Looking for a Form 945-x Templates? Download it for free!

When reporting a negative amount in column 3, use a minus

Specific Instructions:

sign instead of parentheses. For example, enter “-10.59”

instead of “(10.59).” However, if you are completing the return

on your computer and your software only allows you to use

Part 1: Select ONLY One Process

parentheses to report negative amounts, you may use them.

How Should You Make Entries on Form 945-X?

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

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

You can help the IRS process your Form 945-X timely and

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

accurately if you follow these guidelines.

•

Do not check both boxes.

Type or print your entries.

•

Use Courier font (if possible) for all typed or

1. Adjusted Return of Withheld Federal Income

computer-generated entries.

Tax

•

Omit dollar signs. You may use commas and decimal points,

Check the box on line 1 if you are correcting underreported

if desired. Enter dollar amounts to the left of any preprinted

amounts or overreported amounts and you would like to use the

decimal point and cents to the right of it

•

adjustment process to correct the errors.

Always show an amount for cents. Do not round entries to

If you are correcting both underreported amounts and

whole dollars.

•

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

Complete both pages and sign Form 945-X on page 2.

•

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

Staple multiple sheets in the upper-left corner.

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

What About Penalties and Interest?

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

Generally, your correction of an underreported amount will not

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

be subject to a failure-to-pay penalty, failure-to-deposit penalty,

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

or interest if you:

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

•

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

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

you discover the error),

error, and explain the correction on line 7.

•

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

If you have a credit. You overreported withheld federal

•

enter the date you discovered the error, and

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

•

explain in detail the grounds and facts relied on to support

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

the correction.

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

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

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

the amounts underreported relate to an issue that was raised in

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

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

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

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

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

a notice and demand for payment after assessment.

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

945 was reduced because of unpaid taxes, penalties, or

Overview of the New Process

interest.

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

The new process for adjusting Form 945 or filing a claim for

overreported amounts and the period of limitations on

refund is outlined below.

credit or refund for Form 945 will expire within 90 days

CAUTION

If you underreported the tax. If you underreported the tax

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

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

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

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

2. Claim

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

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

instructions for line 5 on page 4.

correcting overreported amounts only and you are claiming a

Example — You underreported withheld income taxes:

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

On June 20, 2009, you discover an error that results in

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

additional tax on your 2008 Form 945. File Form 945-X by

underreported amounts on this form.

January 31, 2010 and pay the amount you owe when you file.

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

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

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

attach Form 945-X to your 2009 Form 945.

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

If you overreported the tax. If you overreported the tax

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

actually withheld on a previously filed Form 945, you may

The IRS usually processes claims shortly after they are filed.

choose to:

•

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

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

selected to be examined. Get Publication 556, Examination of

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

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

year during which you file Form 945-X, or

•

information.

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

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

Unless the IRS corrects Form 945-X during processing or

shown on line 5.

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

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

To ensure that the IRS has enough time to process a

TIP

credit for an overreporting adjustment in the year

Part 2: Enter the Corrections for This

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

Year

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

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

overreported amount in December, you may want to file Form

What Amounts Should You Report in Part 2?

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

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

should ensure that the IRS will have enough time to process the

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

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

correcting.

Form 945, thus avoiding an erroneous balance due notice from

the IRS. See the example below.

If a correction that you report in column 3 includes both

underreported and overreported amounts (see the instructions

Example — You want your overreported tax applied as a

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

credit to Form 945: On December 22, 2009, you discover you

overreported your tax on your 2008 Form 945 and want to

You may correct federal income tax withholding errors for

choose the adjustment process. To allow the IRS enough time

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

to process the credit, you file Form 945-X on January 6, 2010.

with the amounts you actually withheld, that is, an

-3-

Instructions For Form 945-X - Adjusted Annual Return Of Withheld Federal Income Tax Or Claim For Refund - Internal Revenue Service - 2009 Page 3

Related Articles

Related forms

Related Categories