What IRS Form 945 (2024) Is For

Form 945 is the Annual Return of Withheld Federal Income Tax that you must file if you withheld or were required to withhold federal income tax from nonpayroll payments during 2024. This form covers backup withholding, federal tax withheld from pensions and retirement plan distributions, military retirement, gambling winnings, Indian gaming profits, and voluntary withholding on certain government payments (IRS Instructions for Form 945 (2024)).

When You'd Use Form 945 for 2024 (Late or Amended Filing)

You'd file Form 945 late if you missed the January 31, 2025 deadline (or February 10, 2025 if you made all deposits on time). Common scenarios include receiving IRS notices about unfiled returns, discovering you had withholding obligations you didn't initially report, or realizing you owe additional taxes from nonpayroll payments. If you need to correct a previously filed Form 945, you must file Form 945-X (Adjusted Annual Return) separately to amend errors in withholding amounts or other return information (IRS Instructions for Form 945 (2024)).

Key Rules Specific to 2024

The 2024 Form 945 maintains the same filing deadlines and deposit requirements as previous years. The standard due date remains January 31, 2025, with the extension to February 10, 2025 available only if you made all required deposits timely and in full. All federal tax deposits must continue to be made electronically through EFTPS (Electronic Federal Tax Payment System), and the $2,500 threshold for annual versus periodic deposits remains unchanged for 2024 (IRS Instructions for Form 945 (2024)).

Step-by-Step (High Level)

• Gather your records: Collect account transcripts from IRS.gov, Forms 1099-R, 1099-MISC, W-2G, and deposit records to verify all nonpayroll withholding amounts
  
  
• Complete Form 945: Use the 2024 version of the form, reporting total federal income tax withheld from all nonpayroll sources during the calendar year
  
  
• Attach required schedules: Include Form 945-A if your total tax liability was $2,500 or more, showing monthly liability amounts
  
  
• Choose filing method: File electronically through approved software or mail paper returns to the address specified for your state in the instructions
  
  
• Keep copies: Retain all forms, supporting documents, and proof of filing/payment for at least four years (IRS Instructions for Form 945 (2024))
  
  

Common Mistakes and How to Avoid Them

• Using wrong EIN: Always verify your Employer Identification Number matches exactly what the IRS assigned—using your Social Security Number or another company's EIN causes processing delays and penalties
  
  
• Mixing payroll and nonpayroll: Never report wage withholding (from Forms W-2) on Form 945—this form is only for nonpayroll withholding like pensions and backup withholding
  
  
• Rounding dollar amounts: Report exact dollars and cents; don't round to whole dollars, and always show cents even if zero (like $1,250.00)
  
  
• Missing deposits: Remember that if your annual tax liability is $2,500 or more, you must make periodic deposits during the year, not just pay when filing
  
  
• Incorrect withholding calculations: Ensure amounts on Form 945 match the totals on information returns (Forms 1099) you issued to recipients
  
  
• Filing for wrong tax year: Use only the 2024 version of Form 945 for calendar year 2024 withholding, regardless of when you're actually filing (IRS Instructions for Form 945 (2024))
  
  

What Happens After You File

The IRS typically takes 4-6 weeks to process Form 945 returns filed on paper, or 2-3 weeks for electronic returns. You'll receive notices if there are questions about your return or if additional taxes, penalties, or interest are owed. If you can't pay the full amount due, you can request a payment plan using Form 9465 (Installment Agreement Request) or apply online at IRS.gov if you owe $50,000 or less. Late filing penalties are 5% of unpaid tax per month (up to 25%), while late payment penalties are 0.5% per month (up to 25%). You have appeal rights if you disagree with any IRS adjustments or penalties assessed on your account (IRS Instructions for Form 945 (2024)).

FAQs

What's the penalty for filing Form 945 late?

The failure-to-file penalty is 5% of unpaid tax for each month or part of a month the return is late, up to 25% maximum. There's also a minimum penalty of $485 if the return is more than 60 days late for 2024 returns (IRS Failure to File Penalty guidance).

Can I get my penalties removed?

Yes, if you can show reasonable cause and that the late filing wasn't due to willful neglect. Common acceptable reasons include serious illness, natural disasters, or unavoidable postal delays. You must provide documentation supporting your reasonable cause claim.

How do I get transcripts for a late filing?

Order account transcripts online at IRS.gov, by phone at 1-800-908-9946, or by mail using Form 4506-T. Transcripts show what the IRS has on file and help you prepare accurate late returns.

Is there a time limit for getting refunds from amended Form 945-X?

Generally, you have three years from the original due date of the return or two years from when you paid the tax (whichever is later) to claim a refund by filing Form 945-X.

Do I need to amend state returns too?

State requirements vary—some states automatically accept federal changes while others require separate amended filings. Check with your state tax agency about their specific procedures for employment tax adjustments.

What if I never filed Form 945 for multiple years?

File separate returns for each year you had withholding obligations, using the correct year's form for each. The IRS may have already assessed penalties and interest, but filing late returns can help limit further penalties.

Can I file Form 945 electronically for late returns?

Yes, most tax software accepts electronic filing of late returns. Electronic filing is faster and provides confirmation of receipt, which is helpful for penalty abatement requests (IRS Instructions for Form 945 (2024)).

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