Unfiled 2022 Form 945: How to File, Penalties, and Relief Options

Filing IRS forms on time is one of the most critical responsibilities for businesses and organizations that handle nonpayroll payments. Form 945, Annual Return of Withheld Federal Income Tax, reports federal income tax withheld from pensions, annuities, IRA distributions, gambling winnings, military retirement, and other payments. Even if you missed the deadline for the 2022 tax year, submitting an accurate return now is critical to staying compliant and avoiding escalating penalties.

Many businesses assume that only payroll taxes matter, but the IRS requires nonpayroll withholding to be reported separately. Filing Form 945 ensures that your federal tax liability is recorded correctly and that withheld taxes reach the government as the law requires. Late filers often face interest charges and multiple penalties, but the IRS also provides structured options for resolution, including installment agreements, penalty relief programs, and sometimes, settlement opportunities. Understanding these rules can help protect your organization and its responsible persons from unnecessary financial strain.

This guide will walk you through the entire process of filing an unfiled 2022 Form 945. You will learn how to determine whether you must file, how to complete each return line, where to find the correct instructions, and what penalties apply if you are late. We will also explain advanced issues such as the Trust Fund Recovery Penalty, review options for resolving tax debt, and share real-world examples. By the end, you will have a clear roadmap for filing Form 945 and resolving IRS issues confidently.

Understanding Form 945: The Basics

Form 945, officially titled the Annual Return of Withheld Federal Income Tax, is used by businesses and organizations to report federal income tax withheld from certain nonpayroll payments. This is different from payroll taxes, which are reported on Form 941. If your business withheld taxes from pensions, annuities, or other covered distributions during the calendar year, you are responsible for filing this form with the IRS. Filing ensures that your organization accurately records its federal tax liability and properly accounts for all taxes withheld. See the IRS About Form 945 page for the official form and instructions.

Form 945 vs. Form 941

The key difference between these two forms is the type of payments reported:

Form 941: This covers wages, salaries, and regular payroll withholdings.
Form 945: This applies only to nonpayroll income distributions, such as retirement plan withdrawals or certain gambling payouts.

This separation is vital because filing the wrong form may create reporting errors that require correction through an adjusted annual return, such as Form 945-X.

Who Must File Form 945?

The IRS requires filing Form 945 if you withheld or were required to withhold federal income tax on any of the following payments during the tax year:

Pensions and annuities: This includes 401(k), 403(b), and IRA distributions.
Military retirement payments: These are taxable distributions to retired service members.
Gambling winnings: This applies to winnings above the reporting threshold.
Indian gaming profits: These are distributions subject to withholding.
Alaska Native Corporation dividends: These apply when shareholders elect voluntary withholding.
Backup withholding: This applies if payees did not provide a correct taxpayer identification number.

You generally do not need to file if you had no nonpayroll payments subject to withholding during the year. However, the IRS may still expect a record of your annual return, so keeping an accurate yearly record is essential.

Why This Matters

For businesses and nonprofits, filing Form 945 is more than a compliance step—it helps avoid penalties and protects officers, partners, or employees from personal liability under certain circumstances. By filing on time and reporting the correct total taxes and withheld federal income tax, you ensure the IRS has a complete picture of your organization’s obligations for the calendar year.

Step-by-Step Filing Instructions for the 2022 Form 945

Filing Form 945 may feel complex, but breaking the process into steps makes it manageable. Use the guide below to ensure you complete form entries correctly, meet IRS rules, and avoid unnecessary penalties.

1. Determine Your Filing Requirements

Start by confirming whether you must file Form 945 for the 2022 tax year. You must file if you withheld federal income tax from nonpayroll payments, such as pensions, annuities, IRA distributions, gambling winnings, military retirement, Indian gaming profits, or certain corporate dividends. If no withholdings occurred, you generally do not file, but always verify your records before making this decision.

2. Calculate Total Tax Liability (Lines 1–3)

Line 1: Report all federal income tax withheld from applicable distributions.
Line 2: Enter the amount of backup withholding collected when payees failed to provide a taxpayer identification number.
Line 3: Add these together to calculate your total taxes.

This figure must match the amounts shown in the monthly summary section (Line 7) or, if applicable, Form 945-A for semiweekly depositors.

3. Report Deposits (Line 4)

On Line 4, enter your total deposits for 2022. This includes:

All deposits were made throughout the year
Any overpayment applied from a prior year
Adjustments made using Form 945-X (adjusted annual return)

If the IRS assigned you a deposit schedule as a monthly or semiweekly depositor, make sure deposits align with that classification.

4. Balance Due or Overpayment (Lines 5–6)

Line 5 Balance Due: If your total taxes are greater than your total deposits, you must pay the difference. Smaller balances may be sent with a payment voucher (Form 945-V).
Line 6 Overpayment: If deposits exceed your liability, you may request a refund or apply the overpayment to your next return. You cannot complete both Line 5 and Line 6.

5. Monthly Summary or Form 945-A (Line 7)

Complete the monthly summary section on Line 7 if you were a monthly depositor for the entire calendar year and your total liability was $2,500 or more. If you were a semiweekly depositor or switched schedules during the year, file Form 945-A instead.

6. Authorized Signatures

An authorized person must sign the form if it is for a sole proprietorship, and this must be the business owner.
For a corporation or LLC, the form must be signed by the president, vice president, or another authorized officer.
For a partnership or LLC, a responsible partner or member must sign the form.
For a trust or estate, the fiduciary is the one required to sign.

You may also designate a paid preparer with a preparer tax identification number (PTIN) or a third-party designee authorized to discuss the return with the IRS. Always include the signer’s title, business name, and address in the appropriate fields.

7. File Your Return

Electronic filing: The IRS strongly encourages e-filing through approved providers. If the due date falls on a legal holiday or a business day closure, file the next day.
Paper filing: Mail the form to the correct IRS location listed in the instructions, based on your state and whether a full payment is enclosed.
Retain a copy in your annual record for compliance and reference.

By carefully following these steps, you can complete Form 945, submit it correctly, and reduce the risk of penalties.

Where to Get the Correct Forms and Instructions

Finding the correct version of Form 945 is essential, especially if filing a return from a prior year, like 2022. Using the wrong form or outdated instructions can create errors that may delay processing or trigger unnecessary IRS notices. Below are the best sources for obtaining the forms you need.

IRS.gov Forms Page: The IRS maintains a dedicated page for employment-related forms, including Form 945. You can download the current year’s annual return and instructions in PDF format. This page also links to Form 945-A, Form 945-X (adjusted yearly return), and Form 945-V (payment voucher).
Archived 2022 Forms: Since you are filing a late return, you must use the 2022 version of Form 945 and its instructions. The IRS provides a prior-year forms archive to access and download the correct version. Filing the wrong tax year form can result in rejection or misapplied payments.
Phone and Mail Orders: If you prefer paper copies, call the IRS at 800-829-3676 to request forms by mail. Orders are typically processed within 10 business days, though mailing times may vary depending on your business address.
University and Academic Tax Clinics: Several accredited law schools and universities maintain comprehensive tax form libraries. For reference, institutions such as Georgetown University Law Center, NYU, and Stanford may have copies of prior-year forms. While they cannot substitute official IRS sources, they can provide reliable academic resources for research.

By using these sources, you can ensure that you have the proper forms, instructions, and supplemental documents. Locating the correct 2022 Form 945 and related materials helps you complete form entries accurately and maintain compliance with IRS filing rules.

IRS Penalties and Interest for Late Filing or Payment

Missing the due date for filing Form 945 can be costly. The IRS imposes multiple penalties and charges interest on unpaid balances. Understanding these consequences can help you take action quickly to reduce your total amount owed and avoid further complications.

Failure to File Penalty

If you fail to file Form 945 on time, the IRS assesses a penalty of 5% of the unpaid taxes per month (or part of a month) that the return is late.

The maximum penalty is 25% of the unpaid federal tax liability.
If the return is more than 60 days late, the minimum penalty is the lesser of 100% of the unpaid balance or a flat dollar amount ($485 for 2022).

Failure to Pay Penalty

If you filed the return but did not pay the full amount of your federal income tax withheld, the IRS charges a 0.5% penalty per month on the unpaid balance.

This penalty also caps at 25% of the total taxes owed.
If you set up an installment agreement, the monthly penalty may drop to 0.25%.

Failure to Deposit Penalty

Employers are required to follow the IRS-assigned deposit schedule (monthly or semiweekly). Deposits not made on time trigger escalating penalties:

2% for deposits 1–5 days late
5% for deposits 6–15 days late
10% for deposits more than 15 days late
15% if the amount remains unpaid after the IRS issues a notice and demand for payment

Interest Charges

In addition to penalties, the IRS charges interest on the unpaid tax and any penalties.

Interest is calculated daily at the federal short-term rate plus 3%.
Rates adjust quarterly so that balances may accrue at different percentages over time.
Interest continues until the full payment is made.

Example Scenario

Suppose a nonprofit failed to file its 2022 Form 945, leaving $10,000 in withheld taxes.

Failure to file penalty after 5 months: $2,500 (25% maximum)
Failure to pay penalty over 12 months: $600 (0.5% per month)
Interest charges (assuming 7% annual average): about $700

In this case, the organization would owe over $13,800 on a $10,000 liability. Taking action quickly by filing the return, arranging payment, or applying for penalty relief can minimize these costs.

Trust Fund Recovery Penalty (TFRP) Explained

The Trust Fund Recovery Penalty (TFRP) is one of a business's most serious consequences if it fails to turn over withheld taxes to the IRS. Trust fund taxes include federal income tax withheld and backup withholding amounts collected from individuals. Because these funds are considered the government’s property, the IRS imposes a penalty equal to 100% of the unpaid balance when not remitted.

Who Can Be Held Liable

The IRS may assess the TFRP against multiple people in a business, not just owners. Liability is based on who had control and responsibility for tax payments and whether they acted willfully in failing to pay. Those who may be held personally responsible include:

Corporate officers or executives, such as presidents, vice presidents, and treasurers, can be personally assessed for unpaid trust fund taxes.
Partners or LLC members who have authority over financial operations may also be held liable.
Employees who control payroll, deposits, or the organization’s checkbook can face personal responsibility.
Third parties, including bookkeepers or CPAs who had signing authority and decision-making power, may also be assessed.
Authorized agents designated to manage business funds can be held responsible if they fail to remit trust fund taxes.

How the IRS Determines Responsibility

To determine who is liable, the IRS considers:

The IRS considers whether the person had the authority to sign checks or approve payments when determining liability.
They look at who had control over business accounts and the deposit schedule.
Decision-making power regarding which creditors and expenses to pay is also a factor.
The IRS reviews whether the individual knew that withheld taxes were not being remitted.
Evidence of willful disregard, such as paying other bills before paying the IRS, is weighed heavily in determining liability.

Protection Strategies

Businesses can reduce the risk of TFRP assessments by adopting strong compliance practices:

Prioritize withheld taxes first whenever funds are limited.
Segregate trust fund taxes in a separate account to ensure they are available for deposit.
Document decisions regarding tax payments in meeting notes or accounting records.
Use a third-party designee or paid preparer only if you can verify they are current with IRS rules.
Review deposits regularly to confirm that amounts match the liabilities reported on Form 945 or Form 945-A.

The TFRP is unique because it bypasses the business and makes individuals personally liable. Officers, employees, or even outside professionals may be pursued until the full amount of the trust fund taxes is collected. Preventing problems before they arise is the best defense against this penalty.

Resolution Options for Outstanding Tax Issues

If you missed the due date for filing Form 945 or owe a balance, RS provides several ways to resolve outstanding debts. These programs help businesses and individuals manage their federal tax liabilities while staying compliant with future filing obligations.

Installment Agreements / Payment Plans

An installment agreement allows you to pay your balance over time instead of in a lump sum.

Eligibility: Businesses that owe $25,000 or less in total withheld taxes may qualify for an online application. Larger balances require additional documentation.
Application process: Apply through the IRS Online Payment Agreement tool or by calling the IRS. You will need your employer identification number (EIN), business information, bank account details, and the proposed monthly payment.
Fees and terms: Setup fees range from $31 to $225, depending on the payment method. Interest and penalties continue to accrue until the full amount is paid.
Compliance requirements: You must continue to file all future returns on time and make required deposits.

Penalty Abatement

The IRS may reduce or remove penalties if you qualify for penalty relief.

First Time Abate (FTA): Available if you have filed all required returns, paid or arranged to pay your balance, and had no penalties in the three prior years.
Reasonable Cause Relief: Granted when circumstances beyond your control prevented timely filing or payment. Examples include natural disasters or severe weather; serious illness or death of a responsible person; records destroyed by fire, theft, or casualty; or reliance on incorrect advice from a qualified authorized agent or tax professional.
How to request: Submit Form 843 or respond to an IRS notice with an explanation and supporting documentation.

Offer in Compromise (OIC)

An OIC lets you settle your federal tax liability for less than the full balance if paying in full would cause hardship.

Eligibility types: Doubt as to collectibility means you cannot pay the full balance with your income and assets. Doubt as to liability applies if you do not believe the assessed tax is correct. Effective tax administration applies when paying in full, which would be unfair due to exceptional circumstances.
Process and required forms: Submit Form 656 (OIC application). Provide Form 433-A (for individuals) or Form 433-B (for businesses) showing detailed financials. Pay a $205 application fee unless you qualify for low-income certification.
Initial payment: Typically 20% of the offer amount if proposing a lump sum.

Currently Not Collectible (CNC) Status

You may qualify for CNC status if your organization cannot pay any portion of its taxes without creating financial hardship.

When to consider: Monthly expenses exceed income, or liquidating assets would prevent business operations.
Process: Contact the IRS, provide financial information on Form 433-B, and demonstrate that paying would leave no funds for essential obligations.
Limitations: Penalties and interest continue to accrue. The IRS reviews your case periodically and may reinstate collection if your finances improve. The collection statute continues to run, generally for 10 years.

These resolution options can provide relief, but each requires careful documentation and compliance with IRS rules. Choosing the right approach depends on your financial situation, business operations, and long-term ability to pay your tax obligations.

Frequently Asked Questions (FAQs)

What happens if I miss the 2022 Form 945 deadline?

If you missed the filing deadline, you should submit your 2022 Form 945 immediately. The IRS may assess penalties and interest based on the taxes withheld and reported liability. Filing late but paying promptly can reduce charges. You may qualify for First Time Abate relief if this is your first mistake in several years.

Can I file Form 945 electronically for 2022?

Yes, the IRS accepts electronic filing of prior-year returns through approved providers. Submitting the 2022 return electronically can help avoid mailing delays and ensure faster processing. If you owe a balance, you can make a direct debit payment or use a payment voucher. Always confirm that you are using the correct tax year version of the form.

Do I need to file if I had no withholding activity?

You usually do not need to file if your business had no nonpayroll payments subject to federal withholding in 2022. However, keeping an annual record confirming no reportable transactions is essential. Sometimes, the IRS may still expect a return, so review your business information and confirm with a tax professional if uncertain.

How much are penalties and interest for a late Form 945?

Penalties vary depending on the situation. The failure to file penalty is generally 5% per month up to 25% of the federal tax liability, while the failure to pay penalty is 0.5% per month. Late deposits may add 2–15% more. The IRS also charges daily compounding interest until the full payment is received and processed.

Who can be held personally liable for Form 945 taxes?

The IRS may apply the Trust Fund Recovery Penalty if withheld federal taxes are not paid. Liability can extend to business officers, partners, employees, or an authorized agent controlling deposits. Even a paid preparer or bookkeeper with authority may be at risk. The IRS looks at responsibility, authority, and willfulness when determining whether someone is personally liable.

Frequently Asked Questions

Unfiled 2022 Form 945: How to File, Penalties, and Relief Options

Filing IRS forms on time is one of the most critical responsibilities for businesses and organizations that handle nonpayroll payments. Form 945, Annual Return of Withheld Federal Income Tax, reports federal income tax withheld from pensions, annuities, IRA distributions, gambling winnings, military retirement, and other payments. Even if you missed the deadline for the 2022 tax year, submitting an accurate return now is critical to staying compliant and avoiding escalating penalties.

Many businesses assume that only payroll taxes matter, but the IRS requires nonpayroll withholding to be reported separately. Filing Form 945 ensures that your federal tax liability is recorded correctly and that withheld taxes reach the government as the law requires. Late filers often face interest charges and multiple penalties, but the IRS also provides structured options for resolution, including installment agreements, penalty relief programs, and sometimes, settlement opportunities. Understanding these rules can help protect your organization and its responsible persons from unnecessary financial strain.

This guide will walk you through the entire process of filing an unfiled 2022 Form 945. You will learn how to determine whether you must file, how to complete each return line, where to find the correct instructions, and what penalties apply if you are late. We will also explain advanced issues such as the Trust Fund Recovery Penalty, review options for resolving tax debt, and share real-world examples. By the end, you will have a clear roadmap for filing Form 945 and resolving IRS issues confidently.

