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

state. If you deposit in the same state as shown in your

administrative error and provide a description of the

address, do not make an entry in this box.

error(s). Do not file Form 941c separately from

Form 945.

Line A —Final return. If you go out of business or end

Reporting adjustments on line 8 or on Form 945-A.

operations and you will not be required to file Form 945 in

The amount of the adjustment(s) also must be taken into

the future, file a final return. Be sure to check the final

account in the Monthly Summary of Federal Tax Liability

return box and enter the date that final nonpayroll

(line 8) or on Form 945-A, Annual Record of Federal Tax

payments were made.

Liability. If the adjustment increases your tax liability,

Line 1 —Federal income tax withheld. Enter the

include the adjustment with any other amount on the

federal income tax that you withheld from pensions

entry space for the date that you discovered the error and

(including distributions from governmental section

increase any required deposit by the adjustment amount.

457(b) plans), annuities, IRA distributions, military

If the adjustment decreases your tax liability, use the

retirement, Indian gaming profits, and gambling winnings

adjustment amount as a credit to offset subsequent

(regular gambling withholding only). Also enter any

liabilities on line 8 or Form 945-A until it is used up. For

voluntary amount that you withheld on certain

more information, see section 13 of Publication 15

government payments. If you are required to report

(Circular E). The Publication 15 instructions for making

federal income tax withholding on Forms 1099 (for

adjustments refer to Form 941 but also apply to

example, Form 1099-R or Form W-2G), you must report

Form 945 adjustments.

the federal income tax withheld on Form 945.

If you are not required to complete line 8 or Form

Note. Federal income tax withholding reported on Form

TIP

945-A because your total taxes are less than

W-2 must be reported on Form 941, Form 943, or

$2,500, do not show adjustments on line 8 or on

Schedule H (Form 1040), as appropriate.

Form 945-A.

Line 2 — Backup withholding. Enter any backup

Line 4 —Total taxes. Add lines 1 and 2 and add or

withholding, including backup withholding on gambling

subtract any net adjustment on line 3. If total taxes are

winnings.

$2,500 or more, the amount reported on line 4 must

Regulated investment companies (RICs) and real

equal the total liability for the year reported on line 8M of

estate investment trusts (REITs) must report any backup

the Monthly Summary of Federal Tax Liability, or line M

withholding on Form 945 in the year that the dividends

of Form 945-A.

are actually paid. This includes January payments of

Line 5 —Total deposits. Enter your total Form 945

dividends declared during October, November, and

deposits for the year, including any overpayment applied

December of the prior year. See the Instructions for

from your 2003 return.

Form 1099-DIV for special reporting requirements.

Line 6 —Balance due. You do not have to pay if line 6

Line 3 — Adjustment to correct administrative errors.

is under $1. You should have a balance due only if your

You cannot make an adjustment on Form 945 to correct

total taxes for the year (line 4) are less than $2,500. If

federal income tax withholding or backup withholding

you made payments made under the accuracy of

reported in a prior calendar year unless it is to correct an

deposits rule, see section 11 of Publication 15

administrative error. An administrative error occurs if

(Circular E). Enter your EIN, “Form 945,” and “2004” on

the amount you entered on Form 945 is not the amount

your check or money order and make it payable to the

that you actually withheld. For example, if the total

“United States Treasury.” If line 4 is $2,500 or more and

federal income tax actually withheld was incorrectly

you deposited all taxes when due, the amount on line 6

reported on Form 945 due to a math or transposition

should be zero.

error, this is an administrative error. The administrative

error adjustment corrects the amount reported on

If you fail to make required deposits (using

Form 945 to agree with the amount actually withheld from

EFTPS or Form 8109, as required) and instead

nonpayroll payments.

pay these amounts with your return, you may be

CAUTION

subject to a penalty.

You must report an adjustment to correct an

Line 7 —Overpayment. If you deposited more than the

administrative error on Form 945 in the year in which you

correct amount for the year, you can have the

discover the error. If the net adjustment is negative

overpayment refunded or applied to your next return by

(reducing your tax liability), enclose the amount reported

checking the appropriate box. The IRS may apply your

on line 3 in parentheses (if possible).

overpayment to any past due tax account under your

You will not be allowed a refund or credit for any prior

EIN. If line 7 is under $1, we will send a refund or apply it

year’s overpayment of federal income tax that you

to your next return only on written request.

withheld from a payee. This is because the payees use

Line 8 —Monthly Summary of Federal Tax Liability.

the amount of withholding shown on the information

return (for example, Form 1099-R) as a credit when filing

This is a summary of your monthly tax liability,

their income tax returns.

not a summary of deposits made. If line 4 is less

If you are making an adjustment(s) to correct a prior

than $2,500, do not complete line 8 or

CAUTION

year administrative error, report the net adjustment

Form 945-A.

(including adjustments to federal income tax withholding

Complete line 8 only if you were a monthly schedule

and backup withholding) on line 3. Complete Form 941c,

depositor for the entire year and line 4 is $2,500 or

Supporting Statement To Correct Information, or an

more. See Determining your deposit schedule on page 2.

equivalent statement, and file it with Form 945 to provide

The amount entered on line 8M must equal the

the required information on the adjustment(s). Be sure to

amount reported on line 4.

identify the adjustment(s) in the Explanation of

CAUTION

Adjustments (Part V of Form 941c) as correcting an

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Instructions For Form 945 - Annual Return Of Withheld Federal Income Tax - 2004 Page 3

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