945-A Annual Record of Federal Tax Liability

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I.R.S. SPECIFICATIONS

TO BE REMOVED BEFORE PRINTING

INSTRUCTIONS TO PRINTERS
FORM 945-A, PAGE 1 of 3
MARGINS: TOP 13 mm (1⁄2 "), CENTER SIDES.
PAPER: WHITE WRITING, SUB. 20.
FLAT SIZE: 216 mm (81⁄2 ")  279 mm (11")
PERFORATE: (NONE)

Date

Action

945-A

Revised proofs
requested

Annual Record of Federal Tax Liability

OMB No. 1545-1430

(Rev. September 2006)
Department of the Treasury
Internal Revenue Service

䊳

File with Form 945, CT-1, 944, or Form 944-SS.

Name (as shown on Form 945, CT-1, 944, or Form 944-SS)

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16

January Tax Liability
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31

A Total for month

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16

䊳

April Tax Liability
17
18
19
20
21
22
23
24
25
26
27
28
29
30

D Total for month

䊳

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16

Employer identification number (EIN)

February Tax Liability
17
18
19
20
21
22
23
24
25
26
27
28
29

B Total for month

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16

Signature

O.K. to print

PRINTS: HEAD TO HEAD
INK: BLACK

DO NOT PRINT — DO NOT PRINT — DO NOT PRINT — DO NOT PRINT

Form

Date

䊳

May Tax Liability
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31

E Total for month

䊳

Cat. No. 14733M

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16

March Tax Liability
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31

C Total for month

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16

䊳

June Tax Liability
17
18
19
20
21
22
23
24
25
26
27
28
29
30

F Total for month

䊳

Form 945-A (Rev. 9-2006)

3
I.R.S. SPECIFICATIONS

TO BE REMOVED BEFORE PRINTING

INSTRUCTIONS TO PRINTERS
FORM 945-A, PAGE 2 of 3
MARGINS: TOP 13 mm (1⁄2 "), CENTER SIDES.
PAPER: WHITE WRITING, SUB. 20.
FLAT SIZE: 216 mm (81⁄2 ")  279 mm (11")
PERFORATE: (NONE)

PRINTS: HEAD TO HEAD
INK: BLACK

DO NOT PRINT — DO NOT PRINT — DO NOT PRINT — DO NOT PRINT

Form 945-A (Rev. 9-2006)

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16

July Tax Liability
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31

G Total for month

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16

䊳

October Tax Liability
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31

J Total for month

䊳

Page

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16

August Tax Liability
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31

H Total for month

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16

䊳

November Tax Liability
17
18
19
20
21
22
23
24
25
26
27
28
29
30

K Total for month

䊳

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16

I Total for month

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16

2

September Tax Liability
17
18
19
20
21
22
23
24
25
26
27
28
29
30

䊳

December Tax Liability
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31

L Total for month

䊳

M Total tax liability for the year (add lines A through L). This should equal line 4 on Form 945 (line 13
䊳
on Form CT-1, line 9 on Form 944, or line 7 on Form 944-SS.)
Form 945-A (Rev. 9-2006)

3
I.R.S. SPECIFICATIONS

TO BE REMOVED BEFORE PRINTING

INSTRUCTIONS TO PRINTERS
FORM 945-A, PAGE 3 of 3
MARGINS: TOP 13 mm (1⁄2 "), CENTER SIDES.
PAPER: WHITE WRITING, SUB. 20.
FLAT SIZE: 216 mm (81⁄2 ")  279 mm (11")
PERFORATE: (NONE)

PRINTS: HEAD TO HEAD
INK: BLACK

DO NOT PRINT — DO NOT PRINT — DO NOT PRINT — DO NOT PRINT

Form 945-A (Rev. 9-2006)

General Instructions
Purpose of form. Use Form 945-A to report your federal tax liability
(based on the dates payments were made or wages were paid) for the
following tax returns.
● Form 945, Annual Return of Withheld Federal Income Tax, for federal
income tax withholding on nonpayroll payments. Nonpayroll withholding
includes backup withholding and federal income tax withholding on
pensions, annuities, IRAs, Indian Gaming profits, gambling winnings, and
military retirement.
● Form CT-1, Employer’s Annual Railroad Retirement Tax Return, for
withheld Tier I and Tier II taxes.
● Form 944, Employer’s ANNUAL Federal Tax Return, for federal income
tax withheld and social security and Medicare taxes.
● Form 944-SS, Employer’s ANNUAL Federal Tax Return for American
Samoa, Guam, the Commonwealth of the Northern Mariana Islands, and
the U.S. Virgin Islands, for social security and Medicare taxes.
Note. Form 945-A is a report of your tax liability, not a summary of
deposits made. The IRS gets deposit data from Form 8109, Federal Tax
Deposit Coupon, or from the Electronic Federal Tax Payment System
(EFTPS). Do not file Form 945-A if your tax liability for the return period is
less than $2,500.
Forms 944-PR and 944(SP). If you are a semiweekly schedule depositor
who files Forma 944-PR, Planilla para la Declaración Federal ANUAL del
Patrono, or Forma 944(SP), Declaración Federal ANUAL de Impuestos del
Patrono o Empleador, you should use Forma 943A-PR, Registro de la
Obligación Contributiva Federal del Patrono Agrícola, to report your tax
liability.
Who must file. Semiweekly schedule depositors are required to complete
and file Form 945-A with their tax return (Form 945, CT-1, 944, or
944-SS). Do not complete this form if you are a monthly schedule
depositor, unless you accumulated a tax liability of $100,000 during any
month of the year. Monthly schedule depositors who accumulate
$100,000 become semiweekly schedule depositors for the remainder of
the year (and the next year) and must complete Form 945-A for the entire
year. The deposit rules, including the $100,000 Next-Day Deposit Rule,
are explained in section 11 of Pub. 15 (Circular E), Employer’s Tax Guide;
section 8 of Pub. 80 (Circular SS), Federal Tax Guide for Employers in the
U.S. Virgin Islands, Guam, American Samoa, and the Commonwealth of
the Northern Mariana Islands; and in the instructions for your tax return.
Caution. IRS uses Form 945-A to match the tax liability you reported on
Forms 945, CT-1, 944, or Form 944-SS with your deposits. The IRS also
uses Form 945-A to determine if you have deposited your withholding
and employment tax liabilities on time. Unless Form 945-A is properly
completed and filed (if applicable) with your federal income tax
withholding or employment tax return, the IRS may propose an
“averaged” failure-to-deposit penalty. See Deposit Penalties in section 11
of Pub. 15 (Circular E) or section 8 or Pub. 80 (Circular SS) for more
information.