Understanding Form 945: The Basics

Form 945, officially titled the Annual Return of Withheld Federal Income Tax, is used by businesses and organizations to report federal income tax withheld from certain nonpayroll payments. This is different from payroll taxes, which are reported on Form 941. If your business withheld taxes from pensions, annuities, or other covered distributions during the calendar year, you are responsible for filing this form with the IRS. Filing ensures that your organization accurately records its federal tax liability and properly accounts for all taxes withheld. See the IRS About Form 945 page for the official form and instructions.

Form 945 vs. Form 941

The key difference between these two forms is the type of payments reported:

Form 941: This covers wages, salaries, and regular payroll withholdings.
Form 945: This applies only to nonpayroll income distributions, such as retirement plan withdrawals or certain gambling payouts.

This separation is vital because filing the wrong form may create reporting errors that require correction through an adjusted annual return, such as Form 945-X.

Who Must File Form 945?

The IRS requires filing Form 945 if you withheld or were required to withhold federal income tax on any of the following payments during the tax year:

Pensions and annuities: This includes 401(k), 403(b), and IRA distributions.
Military retirement payments: These are taxable distributions to retired service members.
Gambling winnings: This applies to winnings above the reporting threshold.
Indian gaming profits: These are distributions subject to withholding.
Alaska Native Corporation dividends: These apply when shareholders elect voluntary withholding.
Backup withholding: This applies if payees did not provide a correct taxpayer identification number.

You generally do not need to file if you had no nonpayroll payments subject to withholding during the year. However, the IRS may still expect a record of your annual return, so keeping an accurate yearly record is essential.

Why This Matters

For businesses and nonprofits, filing Form 945 is more than a compliance step—it helps avoid penalties and protects officers, partners, or employees from personal liability under certain circumstances. By filing on time and reporting the correct total taxes and withheld federal income tax, you ensure the IRS has a complete picture of your organization’s obligations for the calendar year.

Step-by-Step Filing Instructions for the 2022 Form 945

Filing Form 945 may feel complex, but breaking the process into steps makes it manageable. Use the guide below to ensure you complete form entries correctly, meet IRS rules, and avoid unnecessary penalties.

1. Determine Your Filing Requirements

Start by confirming whether you must file Form 945 for the 2022 tax year. You must file if you withheld federal income tax from nonpayroll payments, such as pensions, annuities, IRA distributions, gambling winnings, military retirement, Indian gaming profits, or certain corporate dividends. If no withholdings occurred, you generally do not file, but always verify your records before making this decision.

2. Calculate Total Tax Liability (Lines 1–3)

Line 1: Report all federal income tax withheld from applicable distributions.
Line 2: Enter the amount of backup withholding collected when payees failed to provide a taxpayer identification number.
Line 3: Add these together to calculate your total taxes.

This figure must match the amounts shown in the monthly summary section (Line 7) or, if applicable, Form 945-A for semiweekly depositors.

3. Report Deposits (Line 4)

On Line 4, enter your total deposits for 2022. This includes:

All deposits were made throughout the year
Any overpayment applied from a prior year
Adjustments made using Form 945-X (adjusted annual return)

If the IRS assigned you a deposit schedule as a monthly or semiweekly depositor, make sure deposits align with that classification.

4. Balance Due or Overpayment (Lines 5–6)

Line 5 Balance Due: If your total taxes are greater than your total deposits, you must pay the difference. Smaller balances may be sent with a payment voucher (Form 945-V).
Line 6 Overpayment: If deposits exceed your liability, you may request a refund or apply the overpayment to your next return. You cannot complete both Line 5 and Line 6.

5. Monthly Summary or Form 945-A (Line 7)

Complete the monthly summary section on Line 7 if you were a monthly depositor for the entire calendar year and your total liability was $2,500 or more. If you were a semiweekly depositor or switched schedules during the year, file Form 945-A instead.

6. Authorized Signatures

An authorized person must sign the form if it is for a sole proprietorship, and this must be the business owner.
For a corporation or LLC, the form must be signed by the president, vice president, or another authorized officer.
For a partnership or LLC, a responsible partner or member must sign the form.
For a trust or estate, the fiduciary is the one required to sign.

You may also designate a paid preparer with a preparer tax identification number (PTIN) or a third-party designee authorized to discuss the return with the IRS. Always include the signer’s title, business name, and address in the appropriate fields.

7. File Your Return

Electronic filing: The IRS strongly encourages e-filing through approved providers. If the due date falls on a legal holiday or a business day closure, file the next day.
Paper filing: Mail the form to the correct IRS location listed in the instructions, based on your state and whether a full payment is enclosed.
Retain a copy in your annual record for compliance and reference.

By carefully following these steps, you can complete Form 945, submit it correctly, and reduce the risk of penalties.

Where to Get the Correct Forms and Instructions

Finding the correct version of Form 945 is essential, especially if filing a return from a prior year, like 2022. Using the wrong form or outdated instructions can create errors that may delay processing or trigger unnecessary IRS notices. Below are the best sources for obtaining the forms you need.

IRS.gov Forms Page: The IRS maintains a dedicated page for employment-related forms, including Form 945. You can download the current year’s annual return and instructions in PDF format. This page also links to Form 945-A, Form 945-X (adjusted yearly return), and Form 945-V (payment voucher).
Archived 2022 Forms: Since you are filing a late return, you must use the 2022 version of Form 945 and its instructions. The IRS provides a prior-year forms archive to access and download the correct version. Filing the wrong tax year form can result in rejection or misapplied payments.
Phone and Mail Orders: If you prefer paper copies, call the IRS at 800-829-3676 to request forms by mail. Orders are typically processed within 10 business days, though mailing times may vary depending on your business address.
University and Academic Tax Clinics: Several accredited law schools and universities maintain comprehensive tax form libraries. For reference, institutions such as Georgetown University Law Center, NYU, and Stanford may have copies of prior-year forms. While they cannot substitute official IRS sources, they can provide reliable academic resources for research.

By using these sources, you can ensure that you have the proper forms, instructions, and supplemental documents. Locating the correct 2022 Form 945 and related materials helps you complete form entries accurately and maintain compliance with IRS filing rules.

IRS Penalties and Interest for Late Filing or Payment

Missing the due date for filing Form 945 can be costly. The IRS imposes multiple penalties and charges interest on unpaid balances. Understanding these consequences can help you take action quickly to reduce your total amount owed and avoid further complications.

Failure to File Penalty

If you fail to file Form 945 on time, the IRS assesses a penalty of 5% of the unpaid taxes per month (or part of a month) that the return is late.

The maximum penalty is 25% of the unpaid federal tax liability.
If the return is more than 60 days late, the minimum penalty is the lesser of 100% of the unpaid balance or a flat dollar amount ($485 for 2022).

Failure to Pay Penalty

If you filed the return but did not pay the full amount of your federal income tax withheld, the IRS charges a 0.5% penalty per month on the unpaid balance.

This penalty also caps at 25% of the total taxes owed.
If you set up an installment agreement, the monthly penalty may drop to 0.25%.

Failure to Deposit Penalty

Employers are required to follow the IRS-assigned deposit schedule (monthly or semiweekly). Deposits not made on time trigger escalating penalties:

2% for deposits 1–5 days late
5% for deposits 6–15 days late
10% for deposits more than 15 days late
15% if the amount remains unpaid after the IRS issues a notice and demand for payment

Interest Charges

In addition to penalties, the IRS charges interest on the unpaid tax and any penalties.

Interest is calculated daily at the federal short-term rate plus 3%.
Rates adjust quarterly so that balances may accrue at different percentages over time.
Interest continues until the full payment is made.

Example Scenario

Suppose a nonprofit failed to file its 2022 Form 945, leaving $10,000 in withheld taxes.

Failure to file penalty after 5 months: $2,500 (25% maximum)
Failure to pay penalty over 12 months: $600 (0.5% per month)
Interest charges (assuming 7% annual average): about $700

In this case, the organization would owe over $13,800 on a $10,000 liability. Taking action quickly by filing the return, arranging payment, or applying for penalty relief can minimize these costs.

Trust Fund Recovery Penalty (TFRP) Explained

The Trust Fund Recovery Penalty (TFRP) is one of a business's most serious consequences if it fails to turn over withheld taxes to the IRS. Trust fund taxes include federal income tax withheld and backup withholding amounts collected from individuals. Because these funds are considered the government’s property, the IRS imposes a penalty equal to 100% of the unpaid balance when not remitted.

Who Can Be Held Liable

The IRS may assess the TFRP against multiple people in a business, not just owners. Liability is based on who had control and responsibility for tax payments and whether they acted willfully in failing to pay. Those who may be held personally responsible include:

Corporate officers or executives, such as presidents, vice presidents, and treasurers, can be personally assessed for unpaid trust fund taxes.
Partners or LLC members who have authority over financial operations may also be held liable.
Employees who control payroll, deposits, or the organization’s checkbook can face personal responsibility.
Third parties, including bookkeepers or CPAs who had signing authority and decision-making power, may also be assessed.
Authorized agents designated to manage business funds can be held responsible if they fail to remit trust fund taxes.

How the IRS Determines Responsibility

To determine who is liable, the IRS considers:

The IRS considers whether the person had the authority to sign checks or approve payments when determining liability.
They look at who had control over business accounts and the deposit schedule.
Decision-making power regarding which creditors and expenses to pay is also a factor.
The IRS reviews whether the individual knew that withheld taxes were not being remitted.
Evidence of willful disregard, such as paying other bills before paying the IRS, is weighed heavily in determining liability.

Protection Strategies

Businesses can reduce the risk of TFRP assessments by adopting strong compliance practices:

Prioritize withheld taxes first whenever funds are limited.
Segregate trust fund taxes in a separate account to ensure they are available for deposit.
Document decisions regarding tax payments in meeting notes or accounting records.
Use a third-party designee or paid preparer only if you can verify they are current with IRS rules.
Review deposits regularly to confirm that amounts match the liabilities reported on Form 945 or Form 945-A.

The TFRP is unique because it bypasses the business and makes individuals personally liable. Officers, employees, or even outside professionals may be pursued until the full amount of the trust fund taxes is collected. Preventing problems before they arise is the best defense against this penalty.

Resolution Options for Outstanding Tax Issues

If you missed the due date for filing Form 945 or owe a balance, RS provides several ways to resolve outstanding debts. These programs help businesses and individuals manage their federal tax liabilities while staying compliant with future filing obligations.

Installment Agreements / Payment Plans

An installment agreement allows you to pay your balance over time instead of in a lump sum.

Eligibility: Businesses that owe $25,000 or less in total withheld taxes may qualify for an online application. Larger balances require additional documentation.
Application process: Apply through the IRS Online Payment Agreement tool or by calling the IRS. You will need your employer identification number (EIN), business information, bank account details, and the proposed monthly payment.
Fees and terms: Setup fees range from $31 to $225, depending on the payment method. Interest and penalties continue to accrue until the full amount is paid.
Compliance requirements: You must continue to file all future returns on time and make required deposits.

Penalty Abatement

The IRS may reduce or remove penalties if you qualify for penalty relief.

First Time Abate (FTA): Available if you have filed all required returns, paid or arranged to pay your balance, and had no penalties in the three prior years.
Reasonable Cause Relief: Granted when circumstances beyond your control prevented timely filing or payment. Examples include natural disasters or severe weather; serious illness or death of a responsible person; records destroyed by fire, theft, or casualty; or reliance on incorrect advice from a qualified authorized agent or tax professional.
How to request: Submit Form 843 or respond to an IRS notice with an explanation and supporting documentation.

Offer in Compromise (OIC)

An OIC lets you settle your federal tax liability for less than the full balance if paying in full would cause hardship.

Eligibility types: Doubt as to collectibility means you cannot pay the full balance with your income and assets. Doubt as to liability applies if you do not believe the assessed tax is correct. Effective tax administration applies when paying in full, which would be unfair due to exceptional circumstances.
Process and required forms: Submit Form 656 (OIC application). Provide Form 433-A (for individuals) or Form 433-B (for businesses) showing detailed financials. Pay a $205 application fee unless you qualify for low-income certification.
Initial payment: Typically 20% of the offer amount if proposing a lump sum.

Currently Not Collectible (CNC) Status

You may qualify for CNC status if your organization cannot pay any portion of its taxes without creating financial hardship.

When to consider: Monthly expenses exceed income, or liquidating assets would prevent business operations.
Process: Contact the IRS, provide financial information on Form 433-B, and demonstrate that paying would leave no funds for essential obligations.
Limitations: Penalties and interest continue to accrue. The IRS reviews your case periodically and may reinstate collection if your finances improve. The collection statute continues to run, generally for 10 years.

These resolution options can provide relief, but each requires careful documentation and compliance with IRS rules. Choosing the right approach depends on your financial situation, business operations, and long-term ability to pay your tax obligations.

Frequently Asked Questions (FAQs)

What happens if I miss the 2022 Form 945 deadline?

If you missed the filing deadline, you should submit your 2022 Form 945 immediately. The IRS may assess penalties and interest based on the taxes withheld and reported liability. Filing late but paying promptly can reduce charges. You may qualify for First Time Abate relief if this is your first mistake in several years.

Can I file Form 945 electronically for 2022?

Yes, the IRS accepts electronic filing of prior-year returns through approved providers. Submitting the 2022 return electronically can help avoid mailing delays and ensure faster processing. If you owe a balance, you can make a direct debit payment or use a payment voucher. Always confirm that you are using the correct tax year version of the form.

Do I need to file if I had no withholding activity?

You usually do not need to file if your business had no nonpayroll payments subject to federal withholding in 2022. However, keeping an annual record confirming no reportable transactions is essential. Sometimes, the IRS may still expect a return, so review your business information and confirm with a tax professional if uncertain.

How much are penalties and interest for a late Form 945?

Penalties vary depending on the situation. The failure to file penalty is generally 5% per month up to 25% of the federal tax liability, while the failure to pay penalty is 0.5% per month. Late deposits may add 2–15% more. The IRS also charges daily compounding interest until the full payment is received and processed.

Who can be held personally liable for Form 945 taxes?

The IRS may apply the Trust Fund Recovery Penalty if withheld federal taxes are not paid. Liability can extend to business officers, partners, employees, or an authorized agent controlling deposits. Even a paid preparer or bookkeeper with authority may be at risk. The IRS looks at responsibility, authority, and willfulness when determining whether someone is personally liable.

Frequently Asked Questions

Unfiled Returns by Year & Form Type

Unfiled 2022 Form 945: How to File, Penalties, and Relief Options

Filing IRS forms on time is one of the most critical responsibilities for businesses and organizations that handle nonpayroll payments. Form 945, Annual Return of Withheld Federal Income Tax, reports federal income tax withheld from pensions, annuities, IRA distributions, gambling winnings, military retirement, and other payments. Even if you missed the deadline for the 2022 tax year, submitting an accurate return now is critical to staying compliant and avoiding escalating penalties.

Many businesses assume that only payroll taxes matter, but the IRS requires nonpayroll withholding to be reported separately. Filing Form 945 ensures that your federal tax liability is recorded correctly and that withheld taxes reach the government as the law requires. Late filers often face interest charges and multiple penalties, but the IRS also provides structured options for resolution, including installment agreements, penalty relief programs, and sometimes, settlement opportunities. Understanding these rules can help protect your organization and its responsible persons from unnecessary financial strain.

This guide will walk you through the entire process of filing an unfiled 2022 Form 945. You will learn how to determine whether you must file, how to complete each return line, where to find the correct instructions, and what penalties apply if you are late. We will also explain advanced issues such as the Trust Fund Recovery Penalty, review options for resolving tax debt, and share real-world examples. By the end, you will have a clear roadmap for filing Form 945 and resolving IRS issues confidently.

Understanding Form 945: The Basics

Form 945, officially titled the Annual Return of Withheld Federal Income Tax, is used by businesses and organizations to report federal income tax withheld from certain nonpayroll payments. This is different from payroll taxes, which are reported on Form 941. If your business withheld taxes from pensions, annuities, or other covered distributions during the calendar year, you are responsible for filing this form with the IRS. Filing ensures that your organization accurately records its federal tax liability and properly accounts for all taxes withheld. See the IRS About Form 945 page for the official form and instructions.

Form 945 vs. Form 941

The key difference between these two forms is the type of payments reported:

Form 941: This covers wages, salaries, and regular payroll withholdings.
Form 945: This applies only to nonpayroll income distributions, such as retirement plan withdrawals or certain gambling payouts.

This separation is vital because filing the wrong form may create reporting errors that require correction through an adjusted annual return, such as Form 945-X.

Who Must File Form 945?

The IRS requires filing Form 945 if you withheld or were required to withhold federal income tax on any of the following payments during the tax year:

Pensions and annuities: This includes 401(k), 403(b), and IRA distributions.
Military retirement payments: These are taxable distributions to retired service members.
Gambling winnings: This applies to winnings above the reporting threshold.
Indian gaming profits: These are distributions subject to withholding.
Alaska Native Corporation dividends: These apply when shareholders elect voluntary withholding.
Backup withholding: This applies if payees did not provide a correct taxpayer identification number.

