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

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Line 7 — Overpayment. If you deposited more than the

Corporation (including an LLC treated as a corporation)

correct amount for the year, you can have the overpayment

— The president, vice president, or other principal officer.

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refunded or applied to your next return by checking the

Partnership (including an LLC treated as a partnership)

appropriate box. The IRS may apply your overpayment to

or unincorporated organization — A responsible and duly

any past due tax account under your EIN. If line 7 is under

authorized member or officer having knowledge of its affairs.

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$1, we will send a refund or apply it to your next return only

Single member limited liability company (LLC) treated

on written request.

as a disregarded entity — The owner of the limited liability

company (LLC).

Line 8 — Monthly Summary of Federal Tax Liability.

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Trust or estate — The fiduciary.

This is a summary of your monthly tax liability, not a

Form 945 may also be signed by a duly authorized agent

summary of deposits made. If line 4 is less than

of the taxpayer if a valid power of attorney has been filed.

$2,500, do not complete line 8 or Form 945-A.

CAUTION

Alternative signature method. Corporate officers or

Complete line 8 only if you were a monthly schedule

duly authorized agents may sign Form 945 by rubber stamp,

depositor for the entire year and line 4 is $2,500 or more.

mechanical device, or computer software program. For

See Determining your deposit schedule on page 2.

details and required documentation, see Rev. Proc.

2005-39. You can find Rev. Proc. 2005-39 on page 82 of

The amount entered on line 8M must equal the

Internal Revenue Bulletin 2005-28 at

amount reported on line 4.

irs-irbs/irb05-28.pdf.

CAUTION

Privacy Act and Paperwork Reduction Act Notice. We

Report your liabilities on Form 945-A instead of on

ask for the information on Form 945 to carry out the Internal

line 8 if:

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Revenue laws of the United States. We need it to figure and

You were a semiweekly schedule depositor

collect the right amount of tax. Sections 3402, 3405, and

during 2007. Do not complete entries A through M of

3406 of the Internal Revenue Code require taxpayers to pay

line 8. Instead, complete and file Form 945-A with

over to the IRS federal income tax withheld from certain

Form 945.

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nonpayroll payments and distributions, including backup

You were a monthly schedule depositor for 2007 and

withholding. Form 945 is used to determine the amount of

during any month you accumulated nonpayroll taxes of

the taxes that you owe. Section 6011 requires you to

$100,000 or more. Because this converted you to a

provide the requested information if the tax applies to you.

semiweekly schedule depositor for the remainder of 2007

Section 6109 requires you to provide your employer

(and for 2008), you must report your liabilities on

identification number (EIN). If you fail to provide this

Form 945-A for the entire year. Do not complete entries A

information in a timely manner, you may be subject to

through M of line 8. For more information, see the $100,000

penalties and interest.

Next-Day Deposit Rule in section 11 of Pub. 15 (Circular E).

Third-Party Designee. If you want to allow any individual,

You are not required to provide the information requested

corporation, firm, organization, or partnership to discuss

on a form that is subject to the Paperwork Reduction Act

your 2007 Form 945 with the IRS, check the “Yes” box in the

unless the form displays a valid OMB control number. Books

Third-Party Designee section of Form 945. Also, enter the

or records relating to a form or its instructions must be

name, phone number, and any five numbers that the

retained as long as their contents may become material in

designee chooses as his or her personal identification

the administration of any Internal Revenue law.

number (PIN). The authorization applies only to the tax form

Generally, tax returns and return information are

upon which it appears.

confidential, as required by section 6103. However, section

By checking the “Yes” box, you are authorizing the IRS to

6103 allows or requires the Internal Revenue Service to

speak with the designee to answer any questions relating to

disclose or give the information shown on your tax return to

the information reported on your tax return. You are also

others described in the Code. For example, we may disclose

authorizing the designee to:

your tax information to the Department of Justice for civil

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Exchange information concerning your tax return with the

and criminal litigation, and to cities, states, and the District of

IRS and

Columbia for use in administering their tax laws. We may

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Request and receive written tax return information relating

also disclose this information to other countries under a tax

to your tax return including copies of specific notices,

treaty, to federal and state agencies to enforce federal

correspondence, and account transcripts.

nontax criminal laws, or to federal law enforcement and

intelligence agencies to combat terrorism.

You are not authorizing the designee to receive any

refund check, bind you to anything (including additional tax

The time needed to complete and file Form 945 will vary

liability), or otherwise represent you before the IRS. If you

depending on individual circumstances. The estimated

want to expand the designee’s authorization or desire

average time is: Recordkeeping, 7 hr., 9 min.; Learning

automatic issuances of copies of notices, see Pub. 947,

about the law or the form, 47 min.; and Preparing and

Practice Before the IRS and Power of Attorney.

sending the form to the IRS, 56 min. If you have

comments concerning the accuracy of these time estimates

The Third-Party Designee authorization is substantially

or suggestions for making Form 945 simpler, we would be

equivalent to Form 8821, Tax Information Authorization, but

happy to hear from you. You can write to the Internal

automatically expires one year from the due date (without

Revenue Service, Tax Products Coordinating Committee,

regard to extensions) for filing your 2007 Form 945. If you or

SE:W:CAR:MP:T:T:SP, 1111 Constitution Ave. NW,

your designee desire to terminate the authorization, a

IR-6526, Washington, DC 20224. Do not send Form 945 to

written statement conveying your wish to revoke the

this address. Instead, see Where to file on page 1.

authorization should be submitted to the IRS service center

where the return was processed. Use the address for Where

to file (without a payment) in the chart on page 2.

Who must sign. Form 945 must be signed as follows:

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Sole proprietorship — The individual who owns the

business.

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Instructions For Form 945 - Annual Return Of Withheld Federal Income Tax - 2007 Page 4

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