This is archived information that pertains only to the 2006 Tax Year. If you
are looking for information for the current tax year, go to the Tax Prep Help Area.
State code.
If you made your deposits using Form 8109 or by using an EFTPS bank account in a state other than that shown in your
address on Form 945, enter the
state code for the state where you made deposits or initiated EFTPS transfers in the box provided in the upper left corner
of
Form 945. Use the Postal Service two-letter state abbreviation as the state code. Enter the code “
MU” in the state code box if you deposit in
more than one state. If you deposit in the
same state as shown in your address,
do not make an entry in this box.
Line A—Final return.
If you go out of business or end operations and you will not be required to file Form 945 in the future, file a final
return. Be sure to check the
box in
line A and enter the date that final nonpayroll payments were made.
Line 1—Federal income tax withheld.
Enter the federal income tax that you withheld (or were required to withhold) from pensions (including distributions
from
governmental
section 457(b) plans), annuities, IRA distributions, military retirement, Indian gaming profits, and gambling winnings (regular
gambling withholding
only). Also enter any voluntary amount that you withheld on certain government payments. If you are required to report federal
income tax withholding
on Forms 1099 (for example, Form 1099-R or Form W-2G), you must report the federal income tax withheld on
Form 945.
Note.
Federal income tax withholding reported on
Form W-2
must be reported on Form 941, Form 943, Form 944, or Schedule H (Form 1040), as appropriate.
Line 2—Backup withholding.
Enter any backup withholding, including backup withholding on gambling winnings.
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 3—Adjustment to correct administrative errors.
You cannot make an adjustment on Form 945 to correct federal income tax withholding or backup withholding reported
in a prior calendar year
unless it is to correct an
administrative error. An administrative error occurs if the amount you entered on Form 945 is not the
amount that you actually withheld. For example, if the total federal income tax actually withheld was incorrectly reported
on Form 945 due to a math
or transposition error, this is an administrative error. The administrative error adjustment corrects the amount reported
on Form 945 to agree with
the amount actually withheld from nonpayroll payments.
You must report an adjustment to correct an administrative error on Form 945 in the year in which you discover the
error. Indicate negative
adjustments with a minus sign (if possible). Otherwise, use parentheses.
You will not be allowed a refund or credit for any prior year's overpayment of federal income tax that you withheld
from a payee. This is because
the payees use the amount of withholding shown on the information return (for example, Form 1099-R) as a credit when filing
their income tax returns.
If you are making an adjustment to correct a prior year administrative error, report the net adjustment (including
an adjustment to federal income
tax withholding
and backup withholding) on line 3. Complete Form 941c, Supporting Statement To Correct Information, or an equivalent
statement, and file it with Form 945 to provide the required information on the adjustment. Be sure to identify the adjustment
in the
Explanation
of Adjustments (Part V of Form 941c) as correcting an administrative error and provide a description of the error(s).
Do not file
Form 941c separately from Form 945.
Reporting the adjustment on line 8 or on Form 945-A.
The amount of the adjustment also must be taken into account in the Monthly Summary of Federal Tax Liability (line
8) or on Form 945-A, Annual
Record of Federal Tax Liability. If the adjustment increases your tax liability, include the adjustment with any other amount
on the entry space for
the date that you discovered the error and increase any required deposit by the adjustment amount. If the adjustment decreases
your tax liability, use
the adjustment amount as a credit to offset subsequent liabilities on line 8 or Form 945-A until it is used up. For more information,
see section 13
of Pub. 15 (Circular E). The Pub. 15 (Circular E) instructions for making adjustments refer to Form 941 but also apply to
Form 945 adjustments.
If you are not required to complete line 8 or Form 945-A because your total taxes are less than $2,500, do not show the adjustment
on line 8
or on Form 945-A.
Line 4—Total taxes.
Add lines 1 and 2 and add or subtract any net adjustment on line 3. If total taxes are $2,500 or more, the amount
reported on line 4 must equal the
total liability for the year reported on line 8M of the Monthly Summary of Federal Tax Liability, or line M of Form 945-A.
