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

Without a

If amounts that must be withheld are not withheld or

If you are in . . .

payment . . .

With a payment . . .

are not deposited or paid to the United States

Treasury, the trust fund recovery penalty may

CAUTION

Connecticut

New Jersey

Department of the

Internal Revenue

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

Delaware

New York

Treasury

Service

tax. This penalty may apply when these unpaid taxes cannot

District of

North Carolina Internal Revenue

P.O. Box 1213

Columbia

Ohio

Service

Charlotte, NC

be immediately collected from the employer or business.

Illinois

Pennsylvania

Cincinnati, OH

28201-1213

The trust fund recovery penalty may be imposed on all

Indiana

Rhode Island

45999-0042

persons who are determined by the IRS to have been

Kentucky

South Carolina

responsible for collecting, accounting for, and paying over

Maine

Vermont

Maryland

Virginia

these taxes, and who acted willfully in not doing so.

Massachusetts

West Virginia

“Willfully” in this case means voluntarily, consciously, and

Michigan

Wisconsin

intentionally. A responsible person acts willfully if the person

New Hampshire

knows that the required actions are not taking place.

Alabama

Missouri

Department of the

Internal Revenue

Voluntary income tax withholding. States must allow

Alaska

Montana

Treasury

Service

unemployment compensation recipients to elect to have

Arizona

Nebraska

Internal Revenue

P.O. Box 105153

federal income tax withheld at a 10% rate in 2008.

Arkansas

Nevada

Service

Atlanta, GA

Recipients paid under the Railroad Unemployment

California

New Mexico

Ogden, UT

30348-5153

Colorado

North Dakota

84201-0042

Insurance Act may also elect withholding at a 10% rate

Florida

Oklahoma

in 2008.

Georgia

Oregon

Hawaii

South Dakota

Recipients of any of the following federal payments may

Idaho

Tennessee

request federal income tax withholding in 2008 at a rate of

Iowa

Texas

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

Kansas

Utah

•

Social security and Tier 1 railroad retirement benefits,

Louisiana

Washington

•

Minnesota

Wyoming

Certain crop disaster payments, and

•

Mississippi

Commodity Credit Corporation loans.

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

No legal residence or principal

Internal Revenue

place of business in any state:

Service

Voluntary Withholding Request, or you may develop your

P.O. Box 409101

P.O. Box 105288

own substitute form. Any voluntary withholding on these

Ogden, UT

Atlanta, GA

payments must be reported on Form 945 (and on the

84409

30348-5288

required information return — Form 1099-G, Form

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

If you are filing Form 945 for an

Department of the

Internal Revenue

exempt organization or

Treasury

Service

deposit rules.

government entity (federal, state, Internal Revenue

P.O. Box 105153

local, or Indian tribal

Service

Atlanta, GA

government), use the following

Ogden, UT

30348-5153

Depositing Withheld Taxes

addresses, regardless of your

84201-0042

Deposit all nonpayroll (Form 945) withheld federal income

location:

tax, including backup withholding, by using EFTPS or by

depositing at an authorized institution using Form 8109,

When to file. For 2007, file Form 945 by January 31, 2008.

Federal Tax Deposit Coupon. Some taxpayers are required

However, if you made deposits on time in full payment of the

to use EFTPS to deposit their taxes (see Electronic deposit

taxes for the year, you may file the return by February 11,

requirement on page 3). Combine all Form 945 taxes for

2008. Your return will be considered timely filed if it is

deposit purposes. Do not combine deposits for Forms 941,

properly addressed and mailed First-Class or sent by an

943, 944, or Form CT-1 with deposits for Form 945. If you

IRS-designated private delivery service on or before the due

deposit using Form 8109, be sure to darken the space for

date. See Pub. 15 (Circular E) for more information on

Form “945” on Form 8109.

IRS-designated private delivery services.

Generally, the deposit rules that apply to Form 941 also

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

Employer identification number (EIN). If you do not have

annual return, the rules for determining your deposit

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

schedule (discussed below) are different from those for

at and click on the Online EIN Application link.

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

You may also apply for an EIN by calling 1-800-829-4933, or

detailed discussion of the deposit rules.

you can fax or mail Form SS-4, Application for Employer

Determining your deposit schedule. There are two

Identification Number, to the IRS.

deposit schedules — monthly or semiweekly — for

determining when you must deposit withheld federal income

Note. If you are reporting withholding on pension

tax. These schedules tell you when a deposit is due after a

distributions, be sure to be consistent in using the same

tax liability arises (that is, you make a payment subject to

name and EIN for all reporting and depositing of taxes (for

federal income tax withholding, including backup

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

withholding). Before the beginning of each calendar year,

Form 945 with an incorrect name and EIN or failure to use

you must determine which of the two deposit schedules you

the same name and EIN in all reporting and depositing of

must use.

taxes may result in penalties and delays in processing your

For 2008, you are a monthly schedule depositor for

return.

Form 945 if the total tax reported on your 2006 Form 945

(line 4) was $50,000 or less. If the total tax reported for 2006

Penalties and interest. There are penalties for filing

exceeded $50,000, you are a semiweekly schedule

Form 945 late and for paying or depositing taxes late, unless

depositor.

there is reasonable cause. See section 11 of Pub. 15

(Circular E) for more information on deposit penalties. There

If you are a monthly schedule depositor and

are also penalties for failure to furnish information returns

accumulate a $100,000 liability or more on any day

(for example, Forms 1099-MISC, 1099-R, or W-2G) to

during a calendar month, your deposit schedule

CAUTION

payees and failure to file copies with the IRS.

changes on the next day to semiweekly for the remainder of

-2-

Instructions For Form 945 - Annual Return Of Withheld Federal Income Tax - 2007 Page 2

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