Form 945-A Annual Record of Federal Tax Liability OMB No. 1545-1430 (Rev. September 2006)

Name (as shown on Form 945, CT-1, 944, or Form 944-SS) Employer identification number (EIN)

Cat. No. 14733M Form 945-A (Rev. 9-2006)

January Tax Liability

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10

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17

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A Total for month 

15

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15

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24

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30

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February Tax Liability March Tax Liability

B Total for month C Total for month 

April Tax Liability

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D Total for month 

15

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17

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24

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15

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30

15

May Tax Liability June Tax Liability

E Total for month F Total for month 

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

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Department of the Treasury

Internal Revenue Service

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Form 945-A (Rev. 9-2006) Page 2

Form 945-A (Rev. 9-2006)

July Tax Liability

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G Total for month 

15

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15

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15

August Tax Liability September Tax Liability

H Total for month I Total for month 

October Tax Liability

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30

J Total for month 

15

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3

4

5

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7

8

9

10

11

12

13

14

17

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19

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15

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15

November Tax Liability December Tax Liability

K Total for month L Total for month 

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16 16 16

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M Total tax liability for the year (add lines A through L). This should equal line 4 on Form 945 (line 13

on Form CT-1, line 9 on Form 944, or line 7 on Form 944-SS.) 

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Form 945-A (Rev. 9-2006) Page 3

General Instructions

Recordkeeping 6 hr., 27 min.

Paperwork Reduction Act Notice. We ask for the information on this

form 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.

Preparing and sending

the form to the IRS 12 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 write to the IRS at the address listed in the Privacy

Act Notice for your tax return.

The time needed to complete and file this form will vary depending on

individual circumstances. The estimated average time is:

Example 1. Cedar Co., which has a semiweekly deposit schedule, makes

periodic payments on gambling winnings on the 15th day of each month.

On December 24, 2006, in addition to its periodic payments, it withheld

from a payment on gambling winnings under the backup withholding

rules. Since Cedar Co. is a semiweekly schedule depositor, it must

record these nonpayroll withholding liabilities on Form 945-A. It must

report tax liabilities on line 15 for each month and line 24 for December.

Example 2. Fir Co. is a semiweekly schedule depositor. During January,

it withheld federal income tax on pension distributions as follows:

$52,000 on January 10; $35,000 on January 24. Since Fir Co. is a

semiweekly schedule depositor, it must record its federal income tax

withholding liabilities on Form 945-A. It must record $52,000 on line 10

and $35,000 on line 24 for January.

Example 3. Because Elm Co. is a new business, it is a monthly schedule

depositor for 2006. During January, it withheld federal income tax on

nonpayroll payments as follows: $2,000 on January 10; $99,000 on

January 24. The deposit rules require that a monthly schedule depositor

begin depositing on a semiweekly deposit schedule when a $100,000 or

more tax liability is accumulated on any day within a month (see section

11 of Pub. 15 (Circular E) for details). Since Elm Co. accumulated

$101,000 ($2,000 + $99,000) on January 24, 2006, it became a

semiweekly schedule depositor on January 25. Elm Co. must complete

Form 945-A and file it with Form 945. It must record $2,000 on line 10

and $99,000 on line 24 for January. No entries should be made on line 8

of Form 945 although Elm Co. was a monthly schedule depositor until

January 24.

Adjustments. Semiweekly schedule depositors must report adjustments

on Form 945-A to correct administrative errors for federal income tax

on Forms 945 and 944, to correct errors for taxes imposed by the

Railroad Retirement Tax Act (RRTA) on prior Forms CT-1, and to correct

errors for social security and Medicare taxes on prior Forms 944 and

944-SS. (Reminder: You will not be allowed a refund or credit for any

prior year overpayment of federal income tax that you withheld or

deducted from a payee.) For information on correcting administrative

errors, see the instructions for your tax return and section 13 of Pub. 15

(Circular E) or section 9 of Pub. 80 (Circular SS). (The Pub. 15 (Circular E)

instructions for making adjustments refer to Form 941, but they also

apply to adjustments on other employment tax returns.) If the adjustment

increases your current liability, report the adjustment on the entry space

corresponding to the date the error was discovered. Adjust your tax

deposit for the adjustment amount.

If the adjustment decreases your current liability, use the adjustment

amount as a credit to offset subsequent liabilities on Form 945-A until it

is used up. For example, on January 8, 2006, Oak Rail Co. discovered

that a mathematical error was made on a prior year return, resulting in a

$10,000 overstatement of nonpayroll federal income tax withholding.

