F-945,Annual Return of Withheld Federal Income Tax/Voucher; F-945-A, Annual Record of Federal Tax Liability

2020

Instructions for Form 945

Department of the Treasury
Internal Revenue Service

Annual Return of Withheld Federal Income Tax
Section references are to the Internal Revenue Code
unless otherwise noted.

Future Developments
For the latest information about developments related to
Form 945 and its instructions, such as legislation enacted
after they were published, go to IRS.gov/Form945.

What's New
New Form 1099-NEC. There is a new Form 1099-NEC
to report nonemployee compensation paid in 2020 and
any backup withholding on the compensation.
New filing addresses. The filing addresses have
changed for some filers. See Where To File, later, before
filing your return.

Reminders
Correcting a previously filed Form 945. If you
discover an error on a previously filed Form 945, make the
correction using Form 945-X, Adjusted Annual Return of
Withheld Federal Income Tax or Claim for Refund. Form
945-X is filed separately from Form 945. For more
information, see the Instructions for Form 945-X or go to
IRS.gov/CorrectingEmploymentTaxes.
Federal tax deposits must be made by electronic
funds transfer (EFT). You must use EFT to make all
federal tax deposits. Generally, an EFT is made using the
Electronic Federal Tax Payment System (EFTPS). If you
don't want to use EFTPS, you can arrange for your tax
professional, financial institution, payroll service, or other
trusted third party to make electronic deposits on your
behalf. Also, you may arrange for your financial institution
to initiate a same-day wire payment on your behalf.
EFTPS is a free service provided by the Department of the
Treasury. Services provided by your tax professional,
financial institution, payroll service, or other third party
may have a fee.
For more information on making federal tax deposits,
see section 11 of Pub. 15. To get more information about
EFTPS or to enroll in EFTPS, go to EFTPS.gov, or call
800-555-4477 or 800-733-4829 (TDD). Additional
information about EFTPS is also available in Pub. 966.

!

CAUTION

For an EFTPS deposit to be on time, you must
submit the deposit by 8 p.m. Eastern time the day
before the date the deposit is due.

Same-day wire payment option. If you fail to submit a
deposit transaction on EFTPS by 8 p.m. Eastern time the
day before the date a deposit is due, you can still make
your deposit on time by using the Federal Tax Collection
Service (FTCS) to make a same-day wire payment. To
use the same-day wire payment method, you will need to
make arrangements with your financial institution ahead of
Sep 28, 2020

time. Please check with your financial institution regarding
availability, deadlines, and costs. Your financial institution
may charge you a fee for payments made this way. To
learn more about the information you will need to give
your financial institution to make a same-day wire
payment, go to IRS.gov/SameDayWire.
Timeliness of federal tax deposits. If a deposit is
required to be made on a day that isn't a business day, the
deposit is considered timely if it is made by the close of
the next business day. A business day is any day other
than a Saturday, Sunday, or legal holiday. The term “legal
holiday” for deposit purposes includes only those legal
holidays in the District of Columbia. Legal holidays in the
District of Columbia are provided in section 11 of Pub. 15.
Electronic filing and payment. Businesses can enjoy
the benefits of filing tax returns and paying their federal
taxes electronically. Whether you rely on a tax
professional or handle your own taxes, the IRS offers you
convenient programs to make filing and paying easier.
Spend less time worrying about taxes and more time
running your business. Use e-file and EFTPS to your
benefit.
• For e-file, go to IRS.gov/EmploymentEfile for additional
information. A fee may be charged to file electronically.
• For EFTPS, go to EFTPS.gov or call EFTPS Customer
Service at 800-555-4477 or 800-733-4829 (TDD) for
additional information.
If you're filing your tax return or paying your
federal taxes electronically, a valid employer
CAUTION identification number (EIN) is required at the time
the return is filed or the payment is made. If a valid EIN
isn't provided, the return or payment won't be processed.
This may result in penalties. See Employer Identification
Number (EIN), later, for more information about applying
for an EIN.

!

Electronic funds withdrawal (EFW). If you file Form
945 electronically, you can e-file and use EFW to pay the
balance due in a single step using tax preparation
software or through a tax professional. However, don't use
EFW to make federal tax deposits. For more information
on paying your taxes using EFW, go to IRS.gov/EFW.
Credit or debit card payments. You can pay the
balance due shown on Form 945 by credit or debit card.
Your payment will be processed by a payment processor
who will charge a processing fee. Don't use a credit or
debit card to make federal tax deposits. For more
information on paying your taxes with a credit or debit
card, go to IRS.gov/PayByCard.
Online payment agreement. You may be eligible to
apply for an installment agreement online if you can't pay
the full amount of tax you owe when you file your return.
For more information, see What if you can't pay in full,
later.

