E-File Form 945 Online for
2023 & 2022

IRS Form 945, is an annual information return used to report federal income tax withheld from nonpayroll payments. While Form 941 is used for payroll tax reporting, Form 945 is specifically designed for reporting taxes withheld from various types of non-wage income, such as pensions, gambling winnings, and backup withholding.

Form 945 must be filed by employers who withhold federal income tax from nonpayroll payments. This includes income sources such as pensions, annuities, military retirement, gambling winnings, and backup withholding. Employers who make these nonpayroll payments are required to file Form 945 annually to report the total amount of federal income tax withheld.

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The person authorized to sign Form 945 depends on the structure of the entity. For corporations, the form is usually signed by an authorized corporate officer, such as the president, vice president, or other principal officer duly authorized to sign. In partnerships, the form can be signed by a general partner. If the taxpayer is a sole proprietorship, the owner signs the form. In the case of an LLC, the member designated as the responsible party for tax purposes typically signs Form 945. It's essential to ensure that the person signing the form has the proper authority and is identified correctly.

The due date to File Form 945 for the tax year 2023 is January 31, 2024.

If you made deposits on time, in full payment of the taxes for the year, you may have time to file your Form 945 until February 10, 2024.

IRS may impose penalties for the following reasons.

• Filing Form 945 late
• Depositing taxes late

Apart from these, IRS might also impose penalties for failure to file information returns such as
1099-MISC/1099-R/W-2G or failing to send statements to the recipients.

In case you have received a penalty notice from the IRS, you can request an abatement of penalty by sending an explanation with a reasonable cause to the IRS. Don't attach an explanation when you
e-file Form 945.

Form 945-A, Annual Record of Federal Tax Liability, is used to report employment tax liabilities. An employer must file with the IRS to declare tax liabilities on all non-payroll payments made to employees. The Form 945-A is filed annually with Form 945, but the tax liabilities are deposit by month. Employers must file if they deposit tax liabilities semiweekly or if their liability for any one month is greater than $100,000.

The 945-X is used to make corrections for administrative errors on a previously filed 945 Form, Annual Return of Withheld Federal Income Tax. Form 945 reports federal withholding that has been reported on both W-2G and all the 1099 forms.