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If you owe tax. Pay the amount shown on line 5 when you file

File on time (by the due date of Form 945 for the year in

which you discover the error),

Form 945-X. Generally, you will not be charged interest if you

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Pay the amount shown on line 5 when you file Form 945-X,

file on time, pay on time, enter the date you discovered the

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Enter the date you discovered the error, and

error, and explain the correction on line 7.

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Explain in detail the grounds and facts relied on to support

If you have a credit. You overreported withheld federal

the correction.

income tax (you have a negative amount on line 5) and want

the IRS to apply the credit to Form 945 for the year during

No correction will be eligible for interest-free treatment if (a)

the amounts underreported relate to an issue that was raised in

which you filed Form 945-X. The IRS will apply your credit on

the first day of that year. However, the credit you show on line 5

an examination of a prior period, (b) you knowingly

underreported your employment tax liability, or (c) you received

of Form 945-X may not be fully available on your Form 945 if

a notice and demand for payment.

the IRS corrects it during processing or you owe other taxes,

penalties, or interest. The IRS will notify you if your claimed

Overview of the Process

credit changes or if the amount available as a credit on Form

945 was reduced because of unpaid taxes, penalties, or

interest.

The process to file either an adjusted return or a claim for

refund is outlined below.

Do not check the box on line 1 if you are correcting

If you underreported the tax. If you underreported the tax

overreported amounts and the period of limitations on

actually withheld on a previously filed Form 945, check the box

credit or refund for Form 945 will expire within 90 days

CAUTION

on line 1 and pay any additional amount you owe when you file

of the date you file Form 945-X. Instead, check the box on line

Form 945-X. For details on how to make a payment, see the

2. See Is There a Deadline for Filing Form 945-X? on page 2.

instructions for line 5 on page 4.

2. Claim

Example — You underreported withheld income taxes:

Check the box on line 2 to use the claim process if you are

On June 20, 2010, you discover an error that results in

correcting overreported amounts only and you are claiming a

additional tax on your 2009 Form 945. File Form 945-X by

refund or abatement for the negative amount (credit) shown on

January 31, 2011, and pay the amount you owe when you file.

line 5. Do not check this box if you are correcting ANY

See When Should You File Form 945-X? on page 1. Do not

underreported amounts on this form.

attach Form 945-X to your 2010 Form 945.

You must check the box on line 2 if you have a credit and

If you overreported the tax. If you overreported the tax

the period of limitations on credit or refund for Form 945 will

actually withheld on a previously filed Form 945, you may

expire within 90 days of the date you file Form 945-X. See Is

choose one of the following options.

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There a Deadline for Filing Form 945-X? on page 2.

Use the adjustment process. Check the box on line 1 to apply

any credit (negative amount) from line 5 to Form 945 for the

The IRS usually processes claims shortly after they are filed.

year during which you file Form 945-X.

IRS will notify you if your claim is denied, accepted as filed, or

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Use the claim process. Check the box on line 2 to file a claim

selected to be examined. See Publication 556, Examination of

on Form 945-X requesting a refund or abatement of the amount

Returns, Appeal Rights, and Claims for Refund, for more

shown on line 5.

information.

To ensure that the IRS has enough time to process a

Unless the IRS corrects Form 945-X during processing or

credit for an overreporting adjustment in the year

you owe other taxes, penalties, or interest, IRS will refund the

TIP

during which you file Form 945-X, you are encouraged

amount shown on line 5, plus any interest that applies.

to file Form 945-X correcting the overreported amount in the

Part 2: Enter the Corrections for This

first 11 months of a year. For example, if you discover an

overreported amount in December, you may want to file Form

Year

945-X during the first 11 months of the next year. This should

ensure that the IRS will have enough time to process Form

945-X so the credit will be posted before you file Form 945, thus

What Amounts Should You Report in Part 2?

avoiding an erroneous balance due notice from the IRS. See

In columns 1 and 2 of lines 3 and 4, show amounts for all of

the example below.

your payees, not just for those payees whose amounts you are

Example — You want your overreported tax applied as a

correcting.

credit to Form 945: On December 22, 2010, you discover you

If a correction that you report in column 3 includes both

overreported your tax on your 2009 Form 945 and want to

underreported and overreported amounts (see the instructions

choose the adjustment process. To allow the IRS enough time

for line 6), give us details for each error on line 7.

to process the credit, you file Form 945-X on January 6, 2011.

You may correct federal income tax withholding errors for

prior years if the amounts shown on Form 945 do not agree

Specific Instructions:

with the amounts you actually withheld, that is, an

administrative error. See section 13 of Pub. 15 (Circular E) for

more information about administrative errors.

Part 1: Select ONLY One Process

If you previously adjusted or amended Form 945 using

Form 941c, Form 945-X, Form 843, an “amended” Form

Because Form 945-X may be used to file either an adjusted

945, a “supplemental” Form 945, or because of an IRS

return of withheld federal income tax or a claim for refund or

CAUTION

examination change, show amounts in column 2 that include

abatement, you must check one box on either line 1 or line 2.

those previously reported corrections.

Do not check both boxes.

3. Federal Income Tax Withheld

1. Adjusted Return of Withheld Federal Income

Tax

If you are correcting the federal income tax withheld you

reported on line 1 of Form 945, enter the total corrected amount

Check the box on line 1 if you are correcting underreported

for all payees in column 1. In column 2, enter the amount you

amounts or overreported amounts and you would like to use the

originally reported or as previously corrected. In column 3, enter

adjustment process to correct the errors.

the difference between columns 1 and 2.

If you are correcting both underreported amounts and

overreported amounts on this form, you must check this box. If

line 3 (column 1)

you check this box, any negative amount shown on line 5 will

-line 3 (column 2)

be applied as a credit (tax deposit) to your Form 945 for the

line 3 (column 3)

If the amount in column 2 is larger than the

year in which you are filing this form. See Example — You want

amount in column 1, use a minus sign in

your overreported tax applied as a credit to Form 945 above.

column 3.

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Instructions for Form 945-X

Form 945-X - Instructions For Adjusted Annual Return Of Withheld Federal Income Tax Or Claim For Refund - Department Of The Treasury - 2011 Page 3

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