Form 945-X - Adjusted Annual Return of Withheld Federal Income Tax or Claim for Refund

Instructions for Form 945-X
(February 2014)

Department of the Treasury
Internal Revenue Service

Adjusted Annual Return of Withheld Federal Income Tax or Claim for Refund
Section references are to the Internal Revenue Code
unless otherwise noted.

Future Developments

For the latest information about developments related to
Form 945-X and its instructions, such as legislation
enacted after they were published, go to www.irs.gov/form
945x.

General Instructions:
Understanding Form 945-X
What Is the Purpose of Form 945-X?
Use Form 945-X to correct administrative errors only on a
previously filed Form 945. An administrative error occurs if
the federal income tax (including backup withholding) you
reported on Form 945 is not the amount you actually
withheld from payees. For example, if the total federal
income tax you actually withheld was incorrectly reported
on Form 945 due to a mathematical or transposition error,
this would be an administrative error.
Use Form 843, Claim for Refund and Request for
Abatement, to request a refund or abatement of assessed
interest or penalties. Do not request abatement of
assessed interest or penalties on Form 945 or Form
945-X.
We use the terms “correct” and “corrections” on
Form 945-X and in these instructions to include
interest-free adjustments under sections 6205
and 6413 and claims for refund and abatement under
sections 6402, 6414, and 6404. See Rev. Rul. 2009-39 for
examples of how the interest-free adjustment and claim
for refund rules apply in 10 different situations. You can
find Rev. Rul. 2009-39, 2009–52 I.R.B. 951, at
www.irs.gov/irb/2009-52_IRB/ar14.html.

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When you discover an error on a previously filed Form
945, you must:
Correct that error using Form 945-X,
File a separate Form 945-X for each Form 945 that you
are correcting, and
File Form 945-X separately. Do not file Form 945-X
with Form 945.
Report the correction of underreported and
overreported amounts for the same year on a single Form
945-X, unless you are requesting a refund or abatement. If
you are requesting a refund or abatement, file one Form
945-X correcting the underreported amounts and a
second Form 945-X correcting the overreported amounts.
You will use the adjustment process if you
underreported tax and are making a payment, or if you
overreported tax and will be applying the credit to Form
945 for the period during which you file Form 945-X.
Feb 19, 2014

However, see the Caution under Is There a Deadline for
Filing Form 945-X, later, if you are correcting overreported
amounts during the last 90 days of a period of limitations.
You will use the claim process if you overreported tax and
are requesting a refund or abatement of the overreported
amount. Follow the chart on page 8 for help in choosing
whether to use the adjustment process or the claim
process.
Be sure to give us a detailed explanation on line 7 for
each correction that you show on Form 945-X.
Do not use Form 945-X to correct Forms CT-1,
941, 943, or 944. Instead, use the “X” form that
CAUTION
corresponds to those forms (Form CT-1 X, 941-X,
943-X, or 944-X). If you did not file a Form 945 for one or
more years, do not use Form 945-X. Instead, file Form
945 for each of those years.

!

Where Can You Get Help?
For help filing Form 945-X or for questions about withheld
federal income tax and tax corrections, you can:
Call the IRS Business and Specialty Tax Line toll free at
1-800-829-4933 or 1-800-829-4059 (TDD/TTY for
persons who are deaf, hard of hearing, or have a speech
disability) Monday–Friday from 7:00 a.m.– 7:00 p.m. local
time (Alaska and Hawaii follow Pacific time),
Visit the IRS website at www.irs.gov/businesses and
click on the Employment Taxes link under Businesses
Topics, or
See Pub. 15 (Circular E), Employer's Tax Guide.
See also How Can You Order Forms, Instructions, and
Publications from the IRS, later.

