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

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Line 8 —Monthly Summary of Federal Tax Liability.

Corporation – The president, vice president, or other

principal officer.

This is a summary of your monthly tax liability,

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Partnership or unincorporated organization – A

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

responsible and duly authorized member or officer having

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

CAUTION

knowledge of its affairs.

945-A.

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Trust or estate – The fiduciary.

Complete line 8 if you were a monthly schedule

The return may also be signed by a duly authorized

depositor for the entire year. (See Determining your

agent of the taxpayer if a valid power of attorney has

deposit schedule on page 2).

been filed.

Report your liabilities on Form 945-A instead of on

line 8 if:

Privacy Act and Paperwork Reduction Act Notice.

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You were a semiweekly schedule depositor during

We ask for the information on this form to carry out the

2002. Do not complete entries A through M of line 8.

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

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

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

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You were a monthly schedule depositor for 2002

3405, and 3406 of the Internal Revenue Code require

and during any month you accumulated nonpayroll taxes

taxpayers to pay over to the IRS income tax withheld

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

from certain nonpayroll payments and distributions,

semiweekly schedule depositor for the remainder of 2002

including backup withholding. This form is used to

(and for 2003), you must report your liabilities on Form

determine the amount of the taxes that you owe. Section

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

6011 requires you to provide the requested information if

through M of line 8. (See section 11 of Circular E (Pub.

the tax applies to you. Section 6109 requires you to

15) for more information on the $100,000 next-day

provide your employer identification number. If you fail to

deposit rule.)

provide this information in a timely manner, you may be

Third party designee. If you want to allow an employee

subject to penalties and interest.

of your business or an individual paid preparer to discuss

You are not required to provide the information

your 2002 Form 945 with the IRS, check the “Yes” box in

requested on a form that is subject to the Paperwork

the “Third Party Designee” section of the return. Also,

Reduction Act unless the form displays a valid OMB

enter the name, phone number, and any five numbers

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

the designee chooses as his or her personal identification

instructions must be retained as long as their contents

number (PIN). The designation must specify an individual

may become material in the administration of any Internal

and may not refer to your payroll office or a tax

Revenue law.

preparation firm.

Generally, tax returns and return information are

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

confidential, as required by section 6103. However,

IRS to call the designated employee or paid preparer to

section 6103 allows or requires the Internal Revenue

answer any questions that may arise during the

Service to disclose or give the information shown on your

processing of your return. You are also authorizing the

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

designee to:

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we may disclose your tax information to the Department

Give the IRS any information that is missing from your

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

return,

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states, and the District of Columbia for use in

Call the IRS for information about the processing of

administering their tax laws. We may also disclose the

your return or the status of your refund or payment(s),

information to other countries under a tax treaty, or to

and

Federal and state agencies to enforce Federal nontax

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Respond to certain IRS notices that you have shared

criminal laws and to combat terrorism.

with the designee about math errors and return

The time needed to complete and file this form will

preparation. (The notices will not be sent to the

vary depending on individual circumstances. The

designee.)

estimated average time is: Recordkeeping, 6 hr., 55

You are not authorizing the designee to receive any

min.; Learning about the law or the form, 35 min.; and

refund check, bind you to anything (including additional

Preparing and sending the form to the IRS, 43 min. If

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

you have comments concerning the accuracy of these

you want to expand the designee’s authorization, see

time estimates or suggestions for making this form

Pub. 947, Practice Before the IRS and Power of

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

Attorney.

write to the Tax Forms Committee, Western Area

The designee authorization cannot be revoked.

Distribution Center, Rancho Cordova, CA 95743-0001.

However, the authorization will automatically expire on

Do not send the tax form to this address. Instead, see

the due date (without regard to extensions) for filing your

Where to file on page 1.

2003 Form 945.

Signature. Form 945 must be signed as follows:

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Sole proprietorship – The individual owning the

business.

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Instructions For Form 945 - Annual Return Of Withheld Federal Income Tax - 2002 Page 4

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