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

Line 7. Monthly Summary of Federal

only). Also enter any voluntary amount that you withheld

on certain government payments. If you are required to

Tax Liability

report federal income tax withholding on Forms 1099 (for

example, Form 1099-R or 1099-MISC) or Form W-2G,

This is a summary of your monthly tax liability, not

you must report the federal income tax withheld on

a summary of deposits made. If line 3 is less than

Form 945.

$2,500, do not complete line 7 or Form 945-A.

CAUTION

Complete line 7 only if you were a monthly schedule

Federal income tax withholding reported on Form

depositor for the entire year and line 3 is $2,500 or

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

more. See Determining Your Deposit Schedule, earlier.

Form 944, or Schedule H (Form 1040), as

CAUTION

appropriate.

The amount entered on line 7M must equal the

amount reported on line 3.

Line 2. Backup Withholding

CAUTION

Report your liabilities on Form 945-A instead of on

Enter any backup withholding, including backup

line 7 if either of the following apply.

withholding on gambling winnings.

•

You were a semiweekly schedule depositor

during 2011. Do not complete entries A through M of

Regulated investment companies (RICs) and real

line 7. Instead, complete and file Form 945-A with

estate investment trusts (REITs) must report any backup

Form 945.

withholding on Form 945 in the year that the dividends

•

You were a monthly schedule depositor for 2011

are actually paid. This includes January payments of

and during any month you accumulated nonpayroll taxes

dividends declared during October, November, and

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

December of the prior year. See the Instructions for Form

semiweekly schedule depositor for the remainder of 2011

1099-DIV for special reporting requirements.

(and for 2012), you must report your liabilities on Form

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

Line 3. Total Taxes

through M of line 7. For more information, see the

$100,000 Next-Day Deposit Rule in section 11 of Pub. 15

Add lines 1 and 2. If total taxes are $2,500 or more, the

(Circular E).

amount reported on line 3 must equal the total liability for

the year reported on line 7M of the Monthly Summary of

Third-Party Designee

Federal Tax Liability, or line M of Form 945-A.

If you want to allow any individual, corporation, firm,

organization, or partnership to discuss your 2011 Form

Line 4. Total Deposits

945 with the IRS, check the “Yes” box in the Third-Party

Enter your total Form 945 deposits for the year, including

Designee section of Form 945. Also, enter the name,

any overpayment that you applied from filing Form 945-X

phone number, and any five-digit personal identification

and any overpayment that you applied from your 2010

number (PIN) for the specific person to speak with — not

return.

the name of the firm who prepared your return.

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

Line 5. Balance Due

IRS to speak with the designee to answer any questions

relating to the information reported on your tax return.

You do not have to pay if line 5 is under $1. Generally,

You are also authorizing the designee to:

you should have a balance due only if your total taxes for

•

Give the IRS any information that is missing from your

the year (line 3) are less than $2,500. If you made

return,

payments under the accuracy of deposits rule, see

•

Call the IRS for information about the processing of

section 11 of Pub. 15 (Circular E). Enter your EIN, “Form

your return or the status of your refund or payments,

945,” and “2011” on your check or money order and

•

Receive copies of notices or transcripts related to your

make it payable to the “United States Treasury.”

return upon request, and

Complete Form 945-V, Payment Voucher, if you are

•

Respond to certain IRS notices about math errors,

making a payment with Form 945. If line 3 is $2,500 or

offsets, and return preparation.

more and you deposited all taxes when due, the amount

You are not authorizing the designee to receive any

on line 5 should be zero.

refund check, bind you to anything (including additional

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

If you did not make required deposits (by

you want to expand the designee’s authorization, see

electronic funds transfer) and instead pay these

Pub. 947, Practice Before the IRS and Power of Attorney.

amounts with your return, you may be subject to a

CAUTION

The authorization will automatically expire 1 year from

penalty.

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

2011 Form 945. If you or your designee wants to

Line 6. Overpayment

terminate the authorization, write to the IRS office for

your locality using the address for Where to File (Without

If you deposited more than the correct amount for the

a payment), in the chart earlier.

year, you can have the overpayment refunded or applied

to your next return by checking the appropriate box. The

Who Must Sign

IRS may apply your overpayment to any past due tax

account under your EIN. If line 6 is under $1, we will send

Form 945 must be signed as follows:

•

Sole proprietorship — The individual who owns the

a refund or apply it to your next return only on written

request.

business.

-4-

Instructions for Form 945 (2011)

Instructions For Form 945 - Annual Return Of Withheld Federal Income Tax - 2011 Page 4

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