When Should You File Form 945-X?
File Form 945-X when you discover an administrative
error on a previously filed Form 945.
However, if your only errors on Form 945 relate to
federal tax liabilities reported on your Monthly Summary of
Federal Tax Liability on Form 945 or on Form 945-A,
Annual Record of Federal Tax Liability, do not file Form
945-X. For more information about correcting federal tax
liabilities reported on your Monthly Summary of Federal
Tax Liability on Form 945 or on Form 945-A, see the Form
945-A instructions.
Due dates. The due date for filing Form 945-X depends
on when you discover an error and if you underreported or
overreported tax. If you underreported tax, see
Underreported tax later. For overreported amounts, you
may choose to either make an interest-free adjustment or
file a claim for refund or abatement. If you are correcting
overreported amounts, see Overreported tax—adjustment
process and Overreported tax—claim process, later.
If any due date falls on a Saturday, Sunday, or legal
holiday, you may file Form 945-X on the next business

Cat. No. 20337I

Is There a Deadline for Filing Form
945-X?

day. If we receive Form 945-X after the due date, we will
treat Form 945-X as filed on time if the envelope
containing Form 945-X 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 on or before the
due date. If you do not follow these guidelines, we will
consider Form 945-X filed when it is actually received.
See Pub. 15 (Circular E) for more information on legal
holidays and IRS-designated private delivery services.

Generally, you may correct overreported taxes on a
previously filed Form 945 if you file Form 945-X within 3
years of the date Form 945 was filed or 2 years from the
date you paid the tax reported on Form 945, whichever is
later. You may correct underreported taxes on a
previously filed Form 945 if you file Form 945-X within 3
years of the date the Form 945 was filed. We call each of
these time frames a “period of limitations.” For purposes
of the period of limitations, Form 945 is considered filed
on April 15 of the succeeding calendar year if filed before
that date.

Underreported tax. If you are correcting underreported
tax, you must file Form 945-X by the due date of the return
for the return period in which you discovered the error
(January 31 of the following year) and pay the amount
you owe by the time you file. Doing so will generally
ensure that your correction is interest free and not subject
to failure-to-pay or failure-to-deposit penalties. See What
About Penalties and Interest, later.
If Form 945-X is filed late (after the due date of the
return for the return period in which you discovered the
error), you must attach an amended Form 945-A.
Otherwise, the IRS may assess an “averaged”
failure-to-deposit penalty. The total tax reported on line M
of Form 945-A must match the corrected tax (Form 945,
line 3, combined with any correction reported on Form
945-X, line 5) for the year, less any previous abatements
and interest-free tax assessments.

Example. You filed your 2010 Form 945 on January
27, 2011, and payments were timely made. The IRS treats
the return as if it were filed on April 15, 2011. On January
22, 2014, you discovered that you overreported federal
income tax withheld on that form by $10,000 due to a
mathematical error. To correct the error, you must file
Form 945-X by April 15, 2014, which is the end of the
period of limitations, and use the claim process.
If you file Form 945-X to correct overreported
amounts in the last 90 days of a period of
CAUTION
limitations (after January 15, 2014, in the
example above), you must use the claim process. You
cannot use the adjustment process. If you are also
correcting underreported amounts, you must file another
Form 945-X to correct the underreported amounts using
the adjustment process and pay any tax due.

!

Example—You owe tax. On February 6, 2013, you
discovered that you underreported $10,000 of federal
income tax actually withheld on your 2012 Form 945 due
to a mathematical error. File Form 945-X and pay the
amount you owe by January 31, 2014, because you
discovered the error in 2013 and January 31, 2014, is the
due date for that year. If you file Form 945-X before
January 31, 2014, pay the amount you owe when you file.

Where Should You File Form 945-X?
Send your completed Form 945-X to the Internal Revenue
Service Center shown below.

Overreported tax—adjustment process. If you
overreported tax and choose to apply the credit to Form
945, file an adjusted return on Form 945-X soon after you
discovered the error but more than 90 days before the
period of limitations on the credit or refund for correcting
the Form 945 expires. See Is There a Deadline for Filing
Form 945-X, later.

IF you are in . . .

Example—You want your credit applied to Form
945. On May 1, 2014, you discover that you overreported
$9,000 in backup withholding tax on your 2013 Form 945
due to a transposition error. You file Form 945-X on June
2, 2014. The IRS treats your credit as a tax deposit made
on January 1, 2014. When you file your 2014 Form 945,
include the amount from Form 945-X, line 5, on line 4
(“Total deposits”) of your 2014 Form 945.
Overreported tax—claim process. If you overreported
tax, you may choose to file a claim for refund or
abatement on Form 945-X any time before the period of
limitations on the credit or refund expires. If you also need
to correct any underreported amounts, you must file
another Form 945-X reporting only corrections to the
underreported amounts. See Is There a Deadline for Filing
Form 945-X, later.