You generally do not need to file if you had no nonpayroll payments subject to withholding during the year. However, the IRS may still expect a record of your annual return, so keeping an accurate yearly record is essential.

Why This Matters

For businesses and nonprofits, filing Form 945 is more than a compliance step—it helps avoid penalties and protects officers, partners, or employees from personal liability under certain circumstances. By filing on time and reporting the correct total taxes and withheld federal income tax, you ensure the IRS has a complete picture of your organization’s obligations for the calendar year.

Step-by-Step Filing Instructions for the 2022 Form 945

Filing Form 945 may feel complex, but breaking the process into steps makes it manageable. Use the guide below to ensure you complete form entries correctly, meet IRS rules, and avoid unnecessary penalties.

1. Determine Your Filing Requirements

Start by confirming whether you must file Form 945 for the 2022 tax year. You must file if you withheld federal income tax from nonpayroll payments, such as pensions, annuities, IRA distributions, gambling winnings, military retirement, Indian gaming profits, or certain corporate dividends. If no withholdings occurred, you generally do not file, but always verify your records before making this decision.

2. Calculate Total Tax Liability (Lines 1–3)

Line 1: Report all federal income tax withheld from applicable distributions.
Line 2: Enter the amount of backup withholding collected when payees failed to provide a taxpayer identification number.
Line 3: Add these together to calculate your total taxes.

This figure must match the amounts shown in the monthly summary section (Line 7) or, if applicable, Form 945-A for semiweekly depositors.

3. Report Deposits (Line 4)

On Line 4, enter your total deposits for 2022. This includes:

All deposits were made throughout the year
Any overpayment applied from a prior year
Adjustments made using Form 945-X (adjusted annual return)

If the IRS assigned you a deposit schedule as a monthly or semiweekly depositor, make sure deposits align with that classification.

4. Balance Due or Overpayment (Lines 5–6)

Line 5 Balance Due: If your total taxes are greater than your total deposits, you must pay the difference. Smaller balances may be sent with a payment voucher (Form 945-V).
Line 6 Overpayment: If deposits exceed your liability, you may request a refund or apply the overpayment to your next return. You cannot complete both Line 5 and Line 6.

5. Monthly Summary or Form 945-A (Line 7)

Complete the monthly summary section on Line 7 if you were a monthly depositor for the entire calendar year and your total liability was $2,500 or more. If you were a semiweekly depositor or switched schedules during the year, file Form 945-A instead.

6. Authorized Signatures

An authorized person must sign the form if it is for a sole proprietorship, and this must be the business owner.
For a corporation or LLC, the form must be signed by the president, vice president, or another authorized officer.
For a partnership or LLC, a responsible partner or member must sign the form.
For a trust or estate, the fiduciary is the one required to sign.

You may also designate a paid preparer with a preparer tax identification number (PTIN) or a third-party designee authorized to discuss the return with the IRS. Always include the signer’s title, business name, and address in the appropriate fields.

7. File Your Return

Electronic filing: The IRS strongly encourages e-filing through approved providers. If the due date falls on a legal holiday or a business day closure, file the next day.
Paper filing: Mail the form to the correct IRS location listed in the instructions, based on your state and whether a full payment is enclosed.
Retain a copy in your annual record for compliance and reference.

By carefully following these steps, you can complete Form 945, submit it correctly, and reduce the risk of penalties.

Where to Get the Correct Forms and Instructions

Finding the correct version of Form 945 is essential, especially if filing a return from a prior year, like 2022. Using the wrong form or outdated instructions can create errors that may delay processing or trigger unnecessary IRS notices. Below are the best sources for obtaining the forms you need.

IRS.gov Forms Page: The IRS maintains a dedicated page for employment-related forms, including Form 945. You can download the current year’s annual return and instructions in PDF format. This page also links to Form 945-A, Form 945-X (adjusted yearly return), and Form 945-V (payment voucher).
Archived 2022 Forms: Since you are filing a late return, you must use the 2022 version of Form 945 and its instructions. The IRS provides a prior-year forms archive to access and download the correct version. Filing the wrong tax year form can result in rejection or misapplied payments.
Phone and Mail Orders: If you prefer paper copies, call the IRS at 800-829-3676 to request forms by mail. Orders are typically processed within 10 business days, though mailing times may vary depending on your business address.
University and Academic Tax Clinics: Several accredited law schools and universities maintain comprehensive tax form libraries. For reference, institutions such as Georgetown University Law Center, NYU, and Stanford may have copies of prior-year forms. While they cannot substitute official IRS sources, they can provide reliable academic resources for research.

By using these sources, you can ensure that you have the proper forms, instructions, and supplemental documents. Locating the correct 2022 Form 945 and related materials helps you complete form entries accurately and maintain compliance with IRS filing rules.

IRS Penalties and Interest for Late Filing or Payment

Missing the due date for filing Form 945 can be costly. The IRS imposes multiple penalties and charges interest on unpaid balances. Understanding these consequences can help you take action quickly to reduce your total amount owed and avoid further complications.

Failure to File Penalty

If you fail to file Form 945 on time, the IRS assesses a penalty of 5% of the unpaid taxes per month (or part of a month) that the return is late.

The maximum penalty is 25% of the unpaid federal tax liability.
If the return is more than 60 days late, the minimum penalty is the lesser of 100% of the unpaid balance or a flat dollar amount ($485 for 2022).

Failure to Pay Penalty

If you filed the return but did not pay the full amount of your federal income tax withheld, the IRS charges a 0.5% penalty per month on the unpaid balance.

This penalty also caps at 25% of the total taxes owed.
If you set up an installment agreement, the monthly penalty may drop to 0.25%.

Failure to Deposit Penalty

Employers are required to follow the IRS-assigned deposit schedule (monthly or semiweekly). Deposits not made on time trigger escalating penalties:

2% for deposits 1–5 days late
5% for deposits 6–15 days late
10% for deposits more than 15 days late
15% if the amount remains unpaid after the IRS issues a notice and demand for payment

Interest Charges

In addition to penalties, the IRS charges interest on the unpaid tax and any penalties.

Interest is calculated daily at the federal short-term rate plus 3%.
Rates adjust quarterly so that balances may accrue at different percentages over time.
Interest continues until the full payment is made.

Example Scenario

Suppose a nonprofit failed to file its 2022 Form 945, leaving $10,000 in withheld taxes.

Failure to file penalty after 5 months: $2,500 (25% maximum)
Failure to pay penalty over 12 months: $600 (0.5% per month)
Interest charges (assuming 7% annual average): about $700

In this case, the organization would owe over $13,800 on a $10,000 liability. Taking action quickly by filing the return, arranging payment, or applying for penalty relief can minimize these costs.

Trust Fund Recovery Penalty (TFRP) Explained

The Trust Fund Recovery Penalty (TFRP) is one of a business's most serious consequences if it fails to turn over withheld taxes to the IRS. Trust fund taxes include federal income tax withheld and backup withholding amounts collected from individuals. Because these funds are considered the government’s property, the IRS imposes a penalty equal to 100% of the unpaid balance when not remitted.

Who Can Be Held Liable

The IRS may assess the TFRP against multiple people in a business, not just owners. Liability is based on who had control and responsibility for tax payments and whether they acted willfully in failing to pay. Those who may be held personally responsible include:

Corporate officers or executives, such as presidents, vice presidents, and treasurers, can be personally assessed for unpaid trust fund taxes.
Partners or LLC members who have authority over financial operations may also be held liable.
Employees who control payroll, deposits, or the organization’s checkbook can face personal responsibility.
Third parties, including bookkeepers or CPAs who had signing authority and decision-making power, may also be assessed.
Authorized agents designated to manage business funds can be held responsible if they fail to remit trust fund taxes.

How the IRS Determines Responsibility

To determine who is liable, the IRS considers:

The IRS considers whether the person had the authority to sign checks or approve payments when determining liability.
They look at who had control over business accounts and the deposit schedule.
Decision-making power regarding which creditors and expenses to pay is also a factor.
The IRS reviews whether the individual knew that withheld taxes were not being remitted.
Evidence of willful disregard, such as paying other bills before paying the IRS, is weighed heavily in determining liability.

Protection Strategies

Businesses can reduce the risk of TFRP assessments by adopting strong compliance practices:

Prioritize withheld taxes first whenever funds are limited.
Segregate trust fund taxes in a separate account to ensure they are available for deposit.
Document decisions regarding tax payments in meeting notes or accounting records.
Use a third-party designee or paid preparer only if you can verify they are current with IRS rules.
Review deposits regularly to confirm that amounts match the liabilities reported on Form 945 or Form 945-A.

The TFRP is unique because it bypasses the business and makes individuals personally liable. Officers, employees, or even outside professionals may be pursued until the full amount of the trust fund taxes is collected. Preventing problems before they arise is the best defense against this penalty.

Resolution Options for Outstanding Tax Issues

If you missed the due date for filing Form 945 or owe a balance, RS provides several ways to resolve outstanding debts. These programs help businesses and individuals manage their federal tax liabilities while staying compliant with future filing obligations.

Installment Agreements / Payment Plans

An installment agreement allows you to pay your balance over time instead of in a lump sum.

Eligibility: Businesses that owe $25,000 or less in total withheld taxes may qualify for an online application. Larger balances require additional documentation.
Application process: Apply through the IRS Online Payment Agreement tool or by calling the IRS. You will need your employer identification number (EIN), business information, bank account details, and the proposed monthly payment.
Fees and terms: Setup fees range from $31 to $225, depending on the payment method. Interest and penalties continue to accrue until the full amount is paid.
Compliance requirements: You must continue to file all future returns on time and make required deposits.

Penalty Abatement

The IRS may reduce or remove penalties if you qualify for penalty relief.

First Time Abate (FTA): Available if you have filed all required returns, paid or arranged to pay your balance, and had no penalties in the three prior years.
Reasonable Cause Relief: Granted when circumstances beyond your control prevented timely filing or payment. Examples include natural disasters or severe weather; serious illness or death of a responsible person; records destroyed by fire, theft, or casualty; or reliance on incorrect advice from a qualified authorized agent or tax professional.
How to request: Submit Form 843 or respond to an IRS notice with an explanation and supporting documentation.

Offer in Compromise (OIC)

An OIC lets you settle your federal tax liability for less than the full balance if paying in full would cause hardship.

Eligibility types: Doubt as to collectibility means you cannot pay the full balance with your income and assets. Doubt as to liability applies if you do not believe the assessed tax is correct. Effective tax administration applies when paying in full, which would be unfair due to exceptional circumstances.
Process and required forms: Submit Form 656 (OIC application). Provide Form 433-A (for individuals) or Form 433-B (for businesses) showing detailed financials. Pay a $205 application fee unless you qualify for low-income certification.
Initial payment: Typically 20% of the offer amount if proposing a lump sum.

Currently Not Collectible (CNC) Status

You may qualify for CNC status if your organization cannot pay any portion of its taxes without creating financial hardship.

When to consider: Monthly expenses exceed income, or liquidating assets would prevent business operations.
Process: Contact the IRS, provide financial information on Form 433-B, and demonstrate that paying would leave no funds for essential obligations.
Limitations: Penalties and interest continue to accrue. The IRS reviews your case periodically and may reinstate collection if your finances improve. The collection statute continues to run, generally for 10 years.

These resolution options can provide relief, but each requires careful documentation and compliance with IRS rules. Choosing the right approach depends on your financial situation, business operations, and long-term ability to pay your tax obligations.

Frequently Asked Questions (FAQs)

What happens if I miss the 2022 Form 945 deadline?

If you missed the filing deadline, you should submit your 2022 Form 945 immediately. The IRS may assess penalties and interest based on the taxes withheld and reported liability. Filing late but paying promptly can reduce charges. You may qualify for First Time Abate relief if this is your first mistake in several years.

Can I file Form 945 electronically for 2022?

Yes, the IRS accepts electronic filing of prior-year returns through approved providers. Submitting the 2022 return electronically can help avoid mailing delays and ensure faster processing. If you owe a balance, you can make a direct debit payment or use a payment voucher. Always confirm that you are using the correct tax year version of the form.

Do I need to file if I had no withholding activity?

You usually do not need to file if your business had no nonpayroll payments subject to federal withholding in 2022. However, keeping an annual record confirming no reportable transactions is essential. Sometimes, the IRS may still expect a return, so review your business information and confirm with a tax professional if uncertain.

How much are penalties and interest for a late Form 945?

Penalties vary depending on the situation. The failure to file penalty is generally 5% per month up to 25% of the federal tax liability, while the failure to pay penalty is 0.5% per month. Late deposits may add 2–15% more. The IRS also charges daily compounding interest until the full payment is received and processed.

Who can be held personally liable for Form 945 taxes?

The IRS may apply the Trust Fund Recovery Penalty if withheld federal taxes are not paid. Liability can extend to business officers, partners, employees, or an authorized agent controlling deposits. Even a paid preparer or bookkeeper with authority may be at risk. The IRS looks at responsibility, authority, and willfulness when determining whether someone is personally liable.

Frequently Asked Questions

Unfiled 2022 Form 945: How to File, Penalties, and Relief Options

Filing IRS forms on time is one of the most critical responsibilities for businesses and organizations that handle nonpayroll payments. Form 945, Annual Return of Withheld Federal Income Tax, reports federal income tax withheld from pensions, annuities, IRA distributions, gambling winnings, military retirement, and other payments. Even if you missed the deadline for the 2022 tax year, submitting an accurate return now is critical to staying compliant and avoiding escalating penalties.

Many businesses assume that only payroll taxes matter, but the IRS requires nonpayroll withholding to be reported separately. Filing Form 945 ensures that your federal tax liability is recorded correctly and that withheld taxes reach the government as the law requires. Late filers often face interest charges and multiple penalties, but the IRS also provides structured options for resolution, including installment agreements, penalty relief programs, and sometimes, settlement opportunities. Understanding these rules can help protect your organization and its responsible persons from unnecessary financial strain.

This guide will walk you through the entire process of filing an unfiled 2022 Form 945. You will learn how to determine whether you must file, how to complete each return line, where to find the correct instructions, and what penalties apply if you are late. We will also explain advanced issues such as the Trust Fund Recovery Penalty, review options for resolving tax debt, and share real-world examples. By the end, you will have a clear roadmap for filing Form 945 and resolving IRS issues confidently.

Understanding Form 945: The Basics

Form 945, officially titled the Annual Return of Withheld Federal Income Tax, is used by businesses and organizations to report federal income tax withheld from certain nonpayroll payments. This is different from payroll taxes, which are reported on Form 941. If your business withheld taxes from pensions, annuities, or other covered distributions during the calendar year, you are responsible for filing this form with the IRS. Filing ensures that your organization accurately records its federal tax liability and properly accounts for all taxes withheld. See the IRS About Form 945 page for the official form and instructions.

Form 945 vs. Form 941

The key difference between these two forms is the type of payments reported:

Form 941: This covers wages, salaries, and regular payroll withholdings.
Form 945: This applies only to nonpayroll income distributions, such as retirement plan withdrawals or certain gambling payouts.

This separation is vital because filing the wrong form may create reporting errors that require correction through an adjusted annual return, such as Form 945-X.

Who Must File Form 945?

The IRS requires filing Form 945 if you withheld or were required to withhold federal income tax on any of the following payments during the tax year:

Pensions and annuities: This includes 401(k), 403(b), and IRA distributions.
Military retirement payments: These are taxable distributions to retired service members.
Gambling winnings: This applies to winnings above the reporting threshold.
Indian gaming profits: These are distributions subject to withholding.
Alaska Native Corporation dividends: These apply when shareholders elect voluntary withholding.
Backup withholding: This applies if payees did not provide a correct taxpayer identification number.

You generally do not need to file if you had no nonpayroll payments subject to withholding during the year. However, the IRS may still expect a record of your annual return, so keeping an accurate yearly record is essential.

Why This Matters

For businesses and nonprofits, filing Form 945 is more than a compliance step—it helps avoid penalties and protects officers, partners, or employees from personal liability under certain circumstances. By filing on time and reporting the correct total taxes and withheld federal income tax, you ensure the IRS has a complete picture of your organization’s obligations for the calendar year.

Step-by-Step Filing Instructions for the 2022 Form 945

Filing Form 945 may feel complex, but breaking the process into steps makes it manageable. Use the guide below to ensure you complete form entries correctly, meet IRS rules, and avoid unnecessary penalties.

1. Determine Your Filing Requirements

Start by confirming whether you must file Form 945 for the 2022 tax year. You must file if you withheld federal income tax from nonpayroll payments, such as pensions, annuities, IRA distributions, gambling winnings, military retirement, Indian gaming profits, or certain corporate dividends. If no withholdings occurred, you generally do not file, but always verify your records before making this decision.