Line 5—Total deposits.
Enter your total Form 945 deposits for the year, including any overpayment applied from your 2005 return.
Line 6—Balance due.
You do not have to pay if line 6 is under $1. Generally, you should have a balance due only if your total taxes for
the year (line 4) are less than
$2,500. If you made payments under the accuracy of deposits rule, see section 11 of Pub. 15 (Circular E). Enter your EIN,
“
Form 945,” and
“
2006” on your check or money order and make it payable to the “
United States Treasury.” If line 4 is $2,500 or more and you deposited all
taxes when due, the amount on line 6 should be zero.
If you fail to make required deposits (using EFTPS or Form 8109, as required) and instead pay these amounts with your return,
you may be subject to
a penalty.
Line 7—Overpayment.
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. The IRS may apply your overpayment to any past due tax account under your EIN. If line 7 is under $1, we
will send a refund or apply
it to your next return only on written request.
Line 8—Monthly Summary of Federal Tax Liability.
This is a summary of your monthly tax liability,
not a summary of deposits made. If line 4 is less than $2,500,
do not
complete line 8
or Form 945-A.
Complete line 8
only if you were a
monthly schedule depositor for the entire year and line 4 is $2,500 or more. See
Determining your deposit schedule on page 2.
The amount entered on line 8M must equal the amount reported on line 4.
Report your liabilities on Form 945-A instead of on
line 8 if:
-
You were a semiweekly schedule depositor
during 2006. Do not complete entries A through M of
line 8. Instead, complete and file Form 945-A with
Form 945.
-
You were a monthly schedule depositor for 2006 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 2006 (and for 2007), you must report your liabilities
on
Form 945-A for the entire year. Do not complete entries A through M of line 8. For more information, see the $100,000 Next-Day
Deposit Rule in section 11 of Pub. 15 (Circular E).
Third-Party Designee.
If you want to allow any individual, corporation, firm, organization, or partnership to discuss your 2006 Form 945
with the IRS, check the
“
Yes” box in the Third-Party Designee section of Form 945. Also, enter the name, phone number, and any five numbers that the designee
chooses as
his or her personal identification number (PIN). The authorization applies only to the tax form upon which it appears.
By checking the “
Yes” box, you are
authorizing the IRS to speak with the designee to answer any questions relating to the
information reported on your tax return. You are also authorizing the designee to:
-
Exchange information concerning your tax return with the IRS and
-
Request and receive written tax return information relating to your tax return including copies of specific notices, correspondence,
and
account transcripts.
You are
not authorizing the designee to receive any refund check, bind you to anything (including additional tax liability), or
otherwise represent you before the IRS. If you want to expand the designee's authorization or desire automatic issuances of
copies of notices, see
Pub. 947, Practice Before the IRS and Power of Attorney.
The Third-Party Designee authorization is substantially equivalent to Form 8821, Tax Information Authorization, but
automatically
expires one year from the due date (without regard to extensions) for filing your 2006 Form 945. If you or your designee desire to
terminate the authorization, a written statement conveying your wish to revoke the authorization should be submitted to the
IRS service center where
the return was processed (see
Where to file (without a payment) on pages 1-2).
Who must sign.
Form 945 must be signed as follows:
-
Sole proprietorship — The individual who owns the business.
-
Corporation (including an LLC treated as a corporation) — The president, vice president, or other principal
officer.
-
Partnership (including an LLC treated as a partnership) or unincorporated organization — A responsible and duly
authorized member or officer having knowledge of its affairs.
-
Single member limited liability company (LLC) treated as a disregarded entity — The owner of the limited liability company
(LLC).
-
Trust or estate — The fiduciary.
Form 945 may also be signed by a duly authorized agent of the taxpayer if a valid power of attorney has been filed.
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. You can find Rev. Proc. 2005-39 on page 82 of Internal Revenue Bulletin 2005-28
at
http://www.unclefed.com/Tax-Bulls/2005/irb05-28.html