Special filing addresses 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

Connecticut, Delaware, District of
Columbia, Florida, 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
Cincinnati, OH 45999-0042

Alabama, Alaska, Arizona, Arkansas,
California, Colorado, 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

No legal residence or principal place of
business in any state

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THEN use this address . . .

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

Instructions for Form 945-X (Rev. 2-2014)

How Should You Complete Form
945-X?

Always show an amount for cents. Do not round entries
to whole dollars.
Complete both pages and sign Form 945-X on page 2.
Staple multiple sheets in the upper-left corner.

Use One Form 945-X for Each Year You Are
Correcting

What About Penalties and Interest?

Generally, your correction of an underreported amount will
not be subject to a failure-to-pay penalty,
failure-to-deposit penalty, or interest if you:
File on time (by the due date of Form 945 for the year in
which you discover the error),
Pay the amount shown on line 5 by the time you file
Form 945-X,
Enter the date you discovered the error, and
Explain in detail the grounds and facts relied on to
support the correction.
No correction will be eligible for interest-free treatment
if any of the following apply.
The amounts underreported relate to an issue that was
raised in an examination of a prior period.
You knowingly underreported your tax liability.
You received a notice and demand for payment.
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. Do not
attach an explanation when you file your return.

Use a separate Form 945-X for each Form 945 that you
are correcting. For example, if you found errors on your
Forms 945 for 2012 and 2013, file one Form 945-X to
correct the 2012 Form 945. File a second Form 945-X to
correct the 2013 Form 945.

EIN, Name, and Address

Enter your EIN, name, and address in the spaces
provided. Also enter your name and EIN on the top of
page 2 and on any attachments. If your address has
changed since you filed your Form 945, enter the
corrected information and the IRS will update your
address of record.

Return You Are Correcting

In the box at the top of page 1 of Form 945-X, enter the
calendar year of the Form 945 you are correcting. Enter
the calendar year on page 2. Be sure to write your name,
EIN, Form 945-X, and calendar year on the top of any
attachments.

Enter the Date You Discovered Errors

Overview of the Process

You must enter the date you discovered errors. You
discover an error when you have enough information to be
able to correct it. If you are reporting several errors you
discovered at different times, enter the earliest date you
discovered an error here. Report any subsequent dates
and related errors on line 7.

The process to correct a previously filed Form 945 or file a
claim for refund is outlined below.
If you underreported the tax. If you underreported
the tax actually withheld on a previously filed Form 945,
check the box on line 1 and pay any additional amount
you owe by the time you file Form 945-X. For details on
how to make a payment, see the instructions for line 5,
later.

Must You Make an Entry on Each Line?

You must provide all of the information requested at the
top of page 1 of Form 945-X. You must check one box
(but not both) in Part 1. In Part 2, if any line does not
apply, leave it blank. Complete Parts 3 and 4 as
instructed.

Example—You underreported withheld income
taxes. On June 20, 2013, you discovered an error that
results in additional tax on your 2012 Form 945. File Form
945-X by January 31, 2014, and pay the amount you owe
by the time you file. See When Should You File Form
945-X, earlier. Do not attach Form 945-X to your 2013
Form 945.
If you overreported the tax. If you overreported the
tax actually withheld on a previously filed Form 945, you
may choose one of the following options.
Use the adjustment process. Check the box on line 1 to
apply any credit (negative amount) from line 5 to Form
945 for the year during which you file Form 945-X.
Use the claim process. Check the box on line 2 to file a
claim on Form 945-X requesting a refund or abatement of
the amount shown on line 5.

How Should You Report Negative Amounts?

Form 945-X uses negative numbers to show reductions in
tax (credits) and positive numbers to show additional tax
(amounts you owe).
When reporting a negative amount in column 3, use a
minus sign instead of parentheses. For example, enter
“-10.59” instead of “(10.59).” However, if you are
completing the return on your computer and your software
only allows you to use parentheses to report negative
amounts, you may use them.

How Should You Make Entries on Form 945-X?