2. Calculate Total Tax Liability (Lines 1–3)

Line 1: Report all federal income tax withheld from applicable distributions.
Line 2: Enter the amount of backup withholding collected when payees failed to provide a taxpayer identification number.
Line 3: Add these together to calculate your total taxes.

This figure must match the amounts shown in the monthly summary section (Line 7) or, if applicable, Form 945-A for semiweekly depositors.

3. Report Deposits (Line 4)

On Line 4, enter your total deposits for 2022. This includes:

All deposits were made throughout the year
Any overpayment applied from a prior year
Adjustments made using Form 945-X (adjusted annual return)

If the IRS assigned you a deposit schedule as a monthly or semiweekly depositor, make sure deposits align with that classification.

4. Balance Due or Overpayment (Lines 5–6)

Line 5 Balance Due: If your total taxes are greater than your total deposits, you must pay the difference. Smaller balances may be sent with a payment voucher (Form 945-V).
Line 6 Overpayment: If deposits exceed your liability, you may request a refund or apply the overpayment to your next return. You cannot complete both Line 5 and Line 6.

5. Monthly Summary or Form 945-A (Line 7)

Complete the monthly summary section on Line 7 if you were a monthly depositor for the entire calendar year and your total liability was $2,500 or more. If you were a semiweekly depositor or switched schedules during the year, file Form 945-A instead.

6. Authorized Signatures

An authorized person must sign the form if it is for a sole proprietorship, and this must be the business owner.
For a corporation or LLC, the form must be signed by the president, vice president, or another authorized officer.
For a partnership or LLC, a responsible partner or member must sign the form.
For a trust or estate, the fiduciary is the one required to sign.

You may also designate a paid preparer with a preparer tax identification number (PTIN) or a third-party designee authorized to discuss the return with the IRS. Always include the signer’s title, business name, and address in the appropriate fields.

7. File Your Return

Electronic filing: The IRS strongly encourages e-filing through approved providers. If the due date falls on a legal holiday or a business day closure, file the next day.
Paper filing: Mail the form to the correct IRS location listed in the instructions, based on your state and whether a full payment is enclosed.
Retain a copy in your annual record for compliance and reference.

By carefully following these steps, you can complete Form 945, submit it correctly, and reduce the risk of penalties.

Where to Get the Correct Forms and Instructions

Finding the correct version of Form 945 is essential, especially if filing a return from a prior year, like 2022. Using the wrong form or outdated instructions can create errors that may delay processing or trigger unnecessary IRS notices. Below are the best sources for obtaining the forms you need.

IRS.gov Forms Page: The IRS maintains a dedicated page for employment-related forms, including Form 945. You can download the current year’s annual return and instructions in PDF format. This page also links to Form 945-A, Form 945-X (adjusted yearly return), and Form 945-V (payment voucher).
Archived 2022 Forms: Since you are filing a late return, you must use the 2022 version of Form 945 and its instructions. The IRS provides a prior-year forms archive to access and download the correct version. Filing the wrong tax year form can result in rejection or misapplied payments.
Phone and Mail Orders: If you prefer paper copies, call the IRS at 800-829-3676 to request forms by mail. Orders are typically processed within 10 business days, though mailing times may vary depending on your business address.
University and Academic Tax Clinics: Several accredited law schools and universities maintain comprehensive tax form libraries. For reference, institutions such as Georgetown University Law Center, NYU, and Stanford may have copies of prior-year forms. While they cannot substitute official IRS sources, they can provide reliable academic resources for research.

By using these sources, you can ensure that you have the proper forms, instructions, and supplemental documents. Locating the correct 2022 Form 945 and related materials helps you complete form entries accurately and maintain compliance with IRS filing rules.

IRS Penalties and Interest for Late Filing or Payment

Missing the due date for filing Form 945 can be costly. The IRS imposes multiple penalties and charges interest on unpaid balances. Understanding these consequences can help you take action quickly to reduce your total amount owed and avoid further complications.

Failure to File Penalty

If you fail to file Form 945 on time, the IRS assesses a penalty of 5% of the unpaid taxes per month (or part of a month) that the return is late.

The maximum penalty is 25% of the unpaid federal tax liability.
If the return is more than 60 days late, the minimum penalty is the lesser of 100% of the unpaid balance or a flat dollar amount ($485 for 2022).

Failure to Pay Penalty

If you filed the return but did not pay the full amount of your federal income tax withheld, the IRS charges a 0.5% penalty per month on the unpaid balance.

This penalty also caps at 25% of the total taxes owed.
If you set up an installment agreement, the monthly penalty may drop to 0.25%.

Failure to Deposit Penalty

Employers are required to follow the IRS-assigned deposit schedule (monthly or semiweekly). Deposits not made on time trigger escalating penalties:

2% for deposits 1–5 days late
5% for deposits 6–15 days late
10% for deposits more than 15 days late
15% if the amount remains unpaid after the IRS issues a notice and demand for payment

Interest Charges

In addition to penalties, the IRS charges interest on the unpaid tax and any penalties.

Interest is calculated daily at the federal short-term rate plus 3%.
Rates adjust quarterly so that balances may accrue at different percentages over time.
Interest continues until the full payment is made.

Example Scenario

Suppose a nonprofit failed to file its 2022 Form 945, leaving $10,000 in withheld taxes.

Failure to file penalty after 5 months: $2,500 (25% maximum)
Failure to pay penalty over 12 months: $600 (0.5% per month)
Interest charges (assuming 7% annual average): about $700

In this case, the organization would owe over $13,800 on a $10,000 liability. Taking action quickly by filing the return, arranging payment, or applying for penalty relief can minimize these costs.

Trust Fund Recovery Penalty (TFRP) Explained

The Trust Fund Recovery Penalty (TFRP) is one of a business's most serious consequences if it fails to turn over withheld taxes to the IRS. Trust fund taxes include federal income tax withheld and backup withholding amounts collected from individuals. Because these funds are considered the government’s property, the IRS imposes a penalty equal to 100% of the unpaid balance when not remitted.

Who Can Be Held Liable

The IRS may assess the TFRP against multiple people in a business, not just owners. Liability is based on who had control and responsibility for tax payments and whether they acted willfully in failing to pay. Those who may be held personally responsible include:

Corporate officers or executives, such as presidents, vice presidents, and treasurers, can be personally assessed for unpaid trust fund taxes.
Partners or LLC members who have authority over financial operations may also be held liable.
Employees who control payroll, deposits, or the organization’s checkbook can face personal responsibility.
Third parties, including bookkeepers or CPAs who had signing authority and decision-making power, may also be assessed.
Authorized agents designated to manage business funds can be held responsible if they fail to remit trust fund taxes.

How the IRS Determines Responsibility

To determine who is liable, the IRS considers:

The IRS considers whether the person had the authority to sign checks or approve payments when determining liability.
They look at who had control over business accounts and the deposit schedule.
Decision-making power regarding which creditors and expenses to pay is also a factor.
The IRS reviews whether the individual knew that withheld taxes were not being remitted.
Evidence of willful disregard, such as paying other bills before paying the IRS, is weighed heavily in determining liability.

Protection Strategies

Businesses can reduce the risk of TFRP assessments by adopting strong compliance practices:

Prioritize withheld taxes first whenever funds are limited.
Segregate trust fund taxes in a separate account to ensure they are available for deposit.
Document decisions regarding tax payments in meeting notes or accounting records.
Use a third-party designee or paid preparer only if you can verify they are current with IRS rules.
Review deposits regularly to confirm that amounts match the liabilities reported on Form 945 or Form 945-A.

The TFRP is unique because it bypasses the business and makes individuals personally liable. Officers, employees, or even outside professionals may be pursued until the full amount of the trust fund taxes is collected. Preventing problems before they arise is the best defense against this penalty.

Resolution Options for Outstanding Tax Issues

If you missed the due date for filing Form 945 or owe a balance, RS provides several ways to resolve outstanding debts. These programs help businesses and individuals manage their federal tax liabilities while staying compliant with future filing obligations.

Installment Agreements / Payment Plans

An installment agreement allows you to pay your balance over time instead of in a lump sum.

Eligibility: Businesses that owe $25,000 or less in total withheld taxes may qualify for an online application. Larger balances require additional documentation.
Application process: Apply through the IRS Online Payment Agreement tool or by calling the IRS. You will need your employer identification number (EIN), business information, bank account details, and the proposed monthly payment.
Fees and terms: Setup fees range from $31 to $225, depending on the payment method. Interest and penalties continue to accrue until the full amount is paid.
Compliance requirements: You must continue to file all future returns on time and make required deposits.

Penalty Abatement

The IRS may reduce or remove penalties if you qualify for penalty relief.

First Time Abate (FTA): Available if you have filed all required returns, paid or arranged to pay your balance, and had no penalties in the three prior years.
Reasonable Cause Relief: Granted when circumstances beyond your control prevented timely filing or payment. Examples include natural disasters or severe weather; serious illness or death of a responsible person; records destroyed by fire, theft, or casualty; or reliance on incorrect advice from a qualified authorized agent or tax professional.
How to request: Submit Form 843 or respond to an IRS notice with an explanation and supporting documentation.

Offer in Compromise (OIC)

An OIC lets you settle your federal tax liability for less than the full balance if paying in full would cause hardship.

Eligibility types: Doubt as to collectibility means you cannot pay the full balance with your income and assets. Doubt as to liability applies if you do not believe the assessed tax is correct. Effective tax administration applies when paying in full, which would be unfair due to exceptional circumstances.
Process and required forms: Submit Form 656 (OIC application). Provide Form 433-A (for individuals) or Form 433-B (for businesses) showing detailed financials. Pay a $205 application fee unless you qualify for low-income certification.
Initial payment: Typically 20% of the offer amount if proposing a lump sum.

Currently Not Collectible (CNC) Status

You may qualify for CNC status if your organization cannot pay any portion of its taxes without creating financial hardship.

When to consider: Monthly expenses exceed income, or liquidating assets would prevent business operations.
Process: Contact the IRS, provide financial information on Form 433-B, and demonstrate that paying would leave no funds for essential obligations.
Limitations: Penalties and interest continue to accrue. The IRS reviews your case periodically and may reinstate collection if your finances improve. The collection statute continues to run, generally for 10 years.

These resolution options can provide relief, but each requires careful documentation and compliance with IRS rules. Choosing the right approach depends on your financial situation, business operations, and long-term ability to pay your tax obligations.

Frequently Asked Questions (FAQs)

What happens if I miss the 2022 Form 945 deadline?

If you missed the filing deadline, you should submit your 2022 Form 945 immediately. The IRS may assess penalties and interest based on the taxes withheld and reported liability. Filing late but paying promptly can reduce charges. You may qualify for First Time Abate relief if this is your first mistake in several years.

Can I file Form 945 electronically for 2022?

Yes, the IRS accepts electronic filing of prior-year returns through approved providers. Submitting the 2022 return electronically can help avoid mailing delays and ensure faster processing. If you owe a balance, you can make a direct debit payment or use a payment voucher. Always confirm that you are using the correct tax year version of the form.

Do I need to file if I had no withholding activity?

You usually do not need to file if your business had no nonpayroll payments subject to federal withholding in 2022. However, keeping an annual record confirming no reportable transactions is essential. Sometimes, the IRS may still expect a return, so review your business information and confirm with a tax professional if uncertain.

How much are penalties and interest for a late Form 945?

Penalties vary depending on the situation. The failure to file penalty is generally 5% per month up to 25% of the federal tax liability, while the failure to pay penalty is 0.5% per month. Late deposits may add 2–15% more. The IRS also charges daily compounding interest until the full payment is received and processed.

Who can be held personally liable for Form 945 taxes?

The IRS may apply the Trust Fund Recovery Penalty if withheld federal taxes are not paid. Liability can extend to business officers, partners, employees, or an authorized agent controlling deposits. Even a paid preparer or bookkeeper with authority may be at risk. The IRS looks at responsibility, authority, and willfulness when determining whether someone is personally liable.

Frequently Asked Questions

Unfiled 2022 Form 945: How to File, Penalties, and Relief Options

Heading

Filing IRS forms on time is one of the most critical responsibilities for businesses and organizations that handle nonpayroll payments. Form 945, Annual Return of Withheld Federal Income Tax, reports federal income tax withheld from pensions, annuities, IRA distributions, gambling winnings, military retirement, and other payments. Even if you missed the deadline for the 2022 tax year, submitting an accurate return now is critical to staying compliant and avoiding escalating penalties.

Many businesses assume that only payroll taxes matter, but the IRS requires nonpayroll withholding to be reported separately. Filing Form 945 ensures that your federal tax liability is recorded correctly and that withheld taxes reach the government as the law requires. Late filers often face interest charges and multiple penalties, but the IRS also provides structured options for resolution, including installment agreements, penalty relief programs, and sometimes, settlement opportunities. Understanding these rules can help protect your organization and its responsible persons from unnecessary financial strain.

This guide will walk you through the entire process of filing an unfiled 2022 Form 945. You will learn how to determine whether you must file, how to complete each return line, where to find the correct instructions, and what penalties apply if you are late. We will also explain advanced issues such as the Trust Fund Recovery Penalty, review options for resolving tax debt, and share real-world examples. By the end, you will have a clear roadmap for filing Form 945 and resolving IRS issues confidently.

Understanding Form 945: The Basics

Form 945, officially titled the Annual Return of Withheld Federal Income Tax, is used by businesses and organizations to report federal income tax withheld from certain nonpayroll payments. This is different from payroll taxes, which are reported on Form 941. If your business withheld taxes from pensions, annuities, or other covered distributions during the calendar year, you are responsible for filing this form with the IRS. Filing ensures that your organization accurately records its federal tax liability and properly accounts for all taxes withheld. See the IRS About Form 945 page for the official form and instructions.

Form 945 vs. Form 941

The key difference between these two forms is the type of payments reported:

Form 941: This covers wages, salaries, and regular payroll withholdings.
Form 945: This applies only to nonpayroll income distributions, such as retirement plan withdrawals or certain gambling payouts.

This separation is vital because filing the wrong form may create reporting errors that require correction through an adjusted annual return, such as Form 945-X.

Who Must File Form 945?

The IRS requires filing Form 945 if you withheld or were required to withhold federal income tax on any of the following payments during the tax year:

Pensions and annuities: This includes 401(k), 403(b), and IRA distributions.
Military retirement payments: These are taxable distributions to retired service members.
Gambling winnings: This applies to winnings above the reporting threshold.
Indian gaming profits: These are distributions subject to withholding.
Alaska Native Corporation dividends: These apply when shareholders elect voluntary withholding.
Backup withholding: This applies if payees did not provide a correct taxpayer identification number.

You generally do not need to file if you had no nonpayroll payments subject to withholding during the year. However, the IRS may still expect a record of your annual return, so keeping an accurate yearly record is essential.

Why This Matters

For businesses and nonprofits, filing Form 945 is more than a compliance step—it helps avoid penalties and protects officers, partners, or employees from personal liability under certain circumstances. By filing on time and reporting the correct total taxes and withheld federal income tax, you ensure the IRS has a complete picture of your organization’s obligations for the calendar year.

Step-by-Step Filing Instructions for the 2022 Form 945

Filing Form 945 may feel complex, but breaking the process into steps makes it manageable. Use the guide below to ensure you complete form entries correctly, meet IRS rules, and avoid unnecessary penalties.

1. Determine Your Filing Requirements

Start by confirming whether you must file Form 945 for the 2022 tax year. You must file if you withheld federal income tax from nonpayroll payments, such as pensions, annuities, IRA distributions, gambling winnings, military retirement, Indian gaming profits, or certain corporate dividends. If no withholdings occurred, you generally do not file, but always verify your records before making this decision.

2. Calculate Total Tax Liability (Lines 1–3)

Line 1: Report all federal income tax withheld from applicable distributions.
Line 2: Enter the amount of backup withholding collected when payees failed to provide a taxpayer identification number.
Line 3: Add these together to calculate your total taxes.

This figure must match the amounts shown in the monthly summary section (Line 7) or, if applicable, Form 945-A for semiweekly depositors.

3. Report Deposits (Line 4)

On Line 4, enter your total deposits for 2022. This includes:

All deposits were made throughout the year
Any overpayment applied from a prior year
Adjustments made using Form 945-X (adjusted annual return)

If the IRS assigned you a deposit schedule as a monthly or semiweekly depositor, make sure deposits align with that classification.

4. Balance Due or Overpayment (Lines 5–6)

Line 5 Balance Due: If your total taxes are greater than your total deposits, you must pay the difference. Smaller balances may be sent with a payment voucher (Form 945-V).
Line 6 Overpayment: If deposits exceed your liability, you may request a refund or apply the overpayment to your next return. You cannot complete both Line 5 and Line 6.

5. Monthly Summary or Form 945-A (Line 7)

Complete the monthly summary section on Line 7 if you were a monthly depositor for the entire calendar year and your total liability was $2,500 or more. If you were a semiweekly depositor or switched schedules during the year, file Form 945-A instead.