Specific Instructions
If you are required to report your tax liabilities on Form 945-A as
discussed above, file it with your tax return. Each numbered space on
Form 945-A corresponds to a date during the year. Report your tax
liabilities in the spaces that correspond to the dates you made payments,
not the date tax deposits were made. For example, if you became liable
for a pension distribution on December 31, 2005, but did not make the
distribution until January 3, 2006, the federal income tax withholding
liability for the distribution must be reported on Form 945-A for 2006, on
line 3 under January Tax Liability.
Form 945 filers. Do not complete entries A through M of the Monthly
Summary of Federal Tax Liability (line 8 on Form 945). Be sure to mark
the semiweekly schedule depositor checkbox above line 8 on Form 945.
Form CT-1 filers. Do not complete the Monthly Summary of Railroad
Retirement Tax Liability (page 2 on Form CT-1).
Form 944 and 944-SS filers. Check the “Line 9 (“Line 7” on Form
944-SS) is $2,500 or more...” box in line 13, leave blank lines 13a–13m.
Complete line 14 on Form 944.
Example 1. Cedar Co., which has a semiweekly deposit schedule, makes
periodic payments on gambling winnings on the 15th day of each month.
On December 24, 2006, in addition to its periodic payments, it withheld
from a payment on gambling winnings under the backup withholding
rules. Since Cedar Co. is a semiweekly schedule depositor, it must
record these nonpayroll withholding liabilities on Form 945-A. It must
report tax liabilities on line 15 for each month and line 24 for December.

Page

3

Cedar Co. enters the monthly totals on lines A through L. It adds these
monthly subtotals and enters the total tax liability for the year on line M.
The amount on line M should equal line 4 of Form 945.
Example 2. Fir Co. is a semiweekly schedule depositor. During January,
it withheld federal income tax on pension distributions as follows:
$52,000 on January 10; $35,000 on January 24. Since Fir Co. is a
semiweekly schedule depositor, it must record its federal income tax
withholding liabilities on Form 945-A. It must record $52,000 on line 10
and $35,000 on line 24 for January.
Example 3. Because Elm Co. is a new business, it is a monthly schedule
depositor for 2006. During January, it withheld federal income tax on
nonpayroll payments as follows: $2,000 on January 10; $99,000 on
January 24. The deposit rules require that a monthly schedule depositor
begin depositing on a semiweekly deposit schedule when a $100,000 or
more tax liability is accumulated on any day within a month (see section
11 of Pub. 15 (Circular E) for details). Since Elm Co. accumulated
$101,000 ($2,000 + $99,000) on January 24, 2006, it became a
semiweekly schedule depositor on January 25. Elm Co. must complete
Form 945-A and file it with Form 945. It must record $2,000 on line 10
and $99,000 on line 24 for January. No entries should be made on line 8
of Form 945 although Elm Co. was a monthly schedule depositor until
January 24.
Adjustments. Semiweekly schedule depositors must report adjustments
on Form 945-A to correct administrative errors for federal income tax
on Forms 945 and 944, to correct errors for taxes imposed by the
Railroad Retirement Tax Act (RRTA) on prior Forms CT-1, and to correct
errors for social security and Medicare taxes on prior Forms 944 and
944-SS. (Reminder: You will not be allowed a refund or credit for any
prior year overpayment of federal income tax that you withheld or
deducted from a payee.) For information on correcting administrative
errors, see the instructions for your tax return and section 13 of Pub. 15
(Circular E) or section 9 of Pub. 80 (Circular SS). (The Pub. 15 (Circular E)
instructions for making adjustments refer to Form 941, but they also
apply to adjustments on other employment tax returns.) If the adjustment
increases your current liability, report the adjustment on the entry space
corresponding to the date the error was discovered. Adjust your tax
deposit for the adjustment amount.
If the adjustment decreases your current liability, use the adjustment
amount as a credit to offset subsequent liabilities on Form 945-A until it
is used up. For example, on January 8, 2006, Oak Rail Co. discovered
that a mathematical error was made on a prior year return, resulting in a
$10,000 overstatement of nonpayroll federal income tax withholding.
Since the correct amounts were withheld and reported on Forms 1099-R,
this is an administrative error that can be corrected on Form 945. Oak
Rail Co. made payments subject to nonpayroll federal income tax
withholding on January 3, 10, 17, 24, and 31 and had a $5,000 tax
liability for each of those pay dates. On Form 945-A, it must report
$5,000 on line 3 for January. The adjustment for the $10,000
overstatement is used to offset the January 10 and 17 liabilities, so these
two $5,000 liabilities are not deposited or reported on Form 945-A. The
$5,000 liabilities for January 24 and 31 must be reported on lines 24 and
31 for January.
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