What IRS Form 945 (2017) Is For
IRS Form 945 (2017) is used to report federal income tax withheld from non-payroll payments, ensuring proper compliance with tax law. It applies to income tax withheld from sources such as pensions, annuities, gambling winnings, and backup withholding. Businesses, corporations, and other entities that made these payments are responsible for filing the correct return each year.
This form separates employment taxes from non-payroll obligations to maintain transparent reporting and payment records. Every taxpayer who withholds federal income tax on non-wage income must complete and file the return to remain compliant. Filing accurately supports transparency and reduces the risk of errors in reporting withheld amounts.
Learn how to access Payroll and Employment Tax Forms for your business, report employee wages accurately, and avoid payroll tax penalties.
When You’d Use IRS Form 945 (2017)
Taxpayers and businesses use IRS Form 945 (2017) when they withheld federal income tax from non-payroll payments and must report or correct it. Completing this form helps ensure that withheld amounts from pensions, annuities, or gambling winnings are accurately reported to the IRS. It also allows filers to stay compliant with federal income tax withholding laws and avoid future notices or collection actions.
Late or Amended Filing Situations
Form 945 must be filed if a taxpayer received an IRS notice or found unreported income tax withheld from prior payments. Filing late or amended returns confirms the accuracy of federal records and reduces potential penalties or interest.
Common Reasons to File
Many filers submit the form to correct backup withholding errors, report missed payments, or address past-due balances. Proper filing keeps accounts current and ensures federal income tax withheld is accurately documented for the reporting year.
Key Rules or Details for IRS Form 945 (2017)
Understanding the key filing requirements helps taxpayers ensure compliance when reporting federal income tax withheld on non-payroll payments. Each rule supports accurate reporting, proper payment, and timely filing under IRS Form 945 (2017).
- Deposit Schedule: Monthly depositors report up to $50,000 in annual liability, while semiweekly depositors must report higher total amounts.
- Electronic Payments: All tax deposits must be submitted using the Electronic Federal Tax Payment System (EFTPS) to ensure timely processing.
- Form Accuracy: Always use the 2017 version of IRS Form 945 to ensure the submitted information aligns with official IRS record-keeping requirements.
- Record Retention: Maintain all filed forms, reports, and payment confirmations for at least four years to comply with federal recordkeeping laws.
Step-by-Step: Filing IRS Form 945 (2017)
Filing IRS Form 945 (2017) correctly ensures accurate reporting of federal income tax withheld from non-payroll payments. Each step must be completed carefully to align with IRS filing requirements and prevent delays or errors.
- Collect Records: Gather all Forms 1099, W-2G, and supporting documents that show the withheld federal income tax for the filing year.
- Obtain the Correct Form: Use the 2017 version available in the IRS prior-year forms archive to ensure accurate reporting.
- Enter Accurate Data: Include payment details for pensions, annuities, and gambling winnings to reflect all taxable amounts correctly.
- Attach Schedules: Add Form 945-A when required if you were classified as a semiweekly depositor during that year.
- Submit the Return: File the completed form electronically or mail it to the IRS address assigned to your business location.
Common Mistakes and How to Avoid Them
Filing IRS Form 945 (2017) can be complex when managing federal income tax withheld from non-payroll payments. Many taxpayers encounter errors that result in incorrect reporting or unnecessary penalties. Understanding these issues and applying corrective steps helps ensure proper compliance and timely payment.
- Incorrect Form Selection: Some filers report employment taxes on Form 945 instead of payroll forms, such as Form 941 or Form 94. Therefore, confirm that only non-payroll withholding is reported on Form 945. Learn more about common business tax problems.
- Omitted Backup Withholding: Missing withheld amounts from gambling winnings or contractor payments often cause underreporting, so include these in the total federal income tax withheld.
- Late Deposits or Filings: Payments made after the due date increase interest and penalties, so schedule EFTPS deposits early to prevent late submission.
- Form 945-X Errors: Use Form 945-X to correct previous filings and maintain supporting documentation to verify accuracy.
What Happens After You File IRS Form 945 (2017)
Filing IRS Form 945 (2017) completes your reporting of federal income tax withheld from non-payroll payments. Once the return is submitted, the IRS reviews the filing for accuracy, confirming that payment amounts match the reported deposits and that all required signatures and forms are included. Proper filing ensures your withheld federal income tax is recorded under the correct tax year.
The IRS typically processes paper filings within six to eight weeks, although additional time may be required for older returns. If taxes remain unpaid, taxpayers can apply for an IRS payment plan for employment taxes using Form 9465 or through the Online Payment Agreement system.
FAQs: Federal Income Tax Withholding and IRS Form 945 (2017)
What is IRS Form 945 (2017) used for?
IRS Form 945 (2017) is used to report federal income tax withheld from non-payroll payments such as pensions, annuities, and gambling winnings. Businesses, estates, and partnerships file this form to ensure withheld amounts are accurately reported under federal income tax law.
When is the due date to file IRS Form 945 for 2017?
The due date to file was January 31, 2018, unless timely deposits were made during the year. Filing promptly prevents additional interest, penalties, or notices from the IRS.
What types of payments are subject to federal income tax withholding?
Payments subject to federal income tax withholding include pensions, annuities, backup withholding, and gambling winnings. Each payment type requires proper reporting to ensure withheld federal income tax matches the taxpayer’s liability.
How can taxpayers correct errors on Form 945?
Taxpayers can correct errors in reporting or payment amounts using Form 945-X. Filing the correction helps ensure withheld amounts are appropriately credited and prevents additional penalties or correspondence from the IRS.
What records should be kept after filing?
Businesses and individuals should retain copies of all forms, tax withholding reports, and payment confirmations for a minimum of four years. Maintaining complete records ensures compliance and provides clear documentation in the event the IRS requests verification.