To ensure that the IRS has enough time to
process a credit for an overreporting
adjustment in the year during which you file
Form 945-X, you are encouraged to file Form 945-X
correcting the overreported amount in the first 11 months
of a year. For example, if you discover an overreported
amount in December, you may want to file Form 945-X
during the first 11 months of the next year. This should
ensure that the IRS will have enough time to process

You can help the IRS process your Form 945-X timely and
accurately if you follow these guidelines.
Type or print your entries.
Use Courier font (if possible) for all typed or
computer-generated entries.
Omit dollar signs. You may use commas and decimal
points, if desired. Enter dollar amounts to the left of any
preprinted decimal point and cents to the right of it.
Instructions for Form 945-X (Rev. 2-2014)

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(credit) shown on line 5. Do not check this box if you are
correcting any underreported amounts on this form.

Form 945-X so the credit will be posted before you file
Form 945, thus avoiding an erroneous balance due notice
from the IRS. See the example below.

You must check the box on line 2 if you have a credit
and the period of limitations on credit or refund for Form
945 will expire within 90 days of the date you file Form
945-X. See Is There a Deadline for Filing Form 945-X,
earlier.

Example—You want your overreported tax applied
as a credit to Form 945. On December 18, 2014, you
discover you overreported your tax on your 2013 Form
945 and want to choose the adjustment process. To allow
the IRS enough time to process the credit, you file Form
945-X on January 2, 2015, and take the credit on your
2015 Form 945.

The IRS usually processes claims shortly after they are
filed. IRS will notify you if your claim is denied, accepted
as filed, or selected to be examined. See Pub. 556,
Examination of Returns, Appeal Rights, and Claims for
Refund, for more information.

Specific Instructions:
Part 1: Select ONLY One Process

Unless the IRS corrects Form 945-X during processing
or you owe other taxes, penalties, or interest, IRS will
refund the amount shown on line 5, plus any interest that
applies.

Because Form 945-X may be used to file either an
adjusted return of withheld federal income tax or a claim
for refund or abatement, you must check one box on
either line 1 or line 2. Do not check both boxes.

Part 2: Enter the Corrections for the
Calendar Year You Are Correcting

1. Adjusted Return of Withheld Federal Income
Tax

What Amounts Should You Report in Part 2?

Check the box on line 1 if you are correcting
underreported amounts or overreported amounts and you
would like to use the adjustment process to correct the
errors.

In columns 1 and 2 of lines 3 and 4, show amounts for all
of your payees, not just for those payees whose amounts
you are correcting.
If a correction that you report in column 3 includes both
underreported and overreported amounts (see the
instructions for line 6), give us details for each error on
line 7.

If you are correcting both underreported amounts and
overreported amounts on this form, you must check this
box. If you check this box, any negative amount shown on
line 5 will be applied as a credit (tax deposit) to your Form
945 for the year in which you are filing this form. See
Example—You want your overreported tax applied as a
credit to Form 945 above.

You may correct federal income tax withholding errors
for prior years if the amounts shown on Form 945 do not
agree with the amounts you actually withheld, that is, an
administrative error. See section 13 of Pub. 15 (Circular E)
for more information about administrative errors.

If you owe tax. Pay the amount shown on line 5 by the
time you file Form 945-X. Generally, you will not be
charged interest if you file on time, pay on time, enter the
date you discovered the error, and explain the correction
on line 7.

If you previously adjusted or amended Form 945
using Form 945-X or because of an IRS
CAUTION
examination change, show amounts in column 2
that include those previously reported corrections.

!

If you have a credit. You overreported withheld federal
income tax (you have a negative amount on line 5) and
want the IRS to apply the credit to Form 945 for the year
during which you filed Form 945-X. The IRS will apply
your credit on the first day of that year. However, the
credit you show on line 5 of Form 945-X may not be fully
available on your Form 945 if the IRS corrects it during
processing or you owe other taxes, penalties, or interest.
The IRS will notify you if your claimed credit changes or if
the amount available as a credit on Form 945 was
reduced because of unpaid taxes, penalties, or interest.

3. Federal Income Tax Withheld

If you are correcting the federal income tax withheld you
reported on Form 945, line 1, enter the total corrected
amount for all payees in column 1. In column 2, enter the
amount you originally reported or as previously corrected.
In column 3, enter the difference between columns 1 and
2.
line 3 (column 1)
-line 3 (column 2)

Do not check the box on line 1 if you are
correcting overreported amounts and the period
CAUTION
of limitations on credit or refund for Form 945 will
expire within 90 days of the date you file Form 945-X.
Instead, check the box on line 2. See Is There a Deadline
for Filing Form 945-X, earlier.

line 3 (column 3)

!