Since the correct amounts were withheld and reported on Forms 1099-R,

this is an administrative error that can be corrected on Form 945. Oak

Rail Co. made payments subject to nonpayroll federal income tax

withholding on January 3, 10, 17, 24, and 31 and had a $5,000 tax

liability for each of those pay dates. On Form 945-A, it must report

$5,000 on line 3 for January. The adjustment for the $10,000

overstatement is used to offset the January 10 and 17 liabilities, so these

two $5,000 liabilities are not deposited or reported on Form 945-A. The

$5,000 liabilities for January 24 and 31 must be reported on lines 24 and

31 for January.

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 or 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 Code

section 6103.

Learning 6 min.

Purpose of form. Use Form 945-A to report your federal tax liability

(based on the dates payments were made or wages were paid) for the

following tax returns.

● Form 945, Annual Return of Withheld Federal Income Tax, for federal

income tax withholding on nonpayroll payments. Nonpayroll withholding

includes backup withholding and federal income tax withholding on

pensions, annuities, IRAs, Indian Gaming profits, gambling winnings, and

military retirement.

● Form CT-1, Employer’s Annual Railroad Retirement Tax Return, for

withheld Tier I and Tier II taxes.

● Form 944, Employer’s ANNUAL Federal Tax Return, for federal income

tax withheld and social security and Medicare taxes.

● Form 944-SS, Employer’s ANNUAL Federal Tax Return for American

Samoa, Guam, the Commonwealth of the Northern Mariana Islands, and

the U.S. Virgin Islands, for social security and Medicare taxes.

Forms 944-PR and 944(SP). If you are a semiweekly schedule depositor

who files Forma 944-PR, Planilla para la Declaración Federal ANUAL del

Patrono, or Forma 944(SP), Declaración Federal ANUAL de Impuestos del

Patrono o Empleador, you should use Forma 943A-PR, Registro de la

Obligación Contributiva Federal del Patrono Agrícola, to report your tax

liability.

Who must file. Semiweekly schedule depositors are required to complete

and file Form 945-A with their tax return (Form 945, CT-1, 944, or

944-SS). Do not complete this form if you are a monthly schedule

depositor, unless you accumulated a tax liability of $100,000 during any

month of the year. Monthly schedule depositors who accumulate

$100,000 become semiweekly schedule depositors for the remainder of

the year (and the next year) and must complete Form 945-A for the entire

year. The deposit rules, including the $100,000 Next-Day Deposit Rule,

are explained in section 11 of Pub. 15 (Circular E), Employer’s Tax Guide;

section 8 of Pub. 80 (Circular SS), Federal Tax Guide for Employers in the

U.S. Virgin Islands, Guam, American Samoa, and the Commonwealth of

the Northern Mariana Islands; and in the instructions for your tax return.

Caution. IRS uses Form 945-A to match the tax liability you reported on

Forms 945, CT-1, 944, or Form 944-SS with your deposits. The IRS also

uses Form 945-A to determine if you have deposited your withholding

and employment tax liabilities on time. Unless Form 945-A is properly

completed and filed (if applicable) with your federal income tax

withholding or employment tax return, the IRS may propose an

“averaged” failure-to-deposit penalty. See Deposit Penalties in section 11

of Pub. 15 (Circular E) or section 8 or Pub. 80 (Circular SS) for more

information.

If you are required to report your tax liabilities on Form 945-A as

discussed above, file it with your tax return. Each numbered space on

Form 945-A corresponds to a date during the year. Report your tax

liabilities in the spaces that correspond to the dates you made payments,

not the date tax deposits were made. For example, if you became liable

for a pension distribution on December 31, 2005, but did not make the

distribution until January 3, 2006, the federal income tax withholding

liability for the distribution must be reported on Form 945-A for 2006, on

line 3 under January Tax Liability.

Form 945 filers. Do not complete entries A through M of the Monthly

Summary of Federal Tax Liability (line 8 on Form 945). Be sure to mark

the semiweekly schedule depositor checkbox above line 8 on Form 945.

Form CT-1 filers. Do not complete the Monthly Summary of Railroad

Retirement Tax Liability (page 2 on Form CT-1).

Form 944 and 944-SS filers. Check the “Line 9 (“Line 7” on Form

944-SS) is $2,500 or more...” box in line 13, leave blank lines 13a–13m.

Complete line 14 on Form 944.

Specific Instructions

Note. Form 945-A is a report of your tax liability, not a summary of

deposits made. The IRS gets deposit data from Form 8109, Federal Tax

Deposit Coupon, or from the Electronic Federal Tax Payment System

(EFTPS). Do not file Form 945-A if your tax liability for the return period is

less than $2,500.

Cedar Co. enters the monthly totals on lines A through L. It adds these

monthly subtotals and enters the total tax liability for the year on line M.

The amount on line M should equal line 4 of Form 945.