Cat. No. 20534D

Report all federal income tax withholding from
nonpayroll payments or distributions annually on one
Form 945. Don't file more than one Form 945 for any
calendar year.

Paid preparers. If you use a paid preparer to complete
Form 945, the paid preparer must complete and sign the
paid preparer's section of the form.
Outsourcing your tax duties. You're responsible to
ensure that tax returns are filed and deposits and
payments are made, even if you contract with a third party
to perform these acts. You remain responsible if the third
party fails to perform any required action. Before you
choose to outsource any of your tax duties (that is,
withholding, reporting, and paying over federal income
tax) to a third-party payer, such as a payroll service
provider or reporting agent, go to IRS.gov/
OutsourcingPayrollDuties for helpful information on this
topic. For more information on the different types of
third-party payer arrangements, see section 16 in Pub. 15.

All federal income tax withholding reported on
Forms 1099 (for example, Form 1099-R, Distributions
From Pensions, Annuities, Retirement or Profit-Sharing
Plans, IRAs, Insurance Contracts, etc.; Form 1099-MISC,
Miscellaneous Income; or Form 1099-NEC, Nonemployee
Compensation) or Form W-2G, Certain Gambling
Winnings, must be reported on Form 945.
Don't report federal income tax withholding from wages
on Form 945. All federal income tax withholding and
employment taxes reported on Form W-2, Wage and Tax
Statement, must be reported on Form 941, Employer's
QUARTERLY Federal Tax Return; Form 943, Employer's
Annual Federal Tax Return for Agricultural Employees;
Form 944, Employer's ANNUAL Federal Tax Return;
Schedule H (Form 1040), Household Employment Taxes;
or Form CT-1, Employer's Annual Railroad Retirement
Tax Return, as appropriate.

How to get forms and publications. You can download
or print some of the forms and publications you may need
on IRS.gov/Forms. Otherwise, you can go to IRS.gov/
OrderForms to place an order and have forms mailed to
you. You should receive your order within 10 business
days.

Don't report on Form 945 federal income tax withheld
on distributions to participants from nonqualified pension
plans (including nongovernmental section 457(b) plans)
and some other deferred compensation arrangements
that are treated as wages and are reported on Form W-2.
Report such withholding on Form 941 or Form 944. See
Distributions from nonqualified pension plans and
deferred compensation plans in the Reminders section of
Pub. 15 for more information.

Where can you get telephone help? For answers to
your questions about completing Form 945 or tax deposit
rules, you can call the IRS at 800-829-4933 (Business and
Specialty Tax Line) or 800-829-4059 (TDD/TTY for
persons who are deaf, hard of hearing, or have a speech
disability) Monday–Friday from 7:00 a.m. to 7:00 p.m.
local time (Alaska and Hawaii follow Pacific time).
Photographs of missing children. The IRS is a proud
partner with the National Center for Missing & Exploited
Children® (NCMEC). Photographs of missing children
selected by the Center may appear in instructions on
pages that would otherwise be blank. You can help bring
these children home by looking at the photographs and
calling 1-800-THE-LOST (1-800-843-5678) if you
recognize a child.

Compensation paid to H-2A visa holders. Generally,
report compensation of $600 or more paid to foreign
agricultural workers who entered the country on H-2A
visas on Form W-2 and Form 943. However, if an H-2A
visa worker didn't provide the employer with a taxpayer
identification number, the employee is subject to backup
withholding. The employer must report the wages and
backup withholding on Form 1099-MISC. The employer
must also report the backup withholding on Form 945,
line 2. For more information on foreign agricultural
workers on H-2A visas, go to IRS.gov/H2A.

General Instructions
Purpose of Form 945

These instructions give you some background information
about Form 945. They tell you who must file Form 945,
how to complete it line by line, and when and where to file
it.

Who Must File

If you withhold or are required to withhold federal income
tax (including backup withholding) from nonpayroll
payments, you must file Form 945. See Purpose of Form
945, earlier. You don't have to file Form 945 for those
years in which you don't have a nonpayroll tax liability.
Don't report on Form 945 withholding that is required to be
reported on Form 1042, Annual Withholding Tax Return
for U.S. Source Income of Foreign Persons.