6. Authorized Signatures

An authorized person must sign the form if it is for a sole proprietorship, and this must be the business owner.
For a corporation or LLC, the form must be signed by the president, vice president, or another authorized officer.
For a partnership or LLC, a responsible partner or member must sign the form.
For a trust or estate, the fiduciary is the one required to sign.

You may also designate a paid preparer with a preparer tax identification number (PTIN) or a third-party designee authorized to discuss the return with the IRS. Always include the signer’s title, business name, and address in the appropriate fields.

7. File Your Return

Electronic filing: The IRS strongly encourages e-filing through approved providers. If the due date falls on a legal holiday or a business day closure, file the next day.
Paper filing: Mail the form to the correct IRS location listed in the instructions, based on your state and whether a full payment is enclosed.
Retain a copy in your annual record for compliance and reference.

By carefully following these steps, you can complete Form 945, submit it correctly, and reduce the risk of penalties.

Where to Get the Correct Forms and Instructions

Finding the correct version of Form 945 is essential, especially if filing a return from a prior year, like 2022. Using the wrong form or outdated instructions can create errors that may delay processing or trigger unnecessary IRS notices. Below are the best sources for obtaining the forms you need.

IRS.gov Forms Page: The IRS maintains a dedicated page for employment-related forms, including Form 945. You can download the current year’s annual return and instructions in PDF format. This page also links to Form 945-A, Form 945-X (adjusted yearly return), and Form 945-V (payment voucher).
Archived 2022 Forms: Since you are filing a late return, you must use the 2022 version of Form 945 and its instructions. The IRS provides a prior-year forms archive to access and download the correct version. Filing the wrong tax year form can result in rejection or misapplied payments.
Phone and Mail Orders: If you prefer paper copies, call the IRS at 800-829-3676 to request forms by mail. Orders are typically processed within 10 business days, though mailing times may vary depending on your business address.
University and Academic Tax Clinics: Several accredited law schools and universities maintain comprehensive tax form libraries. For reference, institutions such as Georgetown University Law Center, NYU, and Stanford may have copies of prior-year forms. While they cannot substitute official IRS sources, they can provide reliable academic resources for research.

By using these sources, you can ensure that you have the proper forms, instructions, and supplemental documents. Locating the correct 2022 Form 945 and related materials helps you complete form entries accurately and maintain compliance with IRS filing rules.

IRS Penalties and Interest for Late Filing or Payment

Missing the due date for filing Form 945 can be costly. The IRS imposes multiple penalties and charges interest on unpaid balances. Understanding these consequences can help you take action quickly to reduce your total amount owed and avoid further complications.

Failure to File Penalty

If you fail to file Form 945 on time, the IRS assesses a penalty of 5% of the unpaid taxes per month (or part of a month) that the return is late.

The maximum penalty is 25% of the unpaid federal tax liability.
If the return is more than 60 days late, the minimum penalty is the lesser of 100% of the unpaid balance or a flat dollar amount ($485 for 2022).

Failure to Pay Penalty

If you filed the return but did not pay the full amount of your federal income tax withheld, the IRS charges a 0.5% penalty per month on the unpaid balance.

This penalty also caps at 25% of the total taxes owed.
If you set up an installment agreement, the monthly penalty may drop to 0.25%.

Failure to Deposit Penalty

Employers are required to follow the IRS-assigned deposit schedule (monthly or semiweekly). Deposits not made on time trigger escalating penalties:

2% for deposits 1–5 days late
5% for deposits 6–15 days late
10% for deposits more than 15 days late
15% if the amount remains unpaid after the IRS issues a notice and demand for payment

Interest Charges

In addition to penalties, the IRS charges interest on the unpaid tax and any penalties.

Interest is calculated daily at the federal short-term rate plus 3%.
Rates adjust quarterly so that balances may accrue at different percentages over time.
Interest continues until the full payment is made.

Example Scenario

Suppose a nonprofit failed to file its 2022 Form 945, leaving $10,000 in withheld taxes.

Failure to file penalty after 5 months: $2,500 (25% maximum)
Failure to pay penalty over 12 months: $600 (0.5% per month)
Interest charges (assuming 7% annual average): about $700

In this case, the organization would owe over $13,800 on a $10,000 liability. Taking action quickly by filing the return, arranging payment, or applying for penalty relief can minimize these costs.

Trust Fund Recovery Penalty (TFRP) Explained

The Trust Fund Recovery Penalty (TFRP) is one of a business's most serious consequences if it fails to turn over withheld taxes to the IRS. Trust fund taxes include federal income tax withheld and backup withholding amounts collected from individuals. Because these funds are considered the government’s property, the IRS imposes a penalty equal to 100% of the unpaid balance when not remitted.

Who Can Be Held Liable

The IRS may assess the TFRP against multiple people in a business, not just owners. Liability is based on who had control and responsibility for tax payments and whether they acted willfully in failing to pay. Those who may be held personally responsible include:

Corporate officers or executives, such as presidents, vice presidents, and treasurers, can be personally assessed for unpaid trust fund taxes.
Partners or LLC members who have authority over financial operations may also be held liable.
Employees who control payroll, deposits, or the organization’s checkbook can face personal responsibility.
Third parties, including bookkeepers or CPAs who had signing authority and decision-making power, may also be assessed.
Authorized agents designated to manage business funds can be held responsible if they fail to remit trust fund taxes.

How the IRS Determines Responsibility

To determine who is liable, the IRS considers:

The IRS considers whether the person had the authority to sign checks or approve payments when determining liability.
They look at who had control over business accounts and the deposit schedule.
Decision-making power regarding which creditors and expenses to pay is also a factor.
The IRS reviews whether the individual knew that withheld taxes were not being remitted.
Evidence of willful disregard, such as paying other bills before paying the IRS, is weighed heavily in determining liability.

Protection Strategies

Businesses can reduce the risk of TFRP assessments by adopting strong compliance practices:

Prioritize withheld taxes first whenever funds are limited.
Segregate trust fund taxes in a separate account to ensure they are available for deposit.
Document decisions regarding tax payments in meeting notes or accounting records.
Use a third-party designee or paid preparer only if you can verify they are current with IRS rules.
Review deposits regularly to confirm that amounts match the liabilities reported on Form 945 or Form 945-A.

The TFRP is unique because it bypasses the business and makes individuals personally liable. Officers, employees, or even outside professionals may be pursued until the full amount of the trust fund taxes is collected. Preventing problems before they arise is the best defense against this penalty.

Resolution Options for Outstanding Tax Issues

If you missed the due date for filing Form 945 or owe a balance, RS provides several ways to resolve outstanding debts. These programs help businesses and individuals manage their federal tax liabilities while staying compliant with future filing obligations.

Installment Agreements / Payment Plans

An installment agreement allows you to pay your balance over time instead of in a lump sum.

Eligibility: Businesses that owe $25,000 or less in total withheld taxes may qualify for an online application. Larger balances require additional documentation.
Application process: Apply through the IRS Online Payment Agreement tool or by calling the IRS. You will need your employer identification number (EIN), business information, bank account details, and the proposed monthly payment.
Fees and terms: Setup fees range from $31 to $225, depending on the payment method. Interest and penalties continue to accrue until the full amount is paid.
Compliance requirements: You must continue to file all future returns on time and make required deposits.

Penalty Abatement

The IRS may reduce or remove penalties if you qualify for penalty relief.

First Time Abate (FTA): Available if you have filed all required returns, paid or arranged to pay your balance, and had no penalties in the three prior years.
Reasonable Cause Relief: Granted when circumstances beyond your control prevented timely filing or payment. Examples include natural disasters or severe weather; serious illness or death of a responsible person; records destroyed by fire, theft, or casualty; or reliance on incorrect advice from a qualified authorized agent or tax professional.
How to request: Submit Form 843 or respond to an IRS notice with an explanation and supporting documentation.

Offer in Compromise (OIC)

An OIC lets you settle your federal tax liability for less than the full balance if paying in full would cause hardship.

Eligibility types: Doubt as to collectibility means you cannot pay the full balance with your income and assets. Doubt as to liability applies if you do not believe the assessed tax is correct. Effective tax administration applies when paying in full, which would be unfair due to exceptional circumstances.
Process and required forms: Submit Form 656 (OIC application). Provide Form 433-A (for individuals) or Form 433-B (for businesses) showing detailed financials. Pay a $205 application fee unless you qualify for low-income certification.
Initial payment: Typically 20% of the offer amount if proposing a lump sum.

Currently Not Collectible (CNC) Status

You may qualify for CNC status if your organization cannot pay any portion of its taxes without creating financial hardship.

When to consider: Monthly expenses exceed income, or liquidating assets would prevent business operations.
Process: Contact the IRS, provide financial information on Form 433-B, and demonstrate that paying would leave no funds for essential obligations.
Limitations: Penalties and interest continue to accrue. The IRS reviews your case periodically and may reinstate collection if your finances improve. The collection statute continues to run, generally for 10 years.

These resolution options can provide relief, but each requires careful documentation and compliance with IRS rules. Choosing the right approach depends on your financial situation, business operations, and long-term ability to pay your tax obligations.

Frequently Asked Questions (FAQs)

What happens if I miss the 2022 Form 945 deadline?

If you missed the filing deadline, you should submit your 2022 Form 945 immediately. The IRS may assess penalties and interest based on the taxes withheld and reported liability. Filing late but paying promptly can reduce charges. You may qualify for First Time Abate relief if this is your first mistake in several years.

Can I file Form 945 electronically for 2022?

Yes, the IRS accepts electronic filing of prior-year returns through approved providers. Submitting the 2022 return electronically can help avoid mailing delays and ensure faster processing. If you owe a balance, you can make a direct debit payment or use a payment voucher. Always confirm that you are using the correct tax year version of the form.

Do I need to file if I had no withholding activity?

You usually do not need to file if your business had no nonpayroll payments subject to federal withholding in 2022. However, keeping an annual record confirming no reportable transactions is essential. Sometimes, the IRS may still expect a return, so review your business information and confirm with a tax professional if uncertain.

How much are penalties and interest for a late Form 945?

Penalties vary depending on the situation. The failure to file penalty is generally 5% per month up to 25% of the federal tax liability, while the failure to pay penalty is 0.5% per month. Late deposits may add 2–15% more. The IRS also charges daily compounding interest until the full payment is received and processed.

Who can be held personally liable for Form 945 taxes?

The IRS may apply the Trust Fund Recovery Penalty if withheld federal taxes are not paid. Liability can extend to business officers, partners, employees, or an authorized agent controlling deposits. Even a paid preparer or bookkeeper with authority may be at risk. The IRS looks at responsibility, authority, and willfulness when determining whether someone is personally liable.

Unfiled 2022 Form 945: How to File, Penalties, and Relief Options

Frequently Asked Questions

Unfiled 2022 Form 945: How to File, Penalties, and Relief Options

Filing IRS forms on time is one of the most critical responsibilities for businesses and organizations that handle nonpayroll payments. Form 945, Annual Return of Withheld Federal Income Tax, reports federal income tax withheld from pensions, annuities, IRA distributions, gambling winnings, military retirement, and other payments. Even if you missed the deadline for the 2022 tax year, submitting an accurate return now is critical to staying compliant and avoiding escalating penalties.

Many businesses assume that only payroll taxes matter, but the IRS requires nonpayroll withholding to be reported separately. Filing Form 945 ensures that your federal tax liability is recorded correctly and that withheld taxes reach the government as the law requires. Late filers often face interest charges and multiple penalties, but the IRS also provides structured options for resolution, including installment agreements, penalty relief programs, and sometimes, settlement opportunities. Understanding these rules can help protect your organization and its responsible persons from unnecessary financial strain.

This guide will walk you through the entire process of filing an unfiled 2022 Form 945. You will learn how to determine whether you must file, how to complete each return line, where to find the correct instructions, and what penalties apply if you are late. We will also explain advanced issues such as the Trust Fund Recovery Penalty, review options for resolving tax debt, and share real-world examples. By the end, you will have a clear roadmap for filing Form 945 and resolving IRS issues confidently.

Understanding Form 945: The Basics

Form 945, officially titled the Annual Return of Withheld Federal Income Tax, is used by businesses and organizations to report federal income tax withheld from certain nonpayroll payments. This is different from payroll taxes, which are reported on Form 941. If your business withheld taxes from pensions, annuities, or other covered distributions during the calendar year, you are responsible for filing this form with the IRS. Filing ensures that your organization accurately records its federal tax liability and properly accounts for all taxes withheld. See the IRS About Form 945 page for the official form and instructions.

Form 945 vs. Form 941

The key difference between these two forms is the type of payments reported:

Form 941: This covers wages, salaries, and regular payroll withholdings.
Form 945: This applies only to nonpayroll income distributions, such as retirement plan withdrawals or certain gambling payouts.

This separation is vital because filing the wrong form may create reporting errors that require correction through an adjusted annual return, such as Form 945-X.

Who Must File Form 945?

The IRS requires filing Form 945 if you withheld or were required to withhold federal income tax on any of the following payments during the tax year:

Pensions and annuities: This includes 401(k), 403(b), and IRA distributions.
Military retirement payments: These are taxable distributions to retired service members.
Gambling winnings: This applies to winnings above the reporting threshold.
Indian gaming profits: These are distributions subject to withholding.
Alaska Native Corporation dividends: These apply when shareholders elect voluntary withholding.
Backup withholding: This applies if payees did not provide a correct taxpayer identification number.

You generally do not need to file if you had no nonpayroll payments subject to withholding during the year. However, the IRS may still expect a record of your annual return, so keeping an accurate yearly record is essential.

Why This Matters

For businesses and nonprofits, filing Form 945 is more than a compliance step—it helps avoid penalties and protects officers, partners, or employees from personal liability under certain circumstances. By filing on time and reporting the correct total taxes and withheld federal income tax, you ensure the IRS has a complete picture of your organization’s obligations for the calendar year.

Step-by-Step Filing Instructions for the 2022 Form 945

Filing Form 945 may feel complex, but breaking the process into steps makes it manageable. Use the guide below to ensure you complete form entries correctly, meet IRS rules, and avoid unnecessary penalties.

1. Determine Your Filing Requirements

Start by confirming whether you must file Form 945 for the 2022 tax year. You must file if you withheld federal income tax from nonpayroll payments, such as pensions, annuities, IRA distributions, gambling winnings, military retirement, Indian gaming profits, or certain corporate dividends. If no withholdings occurred, you generally do not file, but always verify your records before making this decision.

2. Calculate Total Tax Liability (Lines 1–3)

Line 1: Report all federal income tax withheld from applicable distributions.
Line 2: Enter the amount of backup withholding collected when payees failed to provide a taxpayer identification number.
Line 3: Add these together to calculate your total taxes.

This figure must match the amounts shown in the monthly summary section (Line 7) or, if applicable, Form 945-A for semiweekly depositors.

3. Report Deposits (Line 4)

On Line 4, enter your total deposits for 2022. This includes:

All deposits were made throughout the year
Any overpayment applied from a prior year
Adjustments made using Form 945-X (adjusted annual return)

If the IRS assigned you a deposit schedule as a monthly or semiweekly depositor, make sure deposits align with that classification.

4. Balance Due or Overpayment (Lines 5–6)

Line 5 Balance Due: If your total taxes are greater than your total deposits, you must pay the difference. Smaller balances may be sent with a payment voucher (Form 945-V).
Line 6 Overpayment: If deposits exceed your liability, you may request a refund or apply the overpayment to your next return. You cannot complete both Line 5 and Line 6.

5. Monthly Summary or Form 945-A (Line 7)

Complete the monthly summary section on Line 7 if you were a monthly depositor for the entire calendar year and your total liability was $2,500 or more. If you were a semiweekly depositor or switched schedules during the year, file Form 945-A instead.

6. Authorized Signatures

An authorized person must sign the form if it is for a sole proprietorship, and this must be the business owner.
For a corporation or LLC, the form must be signed by the president, vice president, or another authorized officer.
For a partnership or LLC, a responsible partner or member must sign the form.
For a trust or estate, the fiduciary is the one required to sign.

You may also designate a paid preparer with a preparer tax identification number (PTIN) or a third-party designee authorized to discuss the return with the IRS. Always include the signer’s title, business name, and address in the appropriate fields.

7. File Your Return

Electronic filing: The IRS strongly encourages e-filing through approved providers. If the due date falls on a legal holiday or a business day closure, file the next day.
Paper filing: Mail the form to the correct IRS location listed in the instructions, based on your state and whether a full payment is enclosed.
Retain a copy in your annual record for compliance and reference.

By carefully following these steps, you can complete Form 945, submit it correctly, and reduce the risk of penalties.

Where to Get the Correct Forms and Instructions

Finding the correct version of Form 945 is essential, especially if filing a return from a prior year, like 2022. Using the wrong form or outdated instructions can create errors that may delay processing or trigger unnecessary IRS notices. Below are the best sources for obtaining the forms you need.

