federal

Return with payment: P.O. Box 660443, Dallas, TX

income tax, including backup withholding, by using the

75266-0443.

Electronic Federal Tax Payment System (EFTPS) or by

When to file. For 2005, file Form 945 by January 31,

depositing at an authorized institution using Form 8109,

2006. However, if you made deposits on time in full

Federal Tax Deposit Coupon. Some taxpayers are

payment of the taxes for the year, you may file the return

required to use EFTPS to deposit their taxes (see

by February 10, 2006. Your return will be considered

Electronic deposit requirement on page 3). Combine all

timely filed if it is properly addressed and mailed

Form 945 taxes for deposit purposes. Do not combine

First-Class or sent by an IRS-designated private delivery

deposits for Forms 941, 943, or CT-1 with deposits for

service on or before the due date. See Pub. 15

Form 945. If you deposit using Form 8109, be sure to

(Circular E) for more information on IRS-designated

darken the space for Form “945” on Form 8109.

private delivery services.

Generally, the deposit rules that apply to Form 941

Employer identification number (EIN). If you do not

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

have an EIN, you may apply for one online. Go to the IRS

an annual return, the rules for determining your deposit

website at and click on the

schedule (discussed below) are different from those for

“Employer ID Numbers (EINs)” link. You may also apply

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

for an EIN by calling 1-800-829-4933. Or, you can fax or

detailed discussion of the deposit rules.

mail Form SS-4, Application for Employer Identification

Number, to the IRS.

Determining your deposit schedule. There are two

deposit schedules —monthly or semiweekly —for

Note. If you are reporting withholding on pension

determining when you must deposit withheld federal

distributions, be sure to be consistent in using the same

income tax. These schedules tell you when a deposit is

name and EIN for all reporting and depositing of taxes

due after a tax liability arises (that is, you make a

(for example, on Forms 945, 1099-R, and 8109/EFTPS).

payment subject to federal income tax withholding,

Filing Form 945 with an incorrect name and EIN or failure

including backup withholding). Before the beginning of

to use the same name and EIN in all reporting and

each calendar year, you must determine which of the two

depositing of taxes may result in penalties and delays in

deposit schedules you must use.

processing your return.

Penalties and interest. There are penalties for filing

For 2006, you are a monthly schedule depositor for

Form 945 late and for paying or depositing taxes late,

Form 945 if the total tax reported on your 2004 Form 945

unless there is reasonable cause. See section 11 of

(line 4) was $50,000 or less. If the total tax reported

Pub. 15 (Circular E) for more information on deposit

for 2004 exceeded $50,000, you are a semiweekly

penalties. There are also penalties for failure to furnish

schedule depositor.

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Instructions For Form 945 - Annual Return Of Withheld Federal Income Tax - 2005 Page 2

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