Use Form 945 to report federal income tax withheld (or
required to be withheld) from nonpayroll payments.
Nonpayroll payments include:

• Pensions (including distributions from tax-favored
retirement plans, for example, section 401(k), section
403(b), and governmental section 457(b) plans),
annuities, and IRA distributions;
• Military retirement;
• Gambling winnings;
• Indian gaming profits;
• Certain government payments on which the recipient
elected voluntary income tax withholding;
• Dividends and other distributions by an Alaska Native
Corporation (ANC) on which the recipient elected
voluntary income tax withholding; and
• Payments subject to backup withholding.

If you file Form 945, you may also be required to file
Form 945-A, Annual Record of Federal Tax Liability. See
the line 7 instructions for details.

When To File

For 2020, file Form 945 by February 1, 2021. However, if
you made deposits on time in full payment of the taxes for
the year, you may file the return by February 10, 2021.
If we receive your return after the due date, we will treat
your return as filed on time if the envelope containing your

-2-

Instructions for Form 945 (2020)

return is properly addressed, contains sufficient postage,
and is postmarked by the U.S. Postal Service on or before
the due date, or sent by an IRS-designated private
delivery service (PDS) on or before the due date.
However, if you don't follow these guidelines, we will
consider your return filed when it is actually received.

945. Mail your return to the address listed for your location
in the table below.
PDSs can't deliver to P.O. boxes. You must use the
U.S. Postal Service to mail an item to a P.O. box address.
Go to IRS.gov/PDS for the current list of PDSs. For the
IRS mailing address to use if you’re using a PDS, go to
IRS.gov/PDSstreetAddresses. Select the mailing address
listed on the webpage that is in the same state as the
address to which you would mail returns filed without a
payment, as shown in the table below.

Where To File

You’re encouraged to file Form 945 electronically. Go to
IRS.gov/EmploymentEfile for more information on
electronic filing. If you file a paper return, where you file
depends on whether you include a payment with Form

Mailing Addresses for Form 945
If you’re in . . .

Without a payment . . .

With a payment . . .

Connecticut, Delaware, District of Columbia, Georgia, Illinois, Indiana,
Kentucky, Maine, Maryland, Massachusetts, Michigan, New Hampshire,
New Jersey, New York, North Carolina, Ohio, Pennsylvania, Rhode
Island, South Carolina, Tennessee, Vermont, Virginia, West Virginia,
Wisconsin

Department of the Treasury
Internal Revenue Service
Kansas City, MO 64999-0042

Internal Revenue Service
P.O. Box 806534
Cincinnati, OH 45280-6534

Alabama, Alaska, Arizona, Arkansas, California, Colorado, Florida,
Hawaii, Idaho, Iowa, Kansas, Louisiana, Minnesota, Mississippi,
Missouri, Montana, Nebraska, Nevada, New Mexico, North Dakota,
Oklahoma, Oregon, South Dakota, Texas, Utah, Washington, Wyoming

Department of the Treasury
Internal Revenue Service
Ogden, UT 84201-0042

Internal Revenue Service
P.O. Box 932300
Louisville, KY 40293-2300

No legal residence or principal place of business in any state

Internal Revenue Service
P.O. Box 409101
Ogden, UT 84409

Internal Revenue Service
P.O. Box 932300
Louisville, KY 40293-2300

Special filing address for exempt organizations; federal, state, and
local governmental entities; and Indian tribal governmental entities,
regardless of location

Department of the Treasury
Internal Revenue Service
Ogden, UT 84201-0042

Internal Revenue Service
P.O. Box 932300
Louisville, KY 40293-2300

Employer Identification Number (EIN)

If You Change Your Business Name,
Business Address, or Responsible
Party

If you don't have an EIN, you may apply for one online by
visiting IRS.gov/EIN. If the principal business was created
or organized outside of the United States or U.S.
territories, you may also apply for an EIN by calling
267-941-1099 (toll call).

Notify the IRS immediately if you change your business
name, business address, or responsible party.
• Write to the IRS office where you file your returns (using
the Without a payment address under Where To File,
earlier) to notify the IRS of any business name change.
See Pub. 1635 to see if you need to apply for a new EIN.
• Complete and mail Form 8822-B to notify the IRS of a
business address or responsible party change. Don’t mail
Form 8822-B with your Form 945. For a definition of
“responsible party,” see the Instructions for Form SS-4.

