2023

Instructions for Form 945

Annual Return of Withheld Federal Income Tax

Department of the Treasury

Internal Revenue Service

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.

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. To contact EFTPS using 

Telecommunications Relay Services (TRS) for people who 

are deaf, hard of hearing, or have a speech disability, dial 

711 and then provide the TRS assistant the 800-555-4477 

number above or 800-733-4829. Additional information 

about EFTPS is also available in Pub. 966.

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 

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 

CAUTION

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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 for additional information. To 

contact EFTPS using TRS for people who are deaf, hard 

of hearing, or have a speech disability, dial 711 and then 

provide the TRS assistant the 800-555-4477 number 

above or 800-733-4829.

If you're filing your tax return or paying your federal 

taxes electronically, a valid employer 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.

CAUTION

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Sep 5, 2023 Cat. No. 20534D
Form 1099-NEC. Use Form 1099-NEC to report 

nonemployee compensation paid in 2023 and any backup 

withholding on the compensation.

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.

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.

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.

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.

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.

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.

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 Information; 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.

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.

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.

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.

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.

-2- Instructions for Form 945 (2023)
When To File

For 2023, file Form 945 by January 31, 2024. However, if 

you made deposits on time in full payment of the taxes for 

the year, you may file the return by February 12, 2024.

If we receive your return after the due date, we will treat 

your return as filed on time if the envelope containing your 

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.

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 

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.

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 Department of the Treasury 

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; 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 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).

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 

valid EIN isn't provided, the return won't be 

accepted. This may result in penalties.

Always be sure the EIN on the form you file 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 

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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.

If You Change Your Business Name, 

Business Address, or Responsible 

Party

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.

Penalties and Interest

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 

Instructions for Form 945 (2023) -3-
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.

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 

to the U.S. 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.

Voluntary Income Tax Withholding

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.

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.

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.

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 (section 7).

• 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.

CAUTION

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• Go to IRS.gov/EmploymentTaxes for additional 

information about employment taxes.

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 

deposits for Forms 941, 943, 944, or CT-1 with deposits 

for Form 945. Also, don't combine Form 945 taxes with 

taxes for Forms 941, 943, 944, or 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.

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 2023 is less than 

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

during the year.

Determining Your Deposit Schedule

There are two deposit schedules—monthly and 

semiweekly—for determining when you 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’re required to use.

For 2024, you're a monthly schedule depositor for Form 

945 if the total tax reported on your 2022 Form 945 (line 3) 

was $50,000 or less. If the total tax reported for 2022 was 

more than $50,000, you're a semiweekly schedule 

depositor.

If you're a monthly schedule depositor and 

accumulate a $100,000 liability or more on any 

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.

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.

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CAUTION

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-4- Instructions for Form 945 (2023)
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.

Changing from one form of business to another, such 

as from a sole proprietorship to a partnership or 

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.

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 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.

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.

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 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 3. Total Taxes

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 

CAUTION

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the year reported on line 7M of the Monthly Summary of 

Federal Tax Liability, or line M of Form 945-A.

Line 4. Total Deposits

Enter your total Form 945 deposits for the year, including 

any overpayment that you applied from filing Form 945-X 

in 2023, and any overpayment that you applied from your 

2022 return.

Line 5. Balance Due

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 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 

“2023” on your check or money order. Complete Form 

945-V and enclose with Form 945.

If line 3 is $2,500 or more and you deposited all taxes 

when due, the amount on line 5 should be zero.

If you didn't make deposits as required and 

instead pay the taxes with Form 945, you may be 

subject to a penalty.

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.

Line 6. Overpayment

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

Never make an entry on both lines 5 and 6.

CAUTION

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Instructions for Form 945 (2023) -5-
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 

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.

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

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.

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 2023. 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 2023 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 2023 

(and for 2024), 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.

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.

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.

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.

CAUTION

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CAUTION

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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.

Who Must Sign (Approved Roles)

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.

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, 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.

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.

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 

-6- Instructions for Form 945 (2023)
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 

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.

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.

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 territories for use 

in administering their tax laws. We may also disclose 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.

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.

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.

Instructions for Form 945 (2023) -7-