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

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Report your liabilities on Form 945-A instead of on

Single member limited liability company (LLC)

line 8 if:

treated as a disregarded entity — The owner of the

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You were a semiweekly schedule depositor

limited liability company (LLC).

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during 2004. Do not complete entries A through M of

Trust or estate — The fiduciary.

line 8. Instead, complete and file Form 945-A with

The return may also be signed by a duly authorized

Form 945.

agent of the taxpayer if a valid power of attorney has

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You were a monthly schedule depositor for 2004

been filed.

and during any month you accumulated nonpayroll taxes

of $100,000 or more. Because this converted you to a

Privacy Act and Paperwork Reduction Act Notice.

semiweekly schedule depositor for the remainder of 2004

We ask for the information on Form 945 to carry out the

(and for 2005), you must report your liabilities on Form

Internal Revenue laws of the United States. We need it to

945-A for the entire year. Do not complete entries A

figure and collect the right amount of tax. Sections 3402,

through M of line 8. For more information, see the

3405, and 3406 of the Internal Revenue Code require

$100,000 Next-Day Deposit Rule in section 11 of

taxpayers to pay over to the IRS federal income tax

Publication 15 (Circular E).

withheld from certain nonpayroll payments and

Third-Party Designee. If you want to allow any

distributions, including backup withholding. Form 945 is

individual, corporation, firm, organization, or partnership

used to determine the amount of the taxes that you owe.

to discuss your 2004 Form 945 with the IRS, check the

Section 6011 requires you to provide the requested

“Yes” box in the Third-Party Designee section of the

information if the tax applies to you. Section 6109

return. Also, enter the name, phone number, and any five

requires you to provide your employer identification

numbers that the designee chooses as his or her

number (EIN). If you fail to provide this information in a

personal identification number (PIN). The authorization

timely manner, you may be subject to penalties and

applies only to the tax form upon which it appears.

interest.

By checking the “Yes” box, you are authorizing the

You are not required to provide the information

IRS to call the designee to answer any questions relating

requested on a form that is subject to the Paperwork

to the information reported on your tax return. You are

Reduction Act unless the form displays a valid OMB

also authorizing the designee to:

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control number. Books or records relating to a form or its

Exchange information concerning your tax return with

instructions must be retained as long as their contents

the IRS and

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may become material in the administration of any Internal

Request and receive written tax return information

Revenue law.

relating to your tax return including copies of specific

Generally, tax returns and return information are

notices, correspondence, and account transcripts.

confidential, as required by section 6103. However,

You are not authorizing the designee to receive any

section 6103 allows or requires the Internal Revenue

refund check, bind you to anything (including additional

Service to disclose or give the information shown on your

tax liability), or otherwise represent you before the IRS. If

tax return to others described in the Code. For example,

you want to expand the designee’s authorization or

we may disclose your tax information to the Department

desire automatic issuances of copies of notices, see

of Justice for civil and criminal litigation, and to cities,

Publication 947, Practice Before the IRS and Power of

states, and the District of Columbia for use in

Attorney.

administering their tax laws. We may also disclose this

The Third-Party Designee authorization is substantially

information to other countries under a tax treaty, or to

equivalent to Form 8821, Tax Information Authorization,

federal and state agencies to enforce federal nontax

but automatically expires one year from the due date

criminal laws and to combat terrorism.

(without regard to extensions) for filing your 2004

The time needed to complete and file Form 945 will

Form 945. If you or your designee desire to terminate the

vary depending on individual circumstances. The

authorization, a written statement conveying your wish to

estimated average time is: Recordkeeping, 7 hr., 9 min.;

revoke the authorization should be submitted to the IRS

Learning about the law or the form, 47 min.; and

service center where the return was processed.

Preparing and sending the form to the IRS, 56 min. If

Who must sign. Form 945 must be signed as follows:

you have comments concerning the accuracy of these

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Sole proprietorship — The individual owning the

time estimates or suggestions for making Form 945

business.

simpler, we would be happy to hear from you. You can

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Corporation (including an LLC treated as a

write to the Internal Revenue Service, Tax Products

corporation) — The president, vice president, or other

Coordinating Committee, SE:W:CAR:MP:T:T:SP, 1111

principal officer.

Constitution Ave. NW, Washington, DC 20224. Do not

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Partnership (including an LLC treated as a

send Form 945 to this address. Instead, see Where to file

partnership) or unincorporated organization — A

on page 1.

responsible and duly authorized member or officer having

knowledge of its affairs.

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Instructions For Form 945 - Annual Return Of Withheld Federal Income Tax - 2004 Page 4

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