You may also apply for an EIN by faxing or mailing
Form SS-4 to the IRS. If you haven't received your EIN by
the due date of Form 945, file a paper return and write
"Applied For" and the date you applied in this entry space.
If you're filing your tax return electronically, a valid
EIN is required at the time the return is filed. If a
CAUTION valid EIN isn't provided, the return won't be
accepted. This may result in penalties.

!

Penalties and Interest

Always be sure the EIN on the form you file
TIP exactly matches the EIN the IRS assigned to your
business. Don't use your social security number
(SSN) or individual taxpayer identification number (ITIN)
on forms that ask for an EIN. The name and EIN on Form
945 must match the name and EIN on your information
returns where federal income tax withholding is reported
(for example, backup withholding reported on Form
1099-NEC). Filing a Form 945 with an incorrect EIN or
using another business's EIN may result in penalties and
delays in processing your return.

Instructions for Form 945 (2020)

There are penalties for filing Form 945 late and for paying
or depositing taxes late, unless filing and/or paying late is
due to reasonable cause and not due to willful neglect.
See section 11 of Pub. 15 for more information on deposit
penalties. Interest is charged on taxes paid late at a rate
set by law. There are also penalties for failure to file
information returns (for example, Forms 1099-MISC,
1099-NEC, 1099-R, or W-2G) and for failure to furnish
payee statements to payees.
If you receive a notice about a penalty after you file this
return, reply to the notice with an explanation and we will
determine if you meet reasonable-cause criteria. Don't
attach an explanation when you file your return.

-3-

deposits for Forms 941, 943, 944, or Form CT-1 with
deposits for Form 945. Also, don't combine Form 945
taxes with taxes for Forms 941, 943, 944, or Form CT-1
for purposes of determining any of the deposit rules
discussed next, such as whether the $2,500 threshold is
applicable, whether you're a monthly or semiweekly
schedule depositor, or whether the $100,000 next-day
deposit rule applies.

Use Form 843 to request abatement of assessed
penalties or interest. Don't request abatement of
assessed penalties or interest on Form 945 or Form
945-X.
If taxes that must be withheld (that is, trust fund
taxes) aren't withheld or aren't deposited or paid
CAUTION to the United States Treasury, the trust fund
recovery penalty may apply. The penalty is 100% of the
unpaid trust fund tax. If these unpaid taxes can't be
immediately collected from the employer or business, the
penalty may be imposed on all persons who are
determined by the IRS to be responsible for collecting,
accounting for, or paying over these taxes, and who acted
willfully in not doing so. For more information, see section
11 of Pub. 15.

!

Generally, the deposit rules that apply to Form 941 also
apply to Form 945. However, because Form 945 is an
annual return, the rules for determining your deposit
schedule (discussed below) are different from those for
Form 941. See section 11 of Pub. 15 for a detailed
discussion of the deposit rules.
If the total amount of tax for 2020 is less than

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

Voluntary Income Tax Withholding

during the year.

States must allow unemployment compensation
recipients to elect to have federal income tax withheld at a
10% rate. Recipients paid under the Railroad
Unemployment Insurance Act may also elect withholding
at a 10% rate.

Determining Your Deposit Schedule
There are two deposit schedules—monthly or
semiweekly—for determining when you must deposit
withheld federal income tax. These schedules tell you
when a deposit is due after a tax liability arises (that is,
you make a payment subject to federal income tax
withholding, including backup withholding). Before the
beginning of each calendar year, you must determine
which of the two deposit schedules you must use.

Recipients of any of the following payments may
request federal income tax withholding at a rate of 7%,
10%, 12%, or 22%.
• Social security and Tier 1 railroad retirement benefits.
• Certain crop disaster payments.
• Commodity Credit Corporation loans.
• Dividends and other distributions by an ANC.

For 2021, you're a monthly schedule depositor for Form
945 if the total tax reported on your 2019 Form 945 (line 3)
was $50,000 or less. If the total tax reported for 2019 was
more than $50,000, you're a semiweekly schedule
depositor.

The payee may request voluntary withholding on Form
W-4V or you may develop your own substitute form. Any
voluntary withholding on these payments must be
reported on Form 945 (and on the required information
return—Form 1099-DIV, Form 1099-G, Form SSA-1099,
or Form RRB-1099) and is subject to the deposit rules.