IRS.gov Forms Page: The IRS maintains a dedicated page for employment-related forms, including Form 945. You can download the current year’s annual return and instructions in PDF format. This page also links to Form 945-A, Form 945-X (adjusted yearly return), and Form 945-V (payment voucher).
Archived 2022 Forms: Since you are filing a late return, you must use the 2022 version of Form 945 and its instructions. The IRS provides a prior-year forms archive to access and download the correct version. Filing the wrong tax year form can result in rejection or misapplied payments.
Phone and Mail Orders: If you prefer paper copies, call the IRS at 800-829-3676 to request forms by mail. Orders are typically processed within 10 business days, though mailing times may vary depending on your business address.
University and Academic Tax Clinics: Several accredited law schools and universities maintain comprehensive tax form libraries. For reference, institutions such as Georgetown University Law Center, NYU, and Stanford may have copies of prior-year forms. While they cannot substitute official IRS sources, they can provide reliable academic resources for research.

By using these sources, you can ensure that you have the proper forms, instructions, and supplemental documents. Locating the correct 2022 Form 945 and related materials helps you complete form entries accurately and maintain compliance with IRS filing rules.

IRS Penalties and Interest for Late Filing or Payment

Missing the due date for filing Form 945 can be costly. The IRS imposes multiple penalties and charges interest on unpaid balances. Understanding these consequences can help you take action quickly to reduce your total amount owed and avoid further complications.

Failure to File Penalty

If you fail to file Form 945 on time, the IRS assesses a penalty of 5% of the unpaid taxes per month (or part of a month) that the return is late.

The maximum penalty is 25% of the unpaid federal tax liability.
If the return is more than 60 days late, the minimum penalty is the lesser of 100% of the unpaid balance or a flat dollar amount ($485 for 2022).

Failure to Pay Penalty

If you filed the return but did not pay the full amount of your federal income tax withheld, the IRS charges a 0.5% penalty per month on the unpaid balance.

This penalty also caps at 25% of the total taxes owed.
If you set up an installment agreement, the monthly penalty may drop to 0.25%.

Failure to Deposit Penalty

Employers are required to follow the IRS-assigned deposit schedule (monthly or semiweekly). Deposits not made on time trigger escalating penalties:

2% for deposits 1–5 days late
5% for deposits 6–15 days late
10% for deposits more than 15 days late
15% if the amount remains unpaid after the IRS issues a notice and demand for payment

Interest Charges

In addition to penalties, the IRS charges interest on the unpaid tax and any penalties.

Interest is calculated daily at the federal short-term rate plus 3%.
Rates adjust quarterly so that balances may accrue at different percentages over time.
Interest continues until the full payment is made.

Example Scenario

Suppose a nonprofit failed to file its 2022 Form 945, leaving $10,000 in withheld taxes.

Failure to file penalty after 5 months: $2,500 (25% maximum)
Failure to pay penalty over 12 months: $600 (0.5% per month)
Interest charges (assuming 7% annual average): about $700

In this case, the organization would owe over $13,800 on a $10,000 liability. Taking action quickly by filing the return, arranging payment, or applying for penalty relief can minimize these costs.

Trust Fund Recovery Penalty (TFRP) Explained

The Trust Fund Recovery Penalty (TFRP) is one of a business's most serious consequences if it fails to turn over withheld taxes to the IRS. Trust fund taxes include federal income tax withheld and backup withholding amounts collected from individuals. Because these funds are considered the government’s property, the IRS imposes a penalty equal to 100% of the unpaid balance when not remitted.

Who Can Be Held Liable

The IRS may assess the TFRP against multiple people in a business, not just owners. Liability is based on who had control and responsibility for tax payments and whether they acted willfully in failing to pay. Those who may be held personally responsible include:

Corporate officers or executives, such as presidents, vice presidents, and treasurers, can be personally assessed for unpaid trust fund taxes.
Partners or LLC members who have authority over financial operations may also be held liable.
Employees who control payroll, deposits, or the organization’s checkbook can face personal responsibility.
Third parties, including bookkeepers or CPAs who had signing authority and decision-making power, may also be assessed.
Authorized agents designated to manage business funds can be held responsible if they fail to remit trust fund taxes.

How the IRS Determines Responsibility

To determine who is liable, the IRS considers:

The IRS considers whether the person had the authority to sign checks or approve payments when determining liability.
They look at who had control over business accounts and the deposit schedule.
Decision-making power regarding which creditors and expenses to pay is also a factor.
The IRS reviews whether the individual knew that withheld taxes were not being remitted.
Evidence of willful disregard, such as paying other bills before paying the IRS, is weighed heavily in determining liability.

Protection Strategies

Businesses can reduce the risk of TFRP assessments by adopting strong compliance practices:

Prioritize withheld taxes first whenever funds are limited.
Segregate trust fund taxes in a separate account to ensure they are available for deposit.
Document decisions regarding tax payments in meeting notes or accounting records.
Use a third-party designee or paid preparer only if you can verify they are current with IRS rules.
Review deposits regularly to confirm that amounts match the liabilities reported on Form 945 or Form 945-A.

The TFRP is unique because it bypasses the business and makes individuals personally liable. Officers, employees, or even outside professionals may be pursued until the full amount of the trust fund taxes is collected. Preventing problems before they arise is the best defense against this penalty.

Resolution Options for Outstanding Tax Issues

If you missed the due date for filing Form 945 or owe a balance, RS provides several ways to resolve outstanding debts. These programs help businesses and individuals manage their federal tax liabilities while staying compliant with future filing obligations.

Installment Agreements / Payment Plans

An installment agreement allows you to pay your balance over time instead of in a lump sum.

Eligibility: Businesses that owe $25,000 or less in total withheld taxes may qualify for an online application. Larger balances require additional documentation.
Application process: Apply through the IRS Online Payment Agreement tool or by calling the IRS. You will need your employer identification number (EIN), business information, bank account details, and the proposed monthly payment.
Fees and terms: Setup fees range from $31 to $225, depending on the payment method. Interest and penalties continue to accrue until the full amount is paid.
Compliance requirements: You must continue to file all future returns on time and make required deposits.

Penalty Abatement

The IRS may reduce or remove penalties if you qualify for penalty relief.

First Time Abate (FTA): Available if you have filed all required returns, paid or arranged to pay your balance, and had no penalties in the three prior years.
Reasonable Cause Relief: Granted when circumstances beyond your control prevented timely filing or payment. Examples include natural disasters or severe weather; serious illness or death of a responsible person; records destroyed by fire, theft, or casualty; or reliance on incorrect advice from a qualified authorized agent or tax professional.
How to request: Submit Form 843 or respond to an IRS notice with an explanation and supporting documentation.

Offer in Compromise (OIC)

An OIC lets you settle your federal tax liability for less than the full balance if paying in full would cause hardship.

Eligibility types: Doubt as to collectibility means you cannot pay the full balance with your income and assets. Doubt as to liability applies if you do not believe the assessed tax is correct. Effective tax administration applies when paying in full, which would be unfair due to exceptional circumstances.
Process and required forms: Submit Form 656 (OIC application). Provide Form 433-A (for individuals) or Form 433-B (for businesses) showing detailed financials. Pay a $205 application fee unless you qualify for low-income certification.
Initial payment: Typically 20% of the offer amount if proposing a lump sum.

Currently Not Collectible (CNC) Status

You may qualify for CNC status if your organization cannot pay any portion of its taxes without creating financial hardship.

When to consider: Monthly expenses exceed income, or liquidating assets would prevent business operations.
Process: Contact the IRS, provide financial information on Form 433-B, and demonstrate that paying would leave no funds for essential obligations.
Limitations: Penalties and interest continue to accrue. The IRS reviews your case periodically and may reinstate collection if your finances improve. The collection statute continues to run, generally for 10 years.

These resolution options can provide relief, but each requires careful documentation and compliance with IRS rules. Choosing the right approach depends on your financial situation, business operations, and long-term ability to pay your tax obligations.

Frequently Asked Questions (FAQs)

What happens if I miss the 2022 Form 945 deadline?

If you missed the filing deadline, you should submit your 2022 Form 945 immediately. The IRS may assess penalties and interest based on the taxes withheld and reported liability. Filing late but paying promptly can reduce charges. You may qualify for First Time Abate relief if this is your first mistake in several years.

Can I file Form 945 electronically for 2022?

Yes, the IRS accepts electronic filing of prior-year returns through approved providers. Submitting the 2022 return electronically can help avoid mailing delays and ensure faster processing. If you owe a balance, you can make a direct debit payment or use a payment voucher. Always confirm that you are using the correct tax year version of the form.

Do I need to file if I had no withholding activity?

You usually do not need to file if your business had no nonpayroll payments subject to federal withholding in 2022. However, keeping an annual record confirming no reportable transactions is essential. Sometimes, the IRS may still expect a return, so review your business information and confirm with a tax professional if uncertain.

How much are penalties and interest for a late Form 945?

Penalties vary depending on the situation. The failure to file penalty is generally 5% per month up to 25% of the federal tax liability, while the failure to pay penalty is 0.5% per month. Late deposits may add 2–15% more. The IRS also charges daily compounding interest until the full payment is received and processed.

Who can be held personally liable for Form 945 taxes?

The IRS may apply the Trust Fund Recovery Penalty if withheld federal taxes are not paid. Liability can extend to business officers, partners, employees, or an authorized agent controlling deposits. Even a paid preparer or bookkeeper with authority may be at risk. The IRS looks at responsibility, authority, and willfulness when determining whether someone is personally liable.

Frequently Asked Questions

Unfiled 2022 Form 945: How to File, Penalties, and Relief Options

Filing IRS forms on time is one of the most critical responsibilities for businesses and organizations that handle nonpayroll payments. Form 945, Annual Return of Withheld Federal Income Tax, reports federal income tax withheld from pensions, annuities, IRA distributions, gambling winnings, military retirement, and other payments. Even if you missed the deadline for the 2022 tax year, submitting an accurate return now is critical to staying compliant and avoiding escalating penalties.

Many businesses assume that only payroll taxes matter, but the IRS requires nonpayroll withholding to be reported separately. Filing Form 945 ensures that your federal tax liability is recorded correctly and that withheld taxes reach the government as the law requires. Late filers often face interest charges and multiple penalties, but the IRS also provides structured options for resolution, including installment agreements, penalty relief programs, and sometimes, settlement opportunities. Understanding these rules can help protect your organization and its responsible persons from unnecessary financial strain.

This guide will walk you through the entire process of filing an unfiled 2022 Form 945. You will learn how to determine whether you must file, how to complete each return line, where to find the correct instructions, and what penalties apply if you are late. We will also explain advanced issues such as the Trust Fund Recovery Penalty, review options for resolving tax debt, and share real-world examples. By the end, you will have a clear roadmap for filing Form 945 and resolving IRS issues confidently.

Understanding Form 945: The Basics

Form 945, officially titled the Annual Return of Withheld Federal Income Tax, is used by businesses and organizations to report federal income tax withheld from certain nonpayroll payments. This is different from payroll taxes, which are reported on Form 941. If your business withheld taxes from pensions, annuities, or other covered distributions during the calendar year, you are responsible for filing this form with the IRS. Filing ensures that your organization accurately records its federal tax liability and properly accounts for all taxes withheld. See the IRS About Form 945 page for the official form and instructions.

Form 945 vs. Form 941

The key difference between these two forms is the type of payments reported:

Form 941: This covers wages, salaries, and regular payroll withholdings.
Form 945: This applies only to nonpayroll income distributions, such as retirement plan withdrawals or certain gambling payouts.

This separation is vital because filing the wrong form may create reporting errors that require correction through an adjusted annual return, such as Form 945-X.

Who Must File Form 945?

The IRS requires filing Form 945 if you withheld or were required to withhold federal income tax on any of the following payments during the tax year:

Pensions and annuities: This includes 401(k), 403(b), and IRA distributions.
Military retirement payments: These are taxable distributions to retired service members.
Gambling winnings: This applies to winnings above the reporting threshold.
Indian gaming profits: These are distributions subject to withholding.
Alaska Native Corporation dividends: These apply when shareholders elect voluntary withholding.
Backup withholding: This applies if payees did not provide a correct taxpayer identification number.

You generally do not need to file if you had no nonpayroll payments subject to withholding during the year. However, the IRS may still expect a record of your annual return, so keeping an accurate yearly record is essential.

Why This Matters

For businesses and nonprofits, filing Form 945 is more than a compliance step—it helps avoid penalties and protects officers, partners, or employees from personal liability under certain circumstances. By filing on time and reporting the correct total taxes and withheld federal income tax, you ensure the IRS has a complete picture of your organization’s obligations for the calendar year.

Step-by-Step Filing Instructions for the 2022 Form 945

Filing Form 945 may feel complex, but breaking the process into steps makes it manageable. Use the guide below to ensure you complete form entries correctly, meet IRS rules, and avoid unnecessary penalties.

1. Determine Your Filing Requirements

Start by confirming whether you must file Form 945 for the 2022 tax year. You must file if you withheld federal income tax from nonpayroll payments, such as pensions, annuities, IRA distributions, gambling winnings, military retirement, Indian gaming profits, or certain corporate dividends. If no withholdings occurred, you generally do not file, but always verify your records before making this decision.

2. Calculate Total Tax Liability (Lines 1–3)

Line 1: Report all federal income tax withheld from applicable distributions.
Line 2: Enter the amount of backup withholding collected when payees failed to provide a taxpayer identification number.
Line 3: Add these together to calculate your total taxes.

This figure must match the amounts shown in the monthly summary section (Line 7) or, if applicable, Form 945-A for semiweekly depositors.

3. Report Deposits (Line 4)

On Line 4, enter your total deposits for 2022. This includes:

All deposits were made throughout the year
Any overpayment applied from a prior year
Adjustments made using Form 945-X (adjusted annual return)

If the IRS assigned you a deposit schedule as a monthly or semiweekly depositor, make sure deposits align with that classification.

4. Balance Due or Overpayment (Lines 5–6)

Line 5 Balance Due: If your total taxes are greater than your total deposits, you must pay the difference. Smaller balances may be sent with a payment voucher (Form 945-V).
Line 6 Overpayment: If deposits exceed your liability, you may request a refund or apply the overpayment to your next return. You cannot complete both Line 5 and Line 6.

5. Monthly Summary or Form 945-A (Line 7)

Complete the monthly summary section on Line 7 if you were a monthly depositor for the entire calendar year and your total liability was $2,500 or more. If you were a semiweekly depositor or switched schedules during the year, file Form 945-A instead.

6. Authorized Signatures

An authorized person must sign the form if it is for a sole proprietorship, and this must be the business owner.
For a corporation or LLC, the form must be signed by the president, vice president, or another authorized officer.
For a partnership or LLC, a responsible partner or member must sign the form.
For a trust or estate, the fiduciary is the one required to sign.

You may also designate a paid preparer with a preparer tax identification number (PTIN) or a third-party designee authorized to discuss the return with the IRS. Always include the signer’s title, business name, and address in the appropriate fields.

7. File Your Return

Electronic filing: The IRS strongly encourages e-filing through approved providers. If the due date falls on a legal holiday or a business day closure, file the next day.
Paper filing: Mail the form to the correct IRS location listed in the instructions, based on your state and whether a full payment is enclosed.
Retain a copy in your annual record for compliance and reference.

By carefully following these steps, you can complete Form 945, submit it correctly, and reduce the risk of penalties.

Where to Get the Correct Forms and Instructions

Finding the correct version of Form 945 is essential, especially if filing a return from a prior year, like 2022. Using the wrong form or outdated instructions can create errors that may delay processing or trigger unnecessary IRS notices. Below are the best sources for obtaining the forms you need.

IRS.gov Forms Page: The IRS maintains a dedicated page for employment-related forms, including Form 945. You can download the current year’s annual return and instructions in PDF format. This page also links to Form 945-A, Form 945-X (adjusted yearly return), and Form 945-V (payment voucher).
Archived 2022 Forms: Since you are filing a late return, you must use the 2022 version of Form 945 and its instructions. The IRS provides a prior-year forms archive to access and download the correct version. Filing the wrong tax year form can result in rejection or misapplied payments.
Phone and Mail Orders: If you prefer paper copies, call the IRS at 800-829-3676 to request forms by mail. Orders are typically processed within 10 business days, though mailing times may vary depending on your business address.
University and Academic Tax Clinics: Several accredited law schools and universities maintain comprehensive tax form libraries. For reference, institutions such as Georgetown University Law Center, NYU, and Stanford may have copies of prior-year forms. While they cannot substitute official IRS sources, they can provide reliable academic resources for research.

By using these sources, you can ensure that you have the proper forms, instructions, and supplemental documents. Locating the correct 2022 Form 945 and related materials helps you complete form entries accurately and maintain compliance with IRS filing rules.

IRS Penalties and Interest for Late Filing or Payment

Missing the due date for filing Form 945 can be costly. The IRS imposes multiple penalties and charges interest on unpaid balances. Understanding these consequences can help you take action quickly to reduce your total amount owed and avoid further complications.

