Form 945 (2019) — Paper-Filing Checklist
Purpose
Form 945, the Annual Return of Withheld Federal Income Tax, is used to report federal income tax withheld from non-payroll payments for the 2019 tax year. These payments include pensions, annuities, IRAs, retirement pay, military retirement, gambling winnings, Indian gaming profits, and amounts subject to backup withholding. Unlike Form 941, Form 943, or Form 944, IRS Form 945 does not report wage withholding. It applies only to nonpayroll taxes withheld under the Internal Revenue Code, Title 26.
Business owners, pension plan administrators, financial institutions, and other payers must reconcile withheld federal income tax with federal tax deposits made through the Electronic Federal Tax Payment System or other approved electronic funds transfer methods. Deposit rules and classifications are governed by Publication 15, Employer’s Tax Guide, and related guidance from the Internal Revenue Service.
Filing Steps
Verify Employer Identification Number and payer details
Enter your Employer Identification Number exactly as assigned by the Internal Revenue Service. The EIN must match IRS records under Section 6109 to avoid processing delays. If your EIN application is pending, write “Applied For” and include the application date. Do not use a Social Security Number or ITIN in place of an EIN. If needed, apply using Form SS-4.
Update your address only if it has changed from your prior Form 945 filing. Check the 'Address Change' box and enter your complete city, state, ZIP code, and country information. Accurate employer or payer details are essential for tax compliance and proper posting to your IRS Business Tax Account.
Complete federal income tax withholding categories.
Line 1 reports withheld federal income tax from non-payroll payments made during 2019. This includes distributions from section 401(k) and section 403(b) plans, governmental section 457(b) plans, annuities, IRAs, military retirement pay, Alaska Native Corporation distributions, and gambling winnings reported on Form W-2G. Amounts should align with information returns such as Form 1099-R, Form 1099-DIV, Form 1099-MISC, and Form 1099-NEC.
Include voluntary withholding elected by recipients, but exclude wage withholding. Wage-related exclusions must be reported on Form 941, Form 943, Form 944, or Schedule H, as applicable.
Line 2 reports backup withholding at the required rate when payees fail to provide a valid taxpayer identification number or are subject to IRS notices, as described in Publication 1281. Backup withholding applies to interest, dividends, non-employee compensation, gambling winnings, certain payments by financial institutions, Indian gaming profits, and costs incurred by some H-2A visa workers.
Calculate costs, liability, and apply the 2,500 threshold.
Add lines 1 and 2 to determine line 3 total taxes. This amount represents your annual withheld federal income tax liability. If line 3 is less than 2,500, you are not required to complete the monthly summary or file Form 945-A. If line 3 is 2,500 or more, you must reconcile liability using either the monthly summary on line 7 or Form 945-A, depending on your deposit schedule.
Determine deposit schedule classification.
Your deposit schedule for 2019 depends on your lookback period, which is calendar year 2017 for Form 945 purposes. If your 2017 Form 945, line 3, total was $ 50,000 or less, you are classified as a monthly depositor. If it exceeded 50,000, you are a semiweekly schedule depositor.
Monthly depositors who accumulate 100,000 or more in tax liability on any single day during 2019 become semiweekly depositors immediately for the remainder of the year and for subsequent taxable years. This rule is especially relevant for small to mid-sized businesses experiencing growth in non-mid-sized taxes.
Complete the monthly summary if required.
If you were a monthly depositor for the entire year and line 3 is 2,500 or more, complete line 7, columns A through L. Enter the tax liability for each month based on when payments subject to withholding were made, not when deposits were submitted. This monthly liability summary is required under Publication 15-A.
Add all monthly amounts and enter the total on line 7M. Line 7M must equal line 3 exactly. Do not complete line 7 if you were a semiweekly depositor at any time during the year.
Attach Form 945-A for semiweekly depositors.
If you were a semiweekly schedule depositor at any point during 2019, you must complete and attach Form 945-A. This form reports tax liability by payment date and replaces the monthly summary. Semiweekly depositors with total taxes of 2,500 or more must file Form 945-A even if they started the year as monthly depositors.
Record federal tax deposits
Enter all federal tax deposits made for 2019 on line 4. Include deposits made via the Electronic Federal Tax Payment System, IRS Direct Pay, or other approved electronic transactions. Paper tax deposit coupons, such as IRS Form 8109, are no longer accepted.
Also include any overpayment applied from a prior year or adjustments made using Form 945-X. Tax professionals should verify deposit confirmation numbers and amounts to avoid penalty percentages and interest charges.
Calculate the balance due or overpayment.
Subtract line 4 from line 3. If line 3 exceeds line 4, report the difference as a balance due. If line 4 exceeds line 3, report the difference as an overpayment. Enter an amount on only one line.
For overpayments, choose whether to apply the amount to your next return or request a refund. If no selection is made, the Internal Revenue Service may apply the overpayment to future tax liabilities. Balances under one dollar generally do not require payment.
Complete Form 945-V payment voucher if applicable
Use the Payment Voucher only if you are allowed to submit a payment with the return. This generally applies when total taxes are under 2,500 and paid in full with timely paper filing, or when a monthly depositor qualifies under the Accuracy of Deposits Rule.
Enter your Employer Identification Number, payment amount, and business information. Make checks payable to the United States Treasury and include your EIN, Form 945, and 2019 on the payment. Do not staple the voucher or payment to the return. Electronic balance due payments are preferred.
Sign, date, and designate a third-party designee if needed
An authorized individual must sign Form 945 under penalties of perjury in accordance with the Paperwork Reduction Act and OMB control number requirements. Paid preparers must complete the preparer section with their Preparer Tax Identification Number and firm details.
If you want to authorize a third party to discuss the return with the Internal Revenue Service, complete the Third-Party Designee section with the individual’s name, phone number, and PIN. This authorization expires one year after the filing deadline and does not allow representation before the Department of Justice or state agencies such as the Franchise Tax Board.
Filing deadline and corrections
For the 2019 tax year, the original filing deadline was January 31st, 2020. If all federal tax deposits were made on time and in full, the deadline would be extended to February 10, 2020. Electronic filing through the IRS e-file system is encouraged to reduce errors and improve workflow efficiency.
Use Form 945-X to correct errors on a previously filed return. Do not use Form 843 for Form 945 adjustments. Prompt corrections help minimize interest charges, penalties, and future tax notices.
Summary
Form 945 plays a key role in reporting withheld federal income tax from non-payroll payments. Accurate classification of deposit schedules, proper reconciliation of tax liability, and timely filing help business owners, pension administrators, and other payers remain compliant and avoid penalties. Following Publication 15 guidance and using electronic payment and filing tools supports efficient tax workflows and reliable compliance for the 2019 tax year.
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This checklist is for educational purposes only and does not constitute tax or legal advice. Always review official IRS instructions and consult a qualified professional for guidance.