If you're a monthly schedule depositor and
accumulate a $100,000 liability or more on any
CAUTION day during a calendar month, your deposit
schedule changes on the next day to semiweekly for the
remainder of the year and for the following year. For more
information, see the $100,000 Next-Day Deposit Rule in
section 11 of Pub. 15.

!

Additional Information About
Nonpayroll Payments

• Pub. 15-A includes information on federal income tax
withholding from pensions and annuities (section 8).
• Pub. 15-T includes information on federal income tax
withholding from Indian gaming profits.
• The Instructions for Forms 1099-R and 5498 provide
information about pensions, annuities, IRAs, and military
retirement.
• The Instructions for Forms W-2G and 5754 provide
information on withholding from gambling winnings.
• Part N in the General Instructions for Certain
Information Returns provides information on backup
withholding.
• For more information about dividends and other
distributions by an ANC, see Notice 2013-77, 2013-50
I.R.B. 632, available at IRS.gov/irb/
2013-50_IRB#NOT-2013-77.
• Go to IRS.gov/EmploymentTaxes for additional
information about employment taxes.

Specific Instructions
Line A. Final Return

If you go out of business or end operations and you won't
have to file Form 945 in the future, file a final return. Be
sure to check the box on line A and enter the date that
final nonpayroll payments were made. Also, attach a
statement to your return showing the name of the person
keeping the payment records and the address where
those records will be kept.

If you sell or transfer your business during the year, you
and the new owner must each file a Form 945 for the year
in which the transfer occurred. Report only the taxes you
withheld.
When two businesses merge, the continuing firm must
file a return for the year in which the change took place
and the other firm should file a final return.

Depositing Withheld Taxes

Deposit all nonpayroll (Form 945) withheld federal income
tax, including backup withholding, by EFT. Combine all
Form 945 taxes for deposit purposes. Don't combine

Changing from one form of business to another, such
as from a sole proprietorship to a partnership or
-4-

Instructions for Form 945 (2020)

in 2020, and any overpayment that you applied from your
2019 return.

corporation, is considered a transfer. If a transfer occurs,
you may need a new EIN. See Pub. 1635 and section 1 of
Pub. 15 for more information.

Line 5. Balance Due

Attach a statement to your return with all the following
information.
• The new owner's name (or the new name of the
business).
• Whether the business is now a sole proprietorship,
partnership, or corporation.
• The kind of change that occurred (a sale or transfer).
• The date of the change.
• The name of the person keeping the payroll records
and the address where those records will be kept.

If line 3 is more than line 4, enter the difference on line 5.
Otherwise, see Overpayment, later. You don't have to pay
if line 5 is under $1. Generally, you should have a balance
due only if your total taxes for the year (line 3) are less
than $2,500. If you made payments under the accuracy of
deposits rule, see section 11 of Pub. 15.
If you were required to make federal tax deposits, pay
the amount shown on line 5 by EFT. If you weren't
required to make federal tax deposits or you’re a monthly
schedule depositor making a payment under the accuracy
of deposits rule (see section 11 of Pub. 15), you may pay
the amount shown on line 5 by EFT, credit card, debit
card, check, money order, or EFW. For more information
on electronic payment options, go to IRS.gov/Payments.

If no sale or transfer occurred, or you don’t know the
name of the person to whom the business was sold or
transferred, that fact should be included in the statement.

Completing Form 945

Enter dollars to the left of the preprinted line and cents to
the right of it. Don't round entries to whole dollars. Always
show an amount for cents, even if it is zero.

If you pay by EFT, credit card, or debit card, file your
return using the Without a payment address under Where
To File, earlier. Don't file Form 945-V, Payment Voucher.
If you pay by check or money order, make it payable to
“United States Treasury.” Enter your EIN, “Form 945,” and
“2020” on your check or money order. Complete Form
945-V and enclose with Form 945.

Line 1. Federal Income Tax Withheld

Enter the federal income tax that you withheld (or were
required to withhold) from pensions (including
distributions from tax-favored retirement plans, for
example, section 401(k), section 403(b), and
governmental section 457(b) plans), annuities, IRA
distributions, military retirement, Indian gaming profits,
and gambling winnings (regular gambling withholding
only; backup withholding on gambling winnings is
reported on line 2). Also, enter any voluntary amount that
you withheld on certain government payments, and on
dividends and other distributions by an ANC.

