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

Third-Party Designee

What if you can't pay in full? If you can't pay the full

amount of tax you owe, you can apply for an installment

If you want to allow an employee, a paid tax preparer, or

agreement online.

another person to discuss your Form 945 with the IRS,

You can apply for an installment agreement online if:

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

You can't pay the full amount shown on line 5,

Form 945. Enter the name, phone number, and five-digit

The total amount you owe is $25,000 or less, and

personal identification number (PIN) of the specific person

You can pay the liability in full in 24 months.

to speak with—not the name of the firm that prepared your

return. The designee may choose any five numbers as his

To apply using the Online Payment Agreement

or her PIN.

Application, go to IRS.gov, click on Tools, then click on

Online Payment Agreement.

By checking "Yes," you authorize the IRS to talk to the

Under an installment agreement, you can pay what you

person you named (your designee) about any questions

owe in monthly installments. There are certain conditions

we may have while we process your return. You also

you must meet to enter into and maintain an installment

authorize your designee to do all of the following.

agreement, such as paying the liability within 24 months,

Give us any information that is missing from your return.

and making all required deposits and timely filing tax

Call us for information about the processing of your

returns during the length of the agreement.

return.

Respond to certain IRS notices that you have shared

If your installment agreement is accepted, you will be

with your designee about math errors and return

charged a fee and you will be subject to penalties and

preparation. The IRS won't send notices to your designee.

interest on the amount of tax not paid by the due date of

the return.

You’re not authorizing your designee to bind you to

anything (including additional tax liability) or to otherwise

Line 6. Overpayment

represent you before the IRS. If you want to expand the

If line 4 is more than line 3, enter the difference on line 6.

designee's authorization, see Pub. 947.

Never make an entry on both lines 5 and 6.

The authorization will automatically expire 1 year from

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

If you deposited more than the correct amount for the

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

year, you can have the overpayment refunded or applied

authorization, write to the IRS office for your locality using

to your next return by checking the appropriate box.

the Without a payment address under Where To File,

Check only one box below line 6. If you don't check either

earlier.

box or if you check both boxes, generally we will apply the

overpayment to your account. We may apply your

Who Must Sign (Approved Roles)

overpayment to any past due tax account that is shown in

The following persons are authorized to sign the return for

our records under your EIN. If line 6 is under $1, we will

each type of business entity.

send a refund or apply it to your next return only if you ask

Sole proprietorship—The individual who owns the

us in writing to do so.

business.

Line 7. Monthly Summary of Federal

Corporation (including a limited liability company

Tax Liability

(LLC) treated as a corporation)—The president, vice

president, or other principal officer duly authorized to sign.

This is a summary of your monthly tax liability, not

Partnership (including an LLC treated as a

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

partnership) or unincorporated organization—A

$2,500, don't complete line 7 or Form 945-A.

responsible and duly authorized partner, member, or

CAUTION

officer having knowledge of its affairs.

Complete line 7 only if you were a monthly schedule

Single-member LLC treated as a disregarded entity

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

for federal tax purposes—The owner of the LLC or a

See Determining Your Deposit Schedule, earlier.

principal officer duly authorized to sign.

The amount entered on line 7M must equal the

Trust or estate—The fiduciary.

amount reported on line 3.

Form 945 may also be signed by a duly authorized

agent of the taxpayer if a valid power of attorney has been

CAUTION

filed.

Report your liabilities on Form 945-A instead of on

line 7 if either of the following apply.

Alternative signature method. Corporate officers or

You were a semiweekly schedule depositor

duly authorized agents may sign Form 945 by rubber

during 2016. Don't complete entries A through M of line 7.

stamp, mechanical device, or computer software

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

program. For details and required documentation, see

You were a monthly schedule depositor for 2016 and

Rev. Proc. 2005-39, 2005-28 I.R.B. 82, available at

during any month you accumulated nonpayroll taxes of

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

Paid Preparer Use Only

semiweekly schedule depositor for the remainder of 2016

(and for 2017), you must report your liabilities on Form

A paid preparer must sign Form 945 and provide the

945-A for the entire year. Don't complete entries A through

information in the Paid Preparer Use Only section if the

M of line 7. For more information, see the $100,000

preparer was paid to prepare Form 945 and isn't an

Next-Day Deposit Rule in section 11 of Pub. 15.

employee of the filing entity. Paid preparers must sign

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Instructions for Form 945 (2016)

Instructions For Form 945 - Annual Return Of Withheld Federal Income Tax - 2016 Page 5

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