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

Without a

If amounts that must be withheld are not withheld or

If you are in . . .

payment . . .

With a payment . . .

are not deposited or paid to the United States

Treasury, the trust fund recovery penalty may

CAUTION

Connecticut

New Jersey

Internal Revenue

apply. The penalty is the full amount of any unpaid trust fund

Delaware

New York

Service

tax. This penalty may apply when these unpaid taxes cannot

District of

North Carolina Cincinnati, OH

P.O. Box 1213

Columbia

Ohio

45999-0042

Charlotte, NC

be immediately collected from the employer or business.

Illinois

Pennsylvania

28201-1213

The trust fund recovery penalty may be imposed on all

Indiana

Rhode Island

persons who are determined by the IRS to have been

Kentucky

South Carolina

responsible for collecting, accounting for, and paying over

Maine

Vermont

Maryland

Virginia

these taxes, and who acted willfully in not doing so.

Massachusetts

West Virginia

“Willfully” in this case means voluntarily, consciously, and

Michigan

Wisconsin

intentionally. A responsible person acts willfully if the person

New Hampshire

knows that the required actions are not taking place.

Alabama

Missouri

Internal Revenue

Voluntary income tax withholding. States must allow

Alaska

Montana

Service

Arizona

Nebraska

Ogden, UT

P.O. Box 105153

unemployment compensation recipients to elect to have

Arkansas

Nevada

84201-0042

Atlanta, GA

federal income tax withheld at a 10% rate in 2007.

California

New Mexico

30348-5153

Recipients paid under the Railroad Unemployment

Colorado

North Dakota

Insurance Act may also elect withholding at a 10% rate in

Florida

Oklahoma

Georgia

Oregon

2007.

Hawaii

South Dakota

Idaho

Tennessee

Recipients of any of the following federal payments may

Iowa

Texas

request federal income tax withholding in 2007 at a rate of

Kansas

Utah

7%, 10%, 15%, or 25% on:

Louisiana

Washington

•

Minnesota

Wyoming

Social security and Tier 1 railroad retirement benefits,

Mississippi

•

Certain crop disaster payments, and

•

Commodity Credit Corporation loans.

No legal residence or principal

Internal Revenue

place of business in any state:

Service

P.O. Box 409101

P.O. Box 105288

The payee may request withholding on Form W-4V,

Ogden, UT

Atlanta, GA

Voluntary Withholding Request, or you may develop your

84409

30348-5288

own substitute form. Any voluntary withholding on these

payments must be reported on Form 945 (and on the

Exception for exempt organizations and government

required information return — Form 1099-G, Form

entities. If you are filing Form 945 for an exempt

SSA-1099, or Form RRB-1099) and is subject to the deposit

organization or government entity (federal, state, local, or

rules.

Indian tribal government), use the following addresses,

regardless of your location:

Depositing Withheld Taxes

Return without payment: Ogden, UT 84201-0042.

Deposit all nonpayroll (Form 945) withheld federal income

Return with payment: P.O. Box 105153, Atlanta, GA

tax, including backup withholding, by using the Electronic

30348-5153.

Federal Tax Payment System (EFTPS) or by depositing at

When to file. For 2006, file Form 945 by January 31, 2007.

an authorized institution using Form 8109, Federal Tax

However, if you made deposits on time in full payment of the

Deposit Coupon. Some taxpayers are required to use

taxes for the year, you may file the return by February 12,

EFTPS to deposit their taxes (see Electronic deposit

2007. Your return will be considered timely filed if it is

requirement on page 3). Combine all Form 945 taxes for

properly addressed and mailed First-Class or sent by an

deposit purposes. Do not combine deposits for Forms 941,

IRS-designated private delivery service on or before the due

943, 944, or Form CT-1 with deposits for Form 945. If you

date. See Pub. 15 (Circular E) for more information on

deposit using Form 8109, be sure to darken the space for

IRS-designated private delivery services.

Form “945” on Form 8109.

Employer identification number (EIN). If you do not have

Generally, the deposit rules that apply to Form 941 also

an EIN, you may apply for one online. Go to the IRS website

apply to Form 945. However, because Form 945 is an

at and click on the “Employer

annual return, the rules for determining your deposit

ID Numbers (EINs)” link. You may also apply for an EIN by

schedule (discussed below) are different from those for

calling 1-800-829-4933. Or, you can fax or mail Form SS-4,

Form 941. See section 11 of Pub. 15 (Circular E) for a

Application for Employer Identification Number, to the IRS.

detailed discussion of the deposit rules.

Note. If you are reporting withholding on pension

Determining your deposit schedule. There are two

distributions, be sure to be consistent in using the same

deposit schedules — monthly or semiweekly — for

name and EIN for all reporting and depositing of taxes (for

determining when you must deposit withheld federal income

example, on Forms 945, 1099-R, and 8109/EFTPS). Filing

tax. These schedules tell you when a deposit is due after a

Form 945 with an incorrect name and EIN or failure to use

tax liability arises (that is, you make a payment subject to

the same name and EIN in all reporting and depositing of

federal income tax withholding, including backup

taxes may result in penalties and delays in processing your

withholding). Before the beginning of each calendar year,

return.

you must determine which of the two deposit schedules you

Penalties and interest. There are penalties for filing

must use.

Form 945 late and for paying or depositing taxes late, unless

there is reasonable cause. See section 11 of Pub. 15

For 2007, you are a monthly schedule depositor for

(Circular E) for more information on deposit penalties. There

Form 945 if the total tax reported on your 2005 Form 945

are also penalties for failure to furnish information returns

(line 4) was $50,000 or less. If the total tax reported for 2005

exceeded $50,000, you are a semiweekly schedule

(for example, Forms 1099-MISC, 1099-R, or W-2G) to

payees and failure to file copies with the IRS.

depositor.

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Instructions For Form 945 - Annual Return Of Withheld Federal Income Tax - 2006 Page 2

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