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

Depositing Withheld Taxes

you withheld on certain government payments, and on

dividends and other distributions by an ANC.

Deposit all nonpayroll (Form 945) withheld federal income

Federal income tax withholding reported on Form

tax, including backup withholding, by EFT. Combine all

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

Form 945 taxes for deposit purposes. Don't combine

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

deposits for Forms 941, 943, 944, or Form CT-1 with

CAUTION

appropriate.

deposits for Form 945.

Line 2. Backup Withholding

Generally, the deposit rules that apply to Form 941 also

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

Enter any backup withholding that you withheld (or were

annual return, the rules for determining your deposit

required to withhold), including backup withholding on

schedule (discussed below) are different from those for

gambling winnings. See part N in the General Instructions

Form 941. See section 11 of Pub. 15 for a detailed

for Certain Information Returns for more information on

discussion of the deposit rules.

backup withholding.

If the total amount of tax for 2016 is less than

Regulated investment companies (RICs) and real

$2,500, you’re not required to make deposits

TIP

estate investment trusts (REITs) must report any backup

during the year.

withholding on Form 945 in the year that the dividends are

actually paid. This includes January payments of

Determining Your Deposit Schedule

dividends declared during October, November, and

There are two deposit schedules—monthly or

December of the prior year. See the Instructions for Form

semiweekly— for determining when you must deposit

1099-DIV for special reporting requirements.

withheld federal income tax. These schedules tell you

Line 3. Total Taxes

when a deposit is due after a tax liability arises (that is,

you make a payment subject to federal income tax

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

withholding, including backup withholding). Before the

amount reported on line 3 must equal the total liability for

beginning of each calendar year, you must determine

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

which of the two deposit schedules you must use.

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

Record of Federal Tax Liability.

For 2017, you're a monthly schedule depositor for Form

Line 4. Total Deposits

945 if the total tax reported on your 2015 Form 945 (line 3)

was $50,000 or less. If the total tax reported for 2015 was

Enter your total Form 945 deposits for the year, including

more than $50,000, you're a semiweekly schedule

any overpayment that you applied from filing Form 945-X

depositor.

and any overpayment that you applied from your 2015

return.

If you're a monthly schedule depositor and

accumulate a $100,000 liability or more on any

Line 5. Balance Due

day during a calendar month, your deposit

CAUTION

If line 3 is more than line 4, enter the difference on line 5.

schedule changes on the next day to semiweekly for the

Otherwise, see Overpayment, later. You don't have to pay

remainder of the year and for the following year. For more

if line 5 is under $1. Generally, you should have a balance

information, see the $100,000 Next-Day Deposit Rule in

due only if your total taxes for the year (line 3) are less

section 11 of Pub. 15.

than $2,500. If you made payments under the accuracy of

deposits rule, see section 11 of Pub. 15.

Specific Instructions

If you were required to make federal tax deposits, pay

the amount shown on line 5 by EFT. If you weren't

Line A. Final Return

required to make federal tax deposits, you may pay the

If you go out of business or end operations and you won't

amount shown on line 5 by EFT, credit card, debit card,

have to file Form 945 in the future, file a final return. Be

check, money order, or EFW. For more information on

sure to check the box on line A and enter the date that

electronic payment options, visit the IRS website at

final nonpayroll payments were made. Also attach a

statement to your return showing the name of the person

If you pay by EFT, credit card, or debit card, file your

keeping the payment records and the address where

return using the Without a payment address under Where

those records will be kept.

To File, earlier. Don't file Form 945-V, Payment Voucher.

Line 1. Federal Income Tax Withheld

If you pay by check or money order, make it payable to

“United States Treasury.” Enter your EIN, “Form 945,” and

Enter the federal income tax that you withheld (or were

the tax period on your check or money order. Complete

required to withhold) from pensions (including

Form 945-V and enclose with Form 945.

distributions from tax-favored retirement plans, for

example, section 401(k), section 403(b), and

If line 3 is $2,500 or more and you deposited all taxes

governmental section 457(b) plans), annuities, IRA

when due, the amount on line 5 should be zero.

distributions, military retirement, Indian gaming profits,

If you didn't make deposits as required and

and gambling winnings (regular gambling withholding

instead pay the taxes with Form 945, you may be

only; backup withholding on gambling winnings is

subject to a penalty.

reported on line 2). Also enter any voluntary amount that

CAUTION

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Instructions for Form 945 (2016)

Instructions For Form 945 - Annual Return Of Withheld Federal Income Tax - 2016 Page 4

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