If the amount in column 2 is larger than the
amount in column 1, use a minus sign in
column 3.

Example—Federal income tax withheld increased.
You reported $9,000 as federal income tax withheld on
line 1 of your 2012 Form 945. In July of 2013, you
discovered that you had overlooked $1,000 in federal
income tax actually withheld from one of your payees. To
correct the error, figure the difference on Form 945-X as
shown.

2. Claim

Check the box on line 2 to use the claim process if you are
correcting overreported amounts only and you are
claiming a refund or abatement for the negative amount
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Instructions for Form 945-X (Rev. 2-2014)

Read the instructions for line 3 for more
information on completing line 4. For correction
purposes, there is no distinction between federal
income tax withheld from pensions, annuities, IRAs,
gambling winnings, etc. and backup withholding.

..

Column 1 (corrected amount)
Column 2 (Form 945, line 1)

-

Column 3 (difference)

10,000.00
9,000.00

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1,000.00

Example—Federal income tax withheld decreased.
You reported $9,600 as federal income tax withheld on
line 1 of your 2012 Form 945. In December of 2013, you
discovered that you actually withheld $6,900 but reported
the higher amount due to a typographical (administrative)
error. To correct the error, figure the difference on Form
945-X as shown.

5. Total

Combine the amounts from lines 3 and 4 of column 3.
Enter the result on line 5.

..

Your credit. If the amount entered on line 5 is less than
zero, for example, “-115.00,” you have a credit because
you overreported withheld federal income tax.
If you checked the box on line 1, include this amount
on line 4 (“Total deposits”) of Form 945 for the year during
which you file Form 945-X. Do not make changes to your
Monthly Summary of Federal Tax Liability on Form 945 or
on Form 945-A. The amounts reported on the record
should reflect your actual tax liability for the period.
If you checked the box on line 2, you are filing a claim
for refund or abatement of the amount shown.
If your credit is less than $1, we will send a refund or
apply it only if you ask us in writing to do so.

Column 1 (corrected amount)
Column 2 (Form 945, line 1)
Column 3 (difference)

-

6,900.00
9,600.00
-2,700.00

Example—Failure to withhold income tax when
required. You were required to withhold $400 of federal
income tax from a new payee in December of 2012 but
withheld nothing. You discovered the error on March 15,
2013. You cannot file Form 945-X to correct your 2012
Form 945 because the error involves a previous year and
the amount previously reported for the new payee (zero)
represents the actual amount withheld from the new
payee during 2012.

Amount you owe. If the amount on line 5 is a positive
number, you must pay the amount you owe by the time
you file Form 945-X. You may not use any credit that you
show on another Form 945-X to pay for the amount you
owe, even if you filed for the amount you owe and the
credit at the same time.
Payment Methods. You may pay the amount you owe
on line 5 electronically using the Electronic Federal Tax
Payment System (EFTPS), by credit or debit card, or by
check or money order.
The preferred method of payment is EFTPS. For
information, visit www.eftps.gov, call EFTPS Customer
Service at 1-800-555-4477 or 1-800-733-4829 (TDD), or
see Pub. 966, Electronic Federal Tax Payment System: A
Guide To Getting Started.
For more information on paying by credit or debit card,
visit the IRS website at www.irs.gov/e-pay.
If you pay by check or money order, make it payable to
“United States Treasury.” On your check or money order,
be sure to write your EIN, “Form 945-X,” and the year
corrected.
You do not have to pay if the amount you owe is less
than $1.
Previously assessed FTD penalty. If line 5 reflects
overreported tax and the IRS previously assessed a
failure-to-deposit (FTD) penalty, you may be able to
reduce the penalty. For more information, see the Form
945-A instructions.

..

Example—Administrative error. You had three
payees. In 2012, you withheld $1,000 of federal income
tax from payee A, $2,000 from payee B, and $6,000 from
payee C. The total amount of federal income tax you
withheld was $9,000. You mistakenly reported $6,000 on
line 1 of your 2012 Form 945. You discovered the error on
March 15, 2013. This is an example of an administrative
error that may be corrected in a later calendar year
because the amount actually withheld from payees differs
from the amount reported on Form 945. Use Form 945-X
to correct the error. Enter $9,000 in column 1 of line 3 and
$6,000 in column 2 of line 3. Subtract the amount in
column 2 from the amount in column 1.
Column 1 (corrected amount)
Column 2 (Form 945, line 1)
Column 3 (difference)

9,000.00
- 6,000.00
3,000.00

Be sure to explain the reasons for this correction on
line 7.