Failure to File Penalty

If you fail to file Form 945 on time, the IRS assesses a penalty of 5% of the unpaid taxes per month (or part of a month) that the return is late.

The maximum penalty is 25% of the unpaid federal tax liability.
If the return is more than 60 days late, the minimum penalty is the lesser of 100% of the unpaid balance or a flat dollar amount ($485 for 2022).

Failure to Pay Penalty

If you filed the return but did not pay the full amount of your federal income tax withheld, the IRS charges a 0.5% penalty per month on the unpaid balance.

This penalty also caps at 25% of the total taxes owed.
If you set up an installment agreement, the monthly penalty may drop to 0.25%.

Failure to Deposit Penalty

Employers are required to follow the IRS-assigned deposit schedule (monthly or semiweekly). Deposits not made on time trigger escalating penalties:

2% for deposits 1–5 days late
5% for deposits 6–15 days late
10% for deposits more than 15 days late
15% if the amount remains unpaid after the IRS issues a notice and demand for payment

Interest Charges

In addition to penalties, the IRS charges interest on the unpaid tax and any penalties.

Interest is calculated daily at the federal short-term rate plus 3%.
Rates adjust quarterly so that balances may accrue at different percentages over time.
Interest continues until the full payment is made.

Example Scenario

Suppose a nonprofit failed to file its 2022 Form 945, leaving $10,000 in withheld taxes.

Failure to file penalty after 5 months: $2,500 (25% maximum)
Failure to pay penalty over 12 months: $600 (0.5% per month)
Interest charges (assuming 7% annual average): about $700

In this case, the organization would owe over $13,800 on a $10,000 liability. Taking action quickly by filing the return, arranging payment, or applying for penalty relief can minimize these costs.

Trust Fund Recovery Penalty (TFRP) Explained

The Trust Fund Recovery Penalty (TFRP) is one of a business's most serious consequences if it fails to turn over withheld taxes to the IRS. Trust fund taxes include federal income tax withheld and backup withholding amounts collected from individuals. Because these funds are considered the government’s property, the IRS imposes a penalty equal to 100% of the unpaid balance when not remitted.

Who Can Be Held Liable

The IRS may assess the TFRP against multiple people in a business, not just owners. Liability is based on who had control and responsibility for tax payments and whether they acted willfully in failing to pay. Those who may be held personally responsible include:

Corporate officers or executives, such as presidents, vice presidents, and treasurers, can be personally assessed for unpaid trust fund taxes.
Partners or LLC members who have authority over financial operations may also be held liable.
Employees who control payroll, deposits, or the organization’s checkbook can face personal responsibility.
Third parties, including bookkeepers or CPAs who had signing authority and decision-making power, may also be assessed.
Authorized agents designated to manage business funds can be held responsible if they fail to remit trust fund taxes.

How the IRS Determines Responsibility

To determine who is liable, the IRS considers:

The IRS considers whether the person had the authority to sign checks or approve payments when determining liability.
They look at who had control over business accounts and the deposit schedule.
Decision-making power regarding which creditors and expenses to pay is also a factor.
The IRS reviews whether the individual knew that withheld taxes were not being remitted.
Evidence of willful disregard, such as paying other bills before paying the IRS, is weighed heavily in determining liability.

Protection Strategies

Businesses can reduce the risk of TFRP assessments by adopting strong compliance practices:

Prioritize withheld taxes first whenever funds are limited.
Segregate trust fund taxes in a separate account to ensure they are available for deposit.
Document decisions regarding tax payments in meeting notes or accounting records.
Use a third-party designee or paid preparer only if you can verify they are current with IRS rules.
Review deposits regularly to confirm that amounts match the liabilities reported on Form 945 or Form 945-A.

The TFRP is unique because it bypasses the business and makes individuals personally liable. Officers, employees, or even outside professionals may be pursued until the full amount of the trust fund taxes is collected. Preventing problems before they arise is the best defense against this penalty.

Resolution Options for Outstanding Tax Issues

If you missed the due date for filing Form 945 or owe a balance, RS provides several ways to resolve outstanding debts. These programs help businesses and individuals manage their federal tax liabilities while staying compliant with future filing obligations.

Installment Agreements / Payment Plans

An installment agreement allows you to pay your balance over time instead of in a lump sum.

Eligibility: Businesses that owe $25,000 or less in total withheld taxes may qualify for an online application. Larger balances require additional documentation.
Application process: Apply through the IRS Online Payment Agreement tool or by calling the IRS. You will need your employer identification number (EIN), business information, bank account details, and the proposed monthly payment.
Fees and terms: Setup fees range from $31 to $225, depending on the payment method. Interest and penalties continue to accrue until the full amount is paid.
Compliance requirements: You must continue to file all future returns on time and make required deposits.

Penalty Abatement

The IRS may reduce or remove penalties if you qualify for penalty relief.

First Time Abate (FTA): Available if you have filed all required returns, paid or arranged to pay your balance, and had no penalties in the three prior years.
Reasonable Cause Relief: Granted when circumstances beyond your control prevented timely filing or payment. Examples include natural disasters or severe weather; serious illness or death of a responsible person; records destroyed by fire, theft, or casualty; or reliance on incorrect advice from a qualified authorized agent or tax professional.
How to request: Submit Form 843 or respond to an IRS notice with an explanation and supporting documentation.

Offer in Compromise (OIC)

An OIC lets you settle your federal tax liability for less than the full balance if paying in full would cause hardship.

Eligibility types: Doubt as to collectibility means you cannot pay the full balance with your income and assets. Doubt as to liability applies if you do not believe the assessed tax is correct. Effective tax administration applies when paying in full, which would be unfair due to exceptional circumstances.
Process and required forms: Submit Form 656 (OIC application). Provide Form 433-A (for individuals) or Form 433-B (for businesses) showing detailed financials. Pay a $205 application fee unless you qualify for low-income certification.
Initial payment: Typically 20% of the offer amount if proposing a lump sum.

Currently Not Collectible (CNC) Status

You may qualify for CNC status if your organization cannot pay any portion of its taxes without creating financial hardship.

When to consider: Monthly expenses exceed income, or liquidating assets would prevent business operations.
Process: Contact the IRS, provide financial information on Form 433-B, and demonstrate that paying would leave no funds for essential obligations.
Limitations: Penalties and interest continue to accrue. The IRS reviews your case periodically and may reinstate collection if your finances improve. The collection statute continues to run, generally for 10 years.

These resolution options can provide relief, but each requires careful documentation and compliance with IRS rules. Choosing the right approach depends on your financial situation, business operations, and long-term ability to pay your tax obligations.

Frequently Asked Questions (FAQs)

What happens if I miss the 2022 Form 945 deadline?

If you missed the filing deadline, you should submit your 2022 Form 945 immediately. The IRS may assess penalties and interest based on the taxes withheld and reported liability. Filing late but paying promptly can reduce charges. You may qualify for First Time Abate relief if this is your first mistake in several years.

Can I file Form 945 electronically for 2022?

Yes, the IRS accepts electronic filing of prior-year returns through approved providers. Submitting the 2022 return electronically can help avoid mailing delays and ensure faster processing. If you owe a balance, you can make a direct debit payment or use a payment voucher. Always confirm that you are using the correct tax year version of the form.

Do I need to file if I had no withholding activity?

You usually do not need to file if your business had no nonpayroll payments subject to federal withholding in 2022. However, keeping an annual record confirming no reportable transactions is essential. Sometimes, the IRS may still expect a return, so review your business information and confirm with a tax professional if uncertain.

How much are penalties and interest for a late Form 945?

Penalties vary depending on the situation. The failure to file penalty is generally 5% per month up to 25% of the federal tax liability, while the failure to pay penalty is 0.5% per month. Late deposits may add 2–15% more. The IRS also charges daily compounding interest until the full payment is received and processed.

Who can be held personally liable for Form 945 taxes?

The IRS may apply the Trust Fund Recovery Penalty if withheld federal taxes are not paid. Liability can extend to business officers, partners, employees, or an authorized agent controlling deposits. Even a paid preparer or bookkeeper with authority may be at risk. The IRS looks at responsibility, authority, and willfulness when determining whether someone is personally liable.

Frequently Asked Questions

Unfiled 2022 Form 945: How to File, Penalties, and Relief Options

Filing IRS forms on time is one of the most critical responsibilities for businesses and organizations that handle nonpayroll payments. Form 945, Annual Return of Withheld Federal Income Tax, reports federal income tax withheld from pensions, annuities, IRA distributions, gambling winnings, military retirement, and other payments. Even if you missed the deadline for the 2022 tax year, submitting an accurate return now is critical to staying compliant and avoiding escalating penalties.

Many businesses assume that only payroll taxes matter, but the IRS requires nonpayroll withholding to be reported separately. Filing Form 945 ensures that your federal tax liability is recorded correctly and that withheld taxes reach the government as the law requires. Late filers often face interest charges and multiple penalties, but the IRS also provides structured options for resolution, including installment agreements, penalty relief programs, and sometimes, settlement opportunities. Understanding these rules can help protect your organization and its responsible persons from unnecessary financial strain.

This guide will walk you through the entire process of filing an unfiled 2022 Form 945. You will learn how to determine whether you must file, how to complete each return line, where to find the correct instructions, and what penalties apply if you are late. We will also explain advanced issues such as the Trust Fund Recovery Penalty, review options for resolving tax debt, and share real-world examples. By the end, you will have a clear roadmap for filing Form 945 and resolving IRS issues confidently.

Understanding Form 945: The Basics

Form 945, officially titled the Annual Return of Withheld Federal Income Tax, is used by businesses and organizations to report federal income tax withheld from certain nonpayroll payments. This is different from payroll taxes, which are reported on Form 941. If your business withheld taxes from pensions, annuities, or other covered distributions during the calendar year, you are responsible for filing this form with the IRS. Filing ensures that your organization accurately records its federal tax liability and properly accounts for all taxes withheld. See the IRS About Form 945 page for the official form and instructions.

Form 945 vs. Form 941

The key difference between these two forms is the type of payments reported:

Form 941: This covers wages, salaries, and regular payroll withholdings.
Form 945: This applies only to nonpayroll income distributions, such as retirement plan withdrawals or certain gambling payouts.

This separation is vital because filing the wrong form may create reporting errors that require correction through an adjusted annual return, such as Form 945-X.

Who Must File Form 945?

The IRS requires filing Form 945 if you withheld or were required to withhold federal income tax on any of the following payments during the tax year:

Pensions and annuities: This includes 401(k), 403(b), and IRA distributions.
Military retirement payments: These are taxable distributions to retired service members.
Gambling winnings: This applies to winnings above the reporting threshold.
Indian gaming profits: These are distributions subject to withholding.
Alaska Native Corporation dividends: These apply when shareholders elect voluntary withholding.
Backup withholding: This applies if payees did not provide a correct taxpayer identification number.

You generally do not need to file if you had no nonpayroll payments subject to withholding during the year. However, the IRS may still expect a record of your annual return, so keeping an accurate yearly record is essential.

Why This Matters

For businesses and nonprofits, filing Form 945 is more than a compliance step—it helps avoid penalties and protects officers, partners, or employees from personal liability under certain circumstances. By filing on time and reporting the correct total taxes and withheld federal income tax, you ensure the IRS has a complete picture of your organization’s obligations for the calendar year.

Step-by-Step Filing Instructions for the 2022 Form 945

Filing Form 945 may feel complex, but breaking the process into steps makes it manageable. Use the guide below to ensure you complete form entries correctly, meet IRS rules, and avoid unnecessary penalties.

1. Determine Your Filing Requirements

Start by confirming whether you must file Form 945 for the 2022 tax year. You must file if you withheld federal income tax from nonpayroll payments, such as pensions, annuities, IRA distributions, gambling winnings, military retirement, Indian gaming profits, or certain corporate dividends. If no withholdings occurred, you generally do not file, but always verify your records before making this decision.

2. Calculate Total Tax Liability (Lines 1–3)

Line 1: Report all federal income tax withheld from applicable distributions.
Line 2: Enter the amount of backup withholding collected when payees failed to provide a taxpayer identification number.
Line 3: Add these together to calculate your total taxes.

This figure must match the amounts shown in the monthly summary section (Line 7) or, if applicable, Form 945-A for semiweekly depositors.

3. Report Deposits (Line 4)

On Line 4, enter your total deposits for 2022. This includes:

All deposits were made throughout the year
Any overpayment applied from a prior year
Adjustments made using Form 945-X (adjusted annual return)

If the IRS assigned you a deposit schedule as a monthly or semiweekly depositor, make sure deposits align with that classification.

4. Balance Due or Overpayment (Lines 5–6)

Line 5 Balance Due: If your total taxes are greater than your total deposits, you must pay the difference. Smaller balances may be sent with a payment voucher (Form 945-V).
Line 6 Overpayment: If deposits exceed your liability, you may request a refund or apply the overpayment to your next return. You cannot complete both Line 5 and Line 6.

5. Monthly Summary or Form 945-A (Line 7)

Complete the monthly summary section on Line 7 if you were a monthly depositor for the entire calendar year and your total liability was $2,500 or more. If you were a semiweekly depositor or switched schedules during the year, file Form 945-A instead.

6. Authorized Signatures

An authorized person must sign the form if it is for a sole proprietorship, and this must be the business owner.
For a corporation or LLC, the form must be signed by the president, vice president, or another authorized officer.
For a partnership or LLC, a responsible partner or member must sign the form.
For a trust or estate, the fiduciary is the one required to sign.

You may also designate a paid preparer with a preparer tax identification number (PTIN) or a third-party designee authorized to discuss the return with the IRS. Always include the signer’s title, business name, and address in the appropriate fields.

7. File Your Return

Electronic filing: The IRS strongly encourages e-filing through approved providers. If the due date falls on a legal holiday or a business day closure, file the next day.
Paper filing: Mail the form to the correct IRS location listed in the instructions, based on your state and whether a full payment is enclosed.
Retain a copy in your annual record for compliance and reference.

By carefully following these steps, you can complete Form 945, submit it correctly, and reduce the risk of penalties.

Where to Get the Correct Forms and Instructions

Finding the correct version of Form 945 is essential, especially if filing a return from a prior year, like 2022. Using the wrong form or outdated instructions can create errors that may delay processing or trigger unnecessary IRS notices. Below are the best sources for obtaining the forms you need.

IRS.gov Forms Page: The IRS maintains a dedicated page for employment-related forms, including Form 945. You can download the current year’s annual return and instructions in PDF format. This page also links to Form 945-A, Form 945-X (adjusted yearly return), and Form 945-V (payment voucher).
Archived 2022 Forms: Since you are filing a late return, you must use the 2022 version of Form 945 and its instructions. The IRS provides a prior-year forms archive to access and download the correct version. Filing the wrong tax year form can result in rejection or misapplied payments.
Phone and Mail Orders: If you prefer paper copies, call the IRS at 800-829-3676 to request forms by mail. Orders are typically processed within 10 business days, though mailing times may vary depending on your business address.
University and Academic Tax Clinics: Several accredited law schools and universities maintain comprehensive tax form libraries. For reference, institutions such as Georgetown University Law Center, NYU, and Stanford may have copies of prior-year forms. While they cannot substitute official IRS sources, they can provide reliable academic resources for research.

By using these sources, you can ensure that you have the proper forms, instructions, and supplemental documents. Locating the correct 2022 Form 945 and related materials helps you complete form entries accurately and maintain compliance with IRS filing rules.

IRS Penalties and Interest for Late Filing or Payment

Missing the due date for filing Form 945 can be costly. The IRS imposes multiple penalties and charges interest on unpaid balances. Understanding these consequences can help you take action quickly to reduce your total amount owed and avoid further complications.

Failure to File Penalty

If you fail to file Form 945 on time, the IRS assesses a penalty of 5% of the unpaid taxes per month (or part of a month) that the return is late.

The maximum penalty is 25% of the unpaid federal tax liability.
If the return is more than 60 days late, the minimum penalty is the lesser of 100% of the unpaid balance or a flat dollar amount ($485 for 2022).

Failure to Pay Penalty

If you filed the return but did not pay the full amount of your federal income tax withheld, the IRS charges a 0.5% penalty per month on the unpaid balance.

This penalty also caps at 25% of the total taxes owed.
If you set up an installment agreement, the monthly penalty may drop to 0.25%.

Failure to Deposit Penalty

Employers are required to follow the IRS-assigned deposit schedule (monthly or semiweekly). Deposits not made on time trigger escalating penalties:

2% for deposits 1–5 days late
5% for deposits 6–15 days late
10% for deposits more than 15 days late
15% if the amount remains unpaid after the IRS issues a notice and demand for payment

Interest Charges

In addition to penalties, the IRS charges interest on the unpaid tax and any penalties.

Interest is calculated daily at the federal short-term rate plus 3%.
Rates adjust quarterly so that balances may accrue at different percentages over time.
Interest continues until the full payment is made.

