What IRS Form 945 (2019) Is For
IRS Form 945 (2019) is the annual return of withheld federal income tax for nonpayroll payments made during the tax year. Employers, corporations, and financial institutions must report withheld income from pensions, annuities, military retirement, gambling winnings, and Indian gaming profits. This annual return ensures all withheld payments are correctly documented and paid to the Internal Revenue Service.
The form verifies compliance with federal tax law and documents each filer’s total tax withheld and paid. Accurate filing prevents errors, penalties, and duplicate reporting for businesses and duly authorized agents.
Learn how to find, complete, and file Payroll & Employment Tax Forms to stay compliant with federal and state wage reporting requirements.
When You’d Use IRS Form 945 (2019)
Filing IRS Form 945 (2019) is required when businesses, corporations, or financial institutions withhold federal income tax from nonpayroll payments. These include pensions, annuities, gambling winnings, military retirement, and Indian gaming profits. Accurate reporting ensures compliance with Internal Revenue Service regulations and supports proper documentation of annual tax obligations.
Filing and Correction Situations
Entities file this annual return when an administrative error occurs or when using Form 945-X to correct a previously filed form. Timely submission ensures withheld amounts, refunds, and payments are accurately recorded, preventing balance discrepancies and interest assessments.
Key Rules or Details for 2019
Filing IRS Form 945 (2019) requires careful attention to deadlines, deposit schedules, and reporting methods. Each filer must meet Internal Revenue Service requirements to ensure withheld federal income tax from nonpayroll payments is properly deposited and recorded.
- Due Date: File the 2019 annual return by January 31, 2020, or February 10, 2020, if all deposits were made on time.
- Deposit Schedules: Monthly depositors had balances of less than $2,500, while entities with deposits exceeding $50,000 from the previous year followed a semiweekly schedule.
- Electronic Filing: Use EFTPS, the preferred method for submitting federal deposits and payments.
- Record Retention: Maintain all annual records, forms, and payment receipts for a minimum of four years for verification purposes.
Step-by-Step Guide to Filing IRS Form 945 (2019)
Filing IRS Form 945 (2019) requires accuracy and adherence to Internal Revenue Service procedures. Each filer must ensure that all withheld federal income tax from nonpayroll payments is properly calculated, recorded, and submitted. Following these four steps helps prevent delays in reporting and administrative errors.
- Step 1: Gather Records
Collect Forms 1099-R, W-2G, and other 2019 documents showing withheld income tax. Confirm all payer, payee, and taxpayer identification numbers are accurate. - Step 2: Prepare the Form
Download the 2019 version from IRS.gov, enter all withheld tax totals, and include backup withholding details where required. - Step 3: Review and Attachments
You must attach Form 945-A if you are a semiweekly depositor or if your entity has large federal tax liability balances. - Step 4: File and Submit
Sign, date, and file using EFTPS or mail to the designated Internal Revenue Service address.
Common Mistakes and How to Avoid Them
Filing IRS Form 945 2019 requires precision, and even small mistakes can lead to payment discrepancies or additional tax assessments. Understanding both the errors and their solutions helps ensure accurate filing and compliance with Internal Revenue Service requirements.
Frequent Errors and Prevention Tips
- Using the incorrect tax year form: Some filers use the wrong version of the form, resulting in rejected filings. To avoid this, always download and file the 2019 version that matches the correct reporting period.
- Mixing payroll and non-payroll payments: Many employers mistakenly combine payroll and non-payroll data, resulting in reporting errors. To prevent this issue, separate Form 941 payroll data from nonpayroll sources such as pensions or gambling winnings.
- Omitting Form 945-A: Some entities fail to include this required schedule, resulting in incomplete filings. To avoid delays, always attach Form 945-A if you are a semiweekly depositor or if your payment totals exceed the threshold.
- Reporting Incorrect Totals: Errors occur when withheld amounts or backup withholding do not match the reported totals. Always cross-check all withheld income, backup withholding, and total tax figures before submitting your return.
- Missing signatures: Unsigned forms are considered invalid and may result in processing delays. Ensure that authorized employers or duly designated agents sign every completed form before submission.
What Happens After You File IRS Form 945 (2019)
After filing IRS Form 945 (2019), the Internal Revenue Service reviews your annual return of withheld federal income tax for accuracy and payment verification. The agency generally processes filings within six to eight weeks, though late or amended returns may require additional time. Maintaining records of all payments, credits, and correspondence helps confirm that your submission was accepted.
If the IRS determines a remaining balance, you may request an IRS payment plan for employment taxes through Form 9465. Entities seeking penalty relief can file Form 843 to explain reasonable cause. Prompt responses to notices and organized documentation ensure compliance and prevent future assessments.
FAQs about IRS Form 945 (2019)
Who must file IRS Form 945 (2019)?
Employers, corporations, and entities that withheld federal income tax from nonpayroll payments such as pensions, annuities, gambling winnings, or Indian gaming profits must file this annual return. The form reports the total tax withheld and helps verify compliance with federal law.
How do I correct administrative errors on a previously filed form?
When an administrative error occurs, use Form 945-X to correct administrative errors or overpayments. The Internal Revenue Service treats this adjusted annual return as the official correction for discrepancies in reported income tax.
Can I use electronic filing for Form 945?
Yes, electronic filing through EFTPS is the preferred method for submitting payments and federal tax liability reports. Employers and duly authorized agents can also prepare the return of withheld federal income tax using an approved computer software program.
What happens if I miss the filing deadline?
Failing to file or pay federal income tax by the due date may lead to penalties, interest, and additional notices from the IRS. Employers should maintain timely filing methods and ensure that all annual records, credits, and payments are complete.
How long should I keep my annual records after filing Form 945?
Businesses must retain all forms, reports, and payment confirmations for a minimum of four years. These records verify taxpayer identification numbers, the amount of federal income tax withheld, and the total amount paid to the Internal Revenue Service for the 2019 tax year.