4. Backup Withholding

If you are correcting the backup withholding of federal
income tax you reported on Form 945, line 2, enter the
total corrected amount in column 1. In column 2, enter the
amount you originally reported or as previously corrected.
In column 3, enter the difference between columns 1 and
2.

Part 3: Explain Your Corrections for
the Calendar Year You Are Correcting

line 4 (column 1)
-line 4 (column 2)
line 4 (column 3)

6. Correcting Both Underreported and
Overreported Amounts

If the amount in column 2 is larger than the
amount in column 1, use a minus sign in
column 3.

Instructions for Form 945-X (Rev. 2-2014)

Check the box on line 6 if any corrections you entered on
line 3 or line 4 in column 3 reflect both underreported and
overreported amounts.

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stamp, mechanical device, or computer software
program. For details and required documentation, see
Rev. Proc. 2005-39. You can find Rev. Proc. 2005-39,
2005-28 I.R.B. 82, at www.irs.gov/irb/2005-28_IRB/
ar16.html.

Example. If you had an increase to withheld income
tax of $15,000 for payee A and a decrease to withheld
income tax of $5,000 for payee B, you would enter
$10,000 on line 3, column 3. That $10,000 represents the
net change from corrections.
On line 7, you must explain the reason for both the
$15,000 increase and the $5,000 decrease.

Paid Preparer Use Only

A paid preparer must sign Form 945-X and enter the
information requested in the Paid Preparer Use Only
section of Part 4 if the preparer was paid to prepare Form
945-X and is not 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.

7. Explain Your Corrections

Treasury regulations require you to explain in detail the
grounds and facts relied upon to support each correction.
On line 7, describe in detail each correction you entered in
column 3 on lines 3 and 4. If you need more space, attach
additional sheets, but be sure to write your name, EIN,
Form 945-X, and calendar year on the top of each sheet.

If you are 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, IRS Paid
Preparer Tax Identification Number (PTIN) Application
and Renewal. For more information about applying for a
PTIN online, visit the IRS website at www.irs.gov/ptin. You
cannot use your PTIN in place of the EIN of the tax
preparation firm.

You must describe the events that caused the
underreported or overreported withheld income tax or
backup withholding. An explanation such as “withheld
income tax was overstated” is insufficient and may delay
processing your Form 945-X because the IRS may need
to ask for a more complete explanation.
Provide the following information in your explanation for
each error you are correcting.
Form 945-X line number(s) affected.
Date you discovered the error.
Difference (amount of the error).
Cause of the error.

Generally, you are not required to complete this section
if you are filing the return as a reporting agent and have a
valid Form 8655, Reporting Agent Authorization, 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 whether federal income tax
withholding is required on certain payments.

You may report the information in paragraph form. The
following paragraph is an example.
“The $1,000 difference shown in column 3 of line 3 was
discovered on May 13, 2013, during an internal audit. Due
to a typographical error, we reported $11,000 as withheld
income tax on Form 945 instead of the $10,000 actually
withheld from payees. This correction removes the $1,000
that was overreported.”

How Can You Order Forms,
Instructions, and Publications from
the IRS?

Part 4: Sign Here

Visit the IRS website at www.irs.gov/formspubs.

You must fill out both pages of Form 945-X and sign it on
page 2. If you do not sign, processing of Form 945-X will
be delayed.

Call the IRS at 1-800-TAX-FORM
(1-800-829-3676).

Who must sign the Form 945-X? Form 945-X must be
signed by a person who is authorized to sign for the 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 act.
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 income tax purposes—The owner of the
LLC or principal officer duly authorized to act.
Trust or estate—The fiduciary.
A duly authorized agent of the taxpayer may also sign
Form 945-X if a valid power of attorney has been filed.

