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

3. Federal Income Tax Withheld

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

If you are correcting the federal income tax withheld you

interest if you file on time, pay on time, enter the date you

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

discovered the error, and explain the correction on line 7.

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

If you have a credit. You overreported withheld federal

amount you originally reported or as previously corrected.

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

In column 3, enter the difference between columns 1 and

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

during which you filed Form 945-X. The IRS will apply

your credit on the first day of that year. However, the

line 3 (column 1)

credit you show on line 5 of Form 945-X may not be fully

-line 3 (column 2)

available on your Form 945 if the IRS corrects it during

line 3 (column 3)

If the amount in column 2 is larger than

processing or you owe other taxes, penalties, or interest.

the amount in column 1, use a minus sign

The IRS will notify you if your claimed credit changes or if

in column 3.

the amount available as a credit on Form 945 was

reduced because of unpaid taxes, penalties, or interest.

Example —Federal income tax withheld increased.

You reported $9,000 as federal income tax withheld on

Do not check the box on line 1 if you are

line 1 of your 2010 Form 945. In July of 2011, you

correcting overreported amounts and the period

discovered that you had overlooked $1,000 in federal

of limitations on credit or refund for Form 945 will

CAUTION

income tax actually withheld from one of your payees. To

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

correct the error, figure the difference on Form 945-X as

Instead, check the box on line 2. See Is There a Deadline

shown.

for Filing Form 945-X, earlier.

2. Claim

Column 1 (corrected amount)

10,000.00

Column 2 (from line 1 of Form 945)

9,000.00

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

Column 3 (difference)

1,000.00

are correcting overreported amounts only and you are

claiming a refund or abatement for the negative amount

Example —Federal income tax withheld

(credit) shown on line 5. Do not check this box if you are

decreased. You reported $9,600 as federal income tax

correcting any underreported amounts on this form.

withheld on line 1 of your 2010 Form 945. In December

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

of 2011, you discovered that you actually withheld $6,900

and the period of limitations on credit or refund for Form

but reported the higher amount due to a typographical

945 will expire within 90 days of the date you file Form

(administrative) error. To correct the error, figure the

945-X. See Is There a Deadline for Filing Form 945-X,

difference on Form 945-X as shown.

earlier.

The IRS usually processes claims shortly after they

Column 1 (corrected amount)

6,900.00

are filed. IRS will notify you if your claim is denied,

Column 2 (from line 1 of Form 945)

9,600.00

accepted as filed, or selected to be examined. See Pub.

Column 3 (difference)

-2,700.00

556, Examination of Returns, Appeal Rights, and Claims

for Refund, for more information.

Example —Failure to withhold income tax when

required. You were required to withhold $400 of federal

Unless the IRS corrects Form 945-X during processing

income tax from a new payee in December of 2010 but

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

withheld nothing. You discovered the error on March 15,

refund the amount shown on line 5, plus any interest that

2011. You cannot file Form 945-X to correct your 2010

applies.

Form 945 because the error involves a previous year and

Part 2: Enter the Corrections for the

the amount previously reported for the new payee (zero)

represents the actual amount withheld from the new

Calendar Year You Are Correcting

payee during 2010.

Example —Administrative error. You had three

What Amounts Should You Report in Part 2?

payees. In 2010, you withheld $1,000 of federal income

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

tax from payee A, $2,000 from payee B, and $6,000 from

of your payees, not just for those payees whose amounts

payee C. The total amount of federal income tax you

you are correcting.

withheld was $9,000. You mistakenly reported $6,000 on

line 1 of your 2010 Form 945. You discovered the error

If a correction that you report in column 3 includes

on March 16, 2011. This is an example of an

both underreported and overreported amounts (see the

administrative error that may be corrected in a later

instructions for line 6), give us details for each error on

calendar year because the amount actually withheld from

line 7.

payees differs from the amount reported on Form 945.

You may correct federal income tax withholding errors

Use Form 945-X to correct the error. Enter $9,000 in

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

column 1 of line 3 and $6,000 in column 2 of line 3.

agree with the amounts you actually withheld, that is, an

Subtract the amount in column 2 from the amount in

administrative error. See section 13 of Pub. 15 (Circular

column 1.

E) for more information about administrative errors.

Column 1 (corrected amount)

9,000.00

If you previously adjusted or amended Form 945

Column 2 (from line 1 of Form 945)

- 6,000.00

using Form 941c, Form 945-X, Form 843, an

Column 3 (difference)

3,000.00

“amended” Form 945, a “supplemental” Form

CAUTION

945, or because of an IRS examination change, show

Be sure to explain the reasons for this correction on

amounts in column 2 that include those previously

line 7.

reported corrections.

-4-

Instructions for Form 945-X

Instructions For Form 945-X - Adjusted Annual Return Of Withheld Federal Income Tax Or Claim For Refund - 2012 Page 4

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