Example Scenario

Suppose a nonprofit failed to file its 2022 Form 945, leaving $10,000 in withheld taxes.

Failure to file penalty after 5 months: $2,500 (25% maximum)
Failure to pay penalty over 12 months: $600 (0.5% per month)
Interest charges (assuming 7% annual average): about $700

In this case, the organization would owe over $13,800 on a $10,000 liability. Taking action quickly by filing the return, arranging payment, or applying for penalty relief can minimize these costs.

Trust Fund Recovery Penalty (TFRP) Explained

The Trust Fund Recovery Penalty (TFRP) is one of a business's most serious consequences if it fails to turn over withheld taxes to the IRS. Trust fund taxes include federal income tax withheld and backup withholding amounts collected from individuals. Because these funds are considered the government’s property, the IRS imposes a penalty equal to 100% of the unpaid balance when not remitted.

Who Can Be Held Liable

The IRS may assess the TFRP against multiple people in a business, not just owners. Liability is based on who had control and responsibility for tax payments and whether they acted willfully in failing to pay. Those who may be held personally responsible include:

Corporate officers or executives, such as presidents, vice presidents, and treasurers, can be personally assessed for unpaid trust fund taxes.
Partners or LLC members who have authority over financial operations may also be held liable.
Employees who control payroll, deposits, or the organization’s checkbook can face personal responsibility.
Third parties, including bookkeepers or CPAs who had signing authority and decision-making power, may also be assessed.
Authorized agents designated to manage business funds can be held responsible if they fail to remit trust fund taxes.

How the IRS Determines Responsibility

To determine who is liable, the IRS considers:

The IRS considers whether the person had the authority to sign checks or approve payments when determining liability.
They look at who had control over business accounts and the deposit schedule.
Decision-making power regarding which creditors and expenses to pay is also a factor.
The IRS reviews whether the individual knew that withheld taxes were not being remitted.
Evidence of willful disregard, such as paying other bills before paying the IRS, is weighed heavily in determining liability.

Protection Strategies

Businesses can reduce the risk of TFRP assessments by adopting strong compliance practices:

Prioritize withheld taxes first whenever funds are limited.
Segregate trust fund taxes in a separate account to ensure they are available for deposit.
Document decisions regarding tax payments in meeting notes or accounting records.
Use a third-party designee or paid preparer only if you can verify they are current with IRS rules.
Review deposits regularly to confirm that amounts match the liabilities reported on Form 945 or Form 945-A.

The TFRP is unique because it bypasses the business and makes individuals personally liable. Officers, employees, or even outside professionals may be pursued until the full amount of the trust fund taxes is collected. Preventing problems before they arise is the best defense against this penalty.

Resolution Options for Outstanding Tax Issues

If you missed the due date for filing Form 945 or owe a balance, RS provides several ways to resolve outstanding debts. These programs help businesses and individuals manage their federal tax liabilities while staying compliant with future filing obligations.

Installment Agreements / Payment Plans

An installment agreement allows you to pay your balance over time instead of in a lump sum.

Eligibility: Businesses that owe $25,000 or less in total withheld taxes may qualify for an online application. Larger balances require additional documentation.
Application process: Apply through the IRS Online Payment Agreement tool or by calling the IRS. You will need your employer identification number (EIN), business information, bank account details, and the proposed monthly payment.
Fees and terms: Setup fees range from $31 to $225, depending on the payment method. Interest and penalties continue to accrue until the full amount is paid.
Compliance requirements: You must continue to file all future returns on time and make required deposits.

Penalty Abatement

The IRS may reduce or remove penalties if you qualify for penalty relief.

First Time Abate (FTA): Available if you have filed all required returns, paid or arranged to pay your balance, and had no penalties in the three prior years.
Reasonable Cause Relief: Granted when circumstances beyond your control prevented timely filing or payment. Examples include natural disasters or severe weather; serious illness or death of a responsible person; records destroyed by fire, theft, or casualty; or reliance on incorrect advice from a qualified authorized agent or tax professional.
How to request: Submit Form 843 or respond to an IRS notice with an explanation and supporting documentation.

Offer in Compromise (OIC)

An OIC lets you settle your federal tax liability for less than the full balance if paying in full would cause hardship.

Eligibility types: Doubt as to collectibility means you cannot pay the full balance with your income and assets. Doubt as to liability applies if you do not believe the assessed tax is correct. Effective tax administration applies when paying in full, which would be unfair due to exceptional circumstances.
Process and required forms: Submit Form 656 (OIC application). Provide Form 433-A (for individuals) or Form 433-B (for businesses) showing detailed financials. Pay a $205 application fee unless you qualify for low-income certification.
Initial payment: Typically 20% of the offer amount if proposing a lump sum.

Currently Not Collectible (CNC) Status

You may qualify for CNC status if your organization cannot pay any portion of its taxes without creating financial hardship.

When to consider: Monthly expenses exceed income, or liquidating assets would prevent business operations.
Process: Contact the IRS, provide financial information on Form 433-B, and demonstrate that paying would leave no funds for essential obligations.
Limitations: Penalties and interest continue to accrue. The IRS reviews your case periodically and may reinstate collection if your finances improve. The collection statute continues to run, generally for 10 years.

These resolution options can provide relief, but each requires careful documentation and compliance with IRS rules. Choosing the right approach depends on your financial situation, business operations, and long-term ability to pay your tax obligations.

Frequently Asked Questions (FAQs)

What happens if I miss the 2022 Form 945 deadline?

If you missed the filing deadline, you should submit your 2022 Form 945 immediately. The IRS may assess penalties and interest based on the taxes withheld and reported liability. Filing late but paying promptly can reduce charges. You may qualify for First Time Abate relief if this is your first mistake in several years.

Can I file Form 945 electronically for 2022?

Yes, the IRS accepts electronic filing of prior-year returns through approved providers. Submitting the 2022 return electronically can help avoid mailing delays and ensure faster processing. If you owe a balance, you can make a direct debit payment or use a payment voucher. Always confirm that you are using the correct tax year version of the form.

Do I need to file if I had no withholding activity?

You usually do not need to file if your business had no nonpayroll payments subject to federal withholding in 2022. However, keeping an annual record confirming no reportable transactions is essential. Sometimes, the IRS may still expect a return, so review your business information and confirm with a tax professional if uncertain.

How much are penalties and interest for a late Form 945?

Penalties vary depending on the situation. The failure to file penalty is generally 5% per month up to 25% of the federal tax liability, while the failure to pay penalty is 0.5% per month. Late deposits may add 2–15% more. The IRS also charges daily compounding interest until the full payment is received and processed.

Who can be held personally liable for Form 945 taxes?

The IRS may apply the Trust Fund Recovery Penalty if withheld federal taxes are not paid. Liability can extend to business officers, partners, employees, or an authorized agent controlling deposits. Even a paid preparer or bookkeeper with authority may be at risk. The IRS looks at responsibility, authority, and willfulness when determining whether someone is personally liable.

Frequently Asked Questions

Unfiled 2022 Form 945: How to File, Penalties, and Relief Options

Filing IRS forms on time is one of the most critical responsibilities for businesses and organizations that handle nonpayroll payments. Form 945, Annual Return of Withheld Federal Income Tax, reports federal income tax withheld from pensions, annuities, IRA distributions, gambling winnings, military retirement, and other payments. Even if you missed the deadline for the 2022 tax year, submitting an accurate return now is critical to staying compliant and avoiding escalating penalties.

Many businesses assume that only payroll taxes matter, but the IRS requires nonpayroll withholding to be reported separately. Filing Form 945 ensures that your federal tax liability is recorded correctly and that withheld taxes reach the government as the law requires. Late filers often face interest charges and multiple penalties, but the IRS also provides structured options for resolution, including installment agreements, penalty relief programs, and sometimes, settlement opportunities. Understanding these rules can help protect your organization and its responsible persons from unnecessary financial strain.

This guide will walk you through the entire process of filing an unfiled 2022 Form 945. You will learn how to determine whether you must file, how to complete each return line, where to find the correct instructions, and what penalties apply if you are late. We will also explain advanced issues such as the Trust Fund Recovery Penalty, review options for resolving tax debt, and share real-world examples. By the end, you will have a clear roadmap for filing Form 945 and resolving IRS issues confidently.

Understanding Form 945: The Basics

Form 945, officially titled the Annual Return of Withheld Federal Income Tax, is used by businesses and organizations to report federal income tax withheld from certain nonpayroll payments. This is different from payroll taxes, which are reported on Form 941. If your business withheld taxes from pensions, annuities, or other covered distributions during the calendar year, you are responsible for filing this form with the IRS. Filing ensures that your organization accurately records its federal tax liability and properly accounts for all taxes withheld. See the IRS About Form 945 page for the official form and instructions.

Form 945 vs. Form 941

The key difference between these two forms is the type of payments reported:

Form 941: This covers wages, salaries, and regular payroll withholdings.
Form 945: This applies only to nonpayroll income distributions, such as retirement plan withdrawals or certain gambling payouts.

This separation is vital because filing the wrong form may create reporting errors that require correction through an adjusted annual return, such as Form 945-X.

Who Must File Form 945?

The IRS requires filing Form 945 if you withheld or were required to withhold federal income tax on any of the following payments during the tax year:

Pensions and annuities: This includes 401(k), 403(b), and IRA distributions.
Military retirement payments: These are taxable distributions to retired service members.
Gambling winnings: This applies to winnings above the reporting threshold.
Indian gaming profits: These are distributions subject to withholding.
Alaska Native Corporation dividends: These apply when shareholders elect voluntary withholding.
Backup withholding: This applies if payees did not provide a correct taxpayer identification number.

You generally do not need to file if you had no nonpayroll payments subject to withholding during the year. However, the IRS may still expect a record of your annual return, so keeping an accurate yearly record is essential.

Why This Matters

For businesses and nonprofits, filing Form 945 is more than a compliance step—it helps avoid penalties and protects officers, partners, or employees from personal liability under certain circumstances. By filing on time and reporting the correct total taxes and withheld federal income tax, you ensure the IRS has a complete picture of your organization’s obligations for the calendar year.

Step-by-Step Filing Instructions for the 2022 Form 945

Filing Form 945 may feel complex, but breaking the process into steps makes it manageable. Use the guide below to ensure you complete form entries correctly, meet IRS rules, and avoid unnecessary penalties.

1. Determine Your Filing Requirements

Start by confirming whether you must file Form 945 for the 2022 tax year. You must file if you withheld federal income tax from nonpayroll payments, such as pensions, annuities, IRA distributions, gambling winnings, military retirement, Indian gaming profits, or certain corporate dividends. If no withholdings occurred, you generally do not file, but always verify your records before making this decision.

2. Calculate Total Tax Liability (Lines 1–3)

Line 1: Report all federal income tax withheld from applicable distributions.
Line 2: Enter the amount of backup withholding collected when payees failed to provide a taxpayer identification number.
Line 3: Add these together to calculate your total taxes.

This figure must match the amounts shown in the monthly summary section (Line 7) or, if applicable, Form 945-A for semiweekly depositors.

3. Report Deposits (Line 4)

On Line 4, enter your total deposits for 2022. This includes:

All deposits were made throughout the year
Any overpayment applied from a prior year
Adjustments made using Form 945-X (adjusted annual return)

If the IRS assigned you a deposit schedule as a monthly or semiweekly depositor, make sure deposits align with that classification.

4. Balance Due or Overpayment (Lines 5–6)

Line 5 Balance Due: If your total taxes are greater than your total deposits, you must pay the difference. Smaller balances may be sent with a payment voucher (Form 945-V).
Line 6 Overpayment: If deposits exceed your liability, you may request a refund or apply the overpayment to your next return. You cannot complete both Line 5 and Line 6.

5. Monthly Summary or Form 945-A (Line 7)

Complete the monthly summary section on Line 7 if you were a monthly depositor for the entire calendar year and your total liability was $2,500 or more. If you were a semiweekly depositor or switched schedules during the year, file Form 945-A instead.

6. Authorized Signatures

An authorized person must sign the form if it is for a sole proprietorship, and this must be the business owner.
For a corporation or LLC, the form must be signed by the president, vice president, or another authorized officer.
For a partnership or LLC, a responsible partner or member must sign the form.
For a trust or estate, the fiduciary is the one required to sign.

You may also designate a paid preparer with a preparer tax identification number (PTIN) or a third-party designee authorized to discuss the return with the IRS. Always include the signer’s title, business name, and address in the appropriate fields.

7. File Your Return

Electronic filing: The IRS strongly encourages e-filing through approved providers. If the due date falls on a legal holiday or a business day closure, file the next day.
Paper filing: Mail the form to the correct IRS location listed in the instructions, based on your state and whether a full payment is enclosed.
Retain a copy in your annual record for compliance and reference.

By carefully following these steps, you can complete Form 945, submit it correctly, and reduce the risk of penalties.

Where to Get the Correct Forms and Instructions

Finding the correct version of Form 945 is essential, especially if filing a return from a prior year, like 2022. Using the wrong form or outdated instructions can create errors that may delay processing or trigger unnecessary IRS notices. Below are the best sources for obtaining the forms you need.

IRS.gov Forms Page: The IRS maintains a dedicated page for employment-related forms, including Form 945. You can download the current year’s annual return and instructions in PDF format. This page also links to Form 945-A, Form 945-X (adjusted yearly return), and Form 945-V (payment voucher).
Archived 2022 Forms: Since you are filing a late return, you must use the 2022 version of Form 945 and its instructions. The IRS provides a prior-year forms archive to access and download the correct version. Filing the wrong tax year form can result in rejection or misapplied payments.
Phone and Mail Orders: If you prefer paper copies, call the IRS at 800-829-3676 to request forms by mail. Orders are typically processed within 10 business days, though mailing times may vary depending on your business address.
University and Academic Tax Clinics: Several accredited law schools and universities maintain comprehensive tax form libraries. For reference, institutions such as Georgetown University Law Center, NYU, and Stanford may have copies of prior-year forms. While they cannot substitute official IRS sources, they can provide reliable academic resources for research.

By using these sources, you can ensure that you have the proper forms, instructions, and supplemental documents. Locating the correct 2022 Form 945 and related materials helps you complete form entries accurately and maintain compliance with IRS filing rules.

IRS Penalties and Interest for Late Filing or Payment

Missing the due date for filing Form 945 can be costly. The IRS imposes multiple penalties and charges interest on unpaid balances. Understanding these consequences can help you take action quickly to reduce your total amount owed and avoid further complications.

Failure to File Penalty

If you fail to file Form 945 on time, the IRS assesses a penalty of 5% of the unpaid taxes per month (or part of a month) that the return is late.

The maximum penalty is 25% of the unpaid federal tax liability.
If the return is more than 60 days late, the minimum penalty is the lesser of 100% of the unpaid balance or a flat dollar amount ($485 for 2022).

Failure to Pay Penalty

If you filed the return but did not pay the full amount of your federal income tax withheld, the IRS charges a 0.5% penalty per month on the unpaid balance.

This penalty also caps at 25% of the total taxes owed.
If you set up an installment agreement, the monthly penalty may drop to 0.25%.

Failure to Deposit Penalty

Employers are required to follow the IRS-assigned deposit schedule (monthly or semiweekly). Deposits not made on time trigger escalating penalties:

2% for deposits 1–5 days late
5% for deposits 6–15 days late
10% for deposits more than 15 days late
15% if the amount remains unpaid after the IRS issues a notice and demand for payment

Interest Charges

In addition to penalties, the IRS charges interest on the unpaid tax and any penalties.

Interest is calculated daily at the federal short-term rate plus 3%.
Rates adjust quarterly so that balances may accrue at different percentages over time.
Interest continues until the full payment is made.

Example Scenario

Suppose a nonprofit failed to file its 2022 Form 945, leaving $10,000 in withheld taxes.

Failure to file penalty after 5 months: $2,500 (25% maximum)
Failure to pay penalty over 12 months: $600 (0.5% per month)
Interest charges (assuming 7% annual average): about $700

In this case, the organization would owe over $13,800 on a $10,000 liability. Taking action quickly by filing the return, arranging payment, or applying for penalty relief can minimize these costs.

Trust Fund Recovery Penalty (TFRP) Explained

The Trust Fund Recovery Penalty (TFRP) is one of a business's most serious consequences if it fails to turn over withheld taxes to the IRS. Trust fund taxes include federal income tax withheld and backup withholding amounts collected from individuals. Because these funds are considered the government’s property, the IRS imposes a penalty equal to 100% of the unpaid balance when not remitted.

Who Can Be Held Liable

The IRS may assess the TFRP against multiple people in a business, not just owners. Liability is based on who had control and responsibility for tax payments and whether they acted willfully in failing to pay. Those who may be held personally responsible include:

Corporate officers or executives, such as presidents, vice presidents, and treasurers, can be personally assessed for unpaid trust fund taxes.
Partners or LLC members who have authority over financial operations may also be held liable.
Employees who control payroll, deposits, or the organization’s checkbook can face personal responsibility.