Additional Information
You may find the following products helpful when using
Form 945-X.
Form W-4P, Withholding Certificate for Pension or
Annuity Payments
Form W-4V, Voluntary Withholding Request
Form W-9, Request for Taxpayer Identification Number
and Certification
Instructions for Forms W-2G and 5754
Instructions for Form 843
Instructions for Form 945
Form 945-A, Annual Record of Federal Tax Liability
Pub. 15 (Circular E), Employer's Tax Guide
Pub. 575, Pension and Annuity Income
Pub. 966, Electronic Federal Tax Payment System: A
Guide To Getting Started

Alternative signature method. Corporate officers or
duly authorized agents may sign Form 945-X by rubber
-6-

Instructions for Form 945-X (Rev. 2-2014)

Pub. 1281, Backup Withholding for Missing and
Incorrect Name/TIN(s)

Recordkeeping . . . . . . . . . . . . . . . . . . . . . . .
Learning about the law or the form . . . . . . . . .
Preparing and sending the form to the IRS . . . .

Paperwork Reduction Act Notice. We ask for the
information on Form 945-X to carry out the Internal
Revenue laws of the United States. You are required to
give us the information. We need it to ensure that you are
complying with these laws and to allow us to figure and
collect the right amount of tax.
You are 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 and records relating to a form or its
instructions must be retained as long as their contents
may become material in the administration of any Internal
Revenue law. Generally, tax returns and return
information are confidential, as required by section 6103.
The time needed to complete and file Form 945-X will
vary depending on individual circumstances. The
estimated average time is:

Instructions for Form 945-X (Rev. 2-2014)

5 hr., 44 min.
40 min.
1 hr., 59 min.

If you have comments concerning the accuracy of
these time estimates or suggestions for making this form
simpler, we would be happy to hear from you. You can
send us comments from www.irs.gov/formspubs. Click on
More Information and then click on Give us feedback. 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.
Do not send Form 945-X to this address. Instead, see
Where Should You File Form 945-X, earlier.

-7-

Form 945-X: Which process should you use?
Type of errors you are
correcting
Underreported
Use the adjustment process to correct underreported amounts.
amounts ONLY
Check the box on line 1.
Pay the amount you owe from line 5 by the time you file Form 945-X.
Overreported
amounts ONLY

BOTH underreported
and overreported
amounts

The process you use
depends on when you
file Form 945-X.

The process you use
depends on when you
file Form 945-X.

If you are filing Form 945-X MORE
THAN 90 days before the period
of limitations on credit or refund
for Form 945 expires . . . . . . .

Choose either the adjustment process or the claim
process to correct the overreported amounts.

If you are filing Form 945-X
WITHIN 90 DAYS of the expiration
of the period of limitations on
credit or refund for Form
945 . . . . . . . . . . . . . . . . . . .

You must use the claim process to correct the
overreported amounts. Check the box on line 2.

If you are filing Form 945-X MORE
THAN 90 days before the period
of limitations on credit or refund
for Form 945 expires . . . . . . .

Choose either the adjustment process or both the
adjustment process and the claim process when you
correct both underreported and overreported
amounts.

Choose the adjustment process if you want the
amount shown on line 5 credited to your Form 945
for the period in which you file Form 945-X. Check
the box on line 1.
OR
Choose the claim process if you want the amount
shown on line 5 refunded to you or abated. Check
the box on line 2.

Choose the adjustment process if you want to
offset your underreported amounts with your
overreported amounts.
File one Form 945-X, and
Check the box on line 1 and follow the instructions
on line 5.
OR
Choose both the adjustment process and the
claim process if you want the overreported amount
refunded to you or abated.
File two separate forms.
1. For the adjustment process, file one Form
945-X to correct the underreported amounts. Check
the box on line 1. Pay the amount you owe from
line 5 by the time you file Form 945-X.
2. For the claim process, file a second Form 945-X
to correct the overreported amounts. Check the box
on line 2.
If you are filing Form 945-X
WITHIN 90 DAYS of the expiration
of the period of limitations on
credit or refund for Form
945 . . . . . . . . . . . . . . . . . . .

-8-

You must use both the adjustment process and
the claim process.
File two separate forms.
1. For the adjustment process, file one Form 945-X
to correct the underreported amounts. Check the box
on line 1. Pay the amount you owe from line 5 by the
time you file Form 945-X.
2. For the claim process, file a second Form 945-X to
correct the overreported amounts. Check the box on
line 2.

Instructions for Form 945-X (Rev. 2-2014)