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

Read the instructions for line 3 for more information on

TIP

more information about administrative errors.

completing line 4. For correction purposes, there is no

distinction between federal income tax withheld from

If you previously adjusted or amended Form 945 using

pensions, annuities, IRAs, gambling winnings, etc. and backup

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

withholding.

945, by filing a “supplemental” Form 945, or because of

CAUTION

5. Total

an IRS examination change, show amounts in column 2 that

include those previously reported corrections.

Combine the amounts from lines 3 and 4 of column 4. Enter the

result on line 5.

3. Federal Income Tax Withheld

Your credit. If the amount entered on line 5 is less than zero,

If you are correcting the federal income tax withheld you

for example, “-115.00,” you have a credit because you

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

overreported your withheld federal income tax.

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

•

If you checked the box on line 1, include this amount on line

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

4 (“Total deposits”) of Form 945 for the year during which you

the difference between columns 1 and 2.

file Form 945-X. Do not make changes to your Monthly

Summary of Federal Tax Liability on Form 945 or on Form

line 3 (column 1)

945-A. The amounts reported on the record should reflect your

-line 3 (column 2)

actual tax liability for the period.

line 3 (column 3)

If the amount in column 2 is larger than the

•

If you checked the box on line 2, you are filing a claim for

amount in column 1, use a minus sign in

column 3.

refund or abatement of the amount shown.

Example — Federal income tax withheld increased: You

If your credit is less than $1, we will send a refund or apply it

reported $9,000 as federal income tax withheld on line 1 of your

only if you ask us in writing to do so.

2008 Form 945. In July of 2009, you discovered that you had

Amount you owe. You must pay the amount you owe when

overlooked $1,000 in federal income tax actually withheld from

you file Form 945-X. You may not use any credit that you show

one of your payees. To correct the error, figure the difference

on another Form 945-X to pay for the amount you owe, even if

on Form 945-X as shown.

you filed for the amount you owe and the credit at the same

time. You may pay the amount you owe on line 5 electronically

Column 1 (corrected amount)

10,000.00

using the Electronic Federal Tax Payment System (EFTPS), by

Column 2 (from line 1 of Form 945)

9,000.00

credit card, or by check or money order.

Column 3 (difference)

1,000.00

•

The preferred method of payment is EFTPS. For information,

Example — Federal income tax withheld decreased:

visit or call EFTPS Customer Service at

You reported $9,600 as federal income tax withheld on line 1 of

1-800-555-4477 toll free, or get Pub. 966, The Secure Way to

your 2007 Form 945. In December of 2009, you discovered that

Pay Your Federal Taxes.

you actually withheld $6,900 but reported the higher amount

•

To pay by credit card, visit the IRS website at

due to a typographical (administrative) error. To correct the

and click on the electronic IRS link.

error, figure the difference on Form 945-X as shown.

•

If you pay by check or money order, make it payable to

“United States Treasury.” On your check or money order, be

Column 1 (corrected amount)

6,900.00

sure to write your EIN, “Form 945-X,” and the year corrected.

Column 2 (from line 1 of Form 945)

9,600.00

Column 3 (difference)

-2,700.00

Do not use a federal tax deposit coupon (Form 8109 or

Example — Failure to withhold income tax when

Form 8109-B) to make your payment with Form 945 – X.

required: You were required to withhold $400 of federal

CAUTION

income tax from a new payee in December of 2008 but withheld

You do not have to pay if the amount you owe is less than

nothing. You discovered the error on March 15, 2009. You

$1.

cannot file Form 945-X to correct your 2008 Form 945 because

Previously assessed FTD penalty. If line 5 reflects

the error involves a previous year and the amount previously

overreported tax and the IRS previously assessed a

reported for the new payee (zero) represents the actual amount

failure-to-deposit (FTD) penalty, you may be able to reduce the

withheld from the new payee during 2008.

penalty. For more information, see the instructions for Form

Example — Administrative error: You had three payees.

945-A.

In 2008, you withheld $1,000 of federal income tax from payee

A, $2,000 from payee B, and $6,000 from payee C. The total

Part 3: Explain Your Corrections for This

amount of federal income tax you withheld was $9,000. You

mistakenly reported $6,000 on line 1 of your 2008 Form 945.

Year

You discovered the error on March 16, 2009. This is an

example of an administrative error that may be corrected in a

6. Correcting Both Underreported and

later calendar year because the amount actually withheld from

Overreported Amounts

payees differs from the amount reported on Form 945. Use

Form 945-X to correct the error. Enter $9,000 in column 1 of

Check the box on line 6 if any corrections you entered on line 3

line 3 and $6,000 in column 2 of line 3. Subtract the amount in

or line 4 in column 3 reflect both underreported and

column 2 from the amount in column 1.

overreported amounts.

Example: If you had an increase to withheld income tax of

Column 1 (corrected amount)

9,000.00

$15,000 for payee A and a decrease to withheld income tax of

Column 2 (from line 1 of Form 945)

- 6,000.00

$5,000 for payee B, you would enter $10,000 on line 3, column

Column 3 (difference)

3,000.00

3. That $10,000 represents the net change from corrections.

Be sure to explain the reasons for this correction on line 7.

On line 7, you must explain the reason for both the $15,000

increase and the $5,000 decrease.

4. Backup Withholding

7. Explain Your Corrections

If you are correcting the backup withholding of federal income

tax you reported on line 2 of Form 945, enter the total corrected

Treasury regulations require you to explain in detail the grounds

amount in column 1. In column 2, enter the amount you

and facts relied upon to support each correction. On line 7,

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

describe in detail each correction you entered in column 3 on

the difference between columns 1 and 2.

lines 3 and 4. If you need more space, attach additional sheets,

but be sure to write your name, EIN, and calendar year on the

line 4 (column 1)

top of each sheet.

-line 4 (column 2)

You must describe the events that caused the underreported

line 4 (column 3)

If the amount in column 2 is larger than the

or overreported withheld income tax or backup withholding. An

amount in column 1, use a minus sign in

explanation such as “withheld income tax was overstated” is

column 3.

-4-

Instructions For Form 945-X - Adjusted Annual Return Of Withheld Federal Income Tax Or Claim For Refund - Internal Revenue Service - 2009 Page 4

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