If line 3 is $2,500 or more and you deposited all taxes
when due, the amount on line 5 should be zero.

!

CAUTION

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
agreement online.
You can apply for an installment agreement online if:
• You can't pay the full amount shown on line 5,
• The total amount you owe is $25,000 or less, and
• You can pay the liability in full in 24 months.
To apply using the Online Payment Agreement
Application, go to IRS.gov/OPA.
Under an installment agreement, you can pay what you
owe in monthly installments. There are certain conditions
you must meet to enter into and maintain an installment
agreement, such as paying the liability within 24 months,
and making all required deposits and timely filing tax
returns during the length of the agreement.
If your installment agreement is accepted, you will be
charged a fee and you will be subject to penalties and
interest on the amount of tax not paid by the due date of
the return.

Federal income tax withholding reported on Form
W-2 must be reported on Form 941, Form 943,
CAUTION Form 944, or Schedule H (Form 1040), as
appropriate.

!

Line 2. Backup Withholding

Enter any backup withholding that you withheld (or were
required to withhold), including backup withholding on
gambling winnings. See part N in the General Instructions
for Certain Information Returns for more information on
backup withholding.
Regulated investment companies (RICs) and real
estate investment trusts (REITs) must report any backup
withholding on Form 945 in the year that the dividends are
actually paid. This includes January payments of
dividends declared during October, November, and
December of the prior year. See the Instructions for Form
1099-DIV for special reporting requirements.

Line 6. Overpayment

Line 3. Total Taxes

If line 4 is more than line 3, enter the difference on line 6.
Never make an entry on both lines 5 and 6.

Add lines 1 and 2. If total taxes are $2,500 or more, the
amount reported on line 3 must equal the total liability for
the year reported on line 7M of the Monthly Summary of
Federal Tax Liability, or line M of Form 945-A.

If you deposited more than the correct amount for the
year, you can have the overpayment refunded or applied
to your next return by checking the appropriate box.
Check only one box below line 6. If you don't check either
box or if you check both boxes, generally we will apply the
overpayment to your next return. Regardless of any box

Line 4. Total Deposits

Enter your total Form 945 deposits for the year, including
any overpayment that you applied from filing Form 945-X
Instructions for Form 945 (2020)

If you didn't make deposits as required and
instead pay the taxes with Form 945, you may be
subject to a penalty.

-5-

Who Must Sign (Approved Roles)

you check or don't check on line 6, we may apply your
overpayment to any past due tax account that is shown in
our records under your EIN.

The following persons are authorized to sign the return for
each type of business entity.
• Sole proprietorship—The individual who owns the
business.
• Corporation (including a limited liability company
(LLC) treated as a corporation)—The president, vice
president, or other principal officer duly authorized to sign.
• Partnership (including an LLC treated as a
partnership) or unincorporated organization—A
responsible and duly authorized partner, member, or
officer having knowledge of its affairs.
• Single-member LLC treated as a disregarded entity
for federal tax purposes—The owner of the LLC or a
principal officer duly authorized to sign.
• Trust or estate—The fiduciary.

If line 6 is under $1, we will send a refund or apply it to
your next return only if you ask us in writing to do so.

Line 7. Monthly Summary of Federal
Tax Liability

!

CAUTION

This is a summary of your monthly tax liability, not
a summary of deposits made. If line 3 is less than
$2,500, don't complete line 7 or Form 945-A.

Complete line 7 only if you were a monthly schedule
depositor for the entire year and line 3 is $2,500 or more.
See Determining Your Deposit Schedule, earlier.

!

The amount entered on line 7M must equal the
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
filed.

CAUTION

Report your liabilities on Form 945-A instead of on
line 7 if either of the following applies.
• You were a semiweekly schedule depositor
during 2020. Don't complete entries A through M of line 7.
Instead, complete and file Form 945-A with Form 945.
• You were a monthly schedule depositor for 2020 and
during any month you accumulated nonpayroll taxes of
$100,000 or more. Because this converted you to a
semiweekly schedule depositor for the remainder of 2020
(and for 2021), you must report your liabilities on Form
945-A for the entire year. Don't complete entries A through
M of line 7. For more information, see the $100,000
Next-Day Deposit Rule in section 11 of Pub. 15.

Alternative signature method. Corporate officers or
duly authorized agents may sign Form 945 by rubber
stamp, mechanical device, or computer software
program. For details and required documentation, see
Rev. Proc. 2005-39, 2005-28 I.R.B. 82, available at
IRS.gov/irb/2005-28_IRB#RP-2005-39.

Paid Preparer Use Only

A paid preparer must sign Form 945 and provide the
information in the Paid Preparer Use Only section if the
preparer was paid to prepare Form 945 and isn't an
employee of the filing entity. Paid preparers must sign
paper returns with a manual signature. The preparer must
give you a copy of the return in addition to the copy to be
filed with the IRS.

Third-Party Designee

If you want to allow an employee, a paid tax preparer, or
another person to discuss your Form 945 with the IRS,
check the “Yes” box in the Third-Party Designee section of
Form 945. Enter the name, phone number, and five-digit
personal identification number (PIN) of the specific person
to speak with—not the name of the firm that prepared your
return. The designee may choose any five numbers as his
or her PIN.

If you're a paid preparer, enter your Preparer Tax
Identification Number (PTIN) in the space provided.
Include your complete address. If you work for a firm,
enter the firm's name and the EIN of the firm. You can
apply for a PTIN online or by filing Form W-12. For more
information about applying for a PTIN online, go to
IRS.gov/PTIN. You can't use your PTIN in place of the EIN
of the tax preparation firm.

By checking "Yes," you authorize the IRS to talk to the
person you named (your designee) about any questions
we may have while we process your return. You also
authorize your designee to do all of the following.
• Give us any information that is missing from your return.
• Call us for information about the processing of your
return.
• Respond to certain IRS notices that you have shared
with your designee about math errors and return
preparation. The IRS won't send notices to your designee.

Generally, don't complete this section if you're filing the
return as a reporting agent and have a valid Form 8655 on
file with the IRS. However, a reporting agent must
complete this section if the reporting agent offered legal
advice, for example, advising the client on determining
whether federal income tax withholding is required on
certain payments.
Privacy Act and Paperwork Reduction Act Notice.
We ask for the information on Form 945 to carry out the
Internal Revenue laws of the United States. We need it to
figure and collect the right amount of tax. Sections 3402,
3405, and 3406 of the Internal Revenue Code require
taxpayers to pay over to the IRS federal income tax
withheld from certain nonpayroll payments and
distributions, including backup withholding. Form 945 is
used to report these withholdings. Section 6011 requires
you to provide the requested information if the tax is
applicable to you. Section 6109 requires you to provide

You’re not authorizing your designee to bind you to
anything (including additional tax liability) or to otherwise
represent you before the IRS. If you want to expand the
designee's authorization, see Pub. 947.
The authorization will automatically expire 1 year from
the due date (without regard to extensions) for filing your
Form 945. If you or your designee wants to terminate the
authorization, write to the IRS office for your location using
the Without a payment address under Where To File,
earlier.
-6-

Instructions for Form 945 (2020)

your identification number. If you fail to provide this
information in a timely manner, or provide false or
fraudulent information, you may be subject to penalties.

this information to other countries under a tax treaty, to
federal and state agencies to enforce federal nontax
criminal laws, or to federal law enforcement and
intelligence agencies to combat terrorism.

You’re not required to provide the information
requested on a form that is subject to the Paperwork
Reduction Act unless the form displays a valid OMB
control number. Books or records relating to a form or
instructions must be retained as long as their contents
may become material in the administration of any Internal
Revenue law.

The time needed to complete and file Form 945 will
vary depending on individual circumstances. The
estimated average time is: Recordkeeping, 5 hr., 58
min.; Learning about the law or the form, 24 min.; and
Preparing and sending the form to the IRS, 30 min. If
you have comments concerning the accuracy of these
time estimates or suggestions for making Form 945
simpler, we would be happy to hear from you. You can
send us comments from IRS.gov/FormComments. Or you
can send your comments to the Internal Revenue Service,
Tax Forms and Publications Division, 1111 Constitution
Ave. NW, IR-6526, Washington, DC 20224. Don't send
Form 945 to this address. Instead, see Where To File,
earlier.

Generally, tax returns and return information are
confidential, as required by section 6103. However,
section 6103 allows or requires the IRS to disclose or give
the information shown on your tax return to others
described in the Code. For example, we may disclose
your tax information to the Department of Justice for civil
and criminal litigation, and to cities, states, the District of
Columbia, and U.S. commonwealths and possessions for
use in administering their tax laws. We may also disclose

Instructions for Form 945 (2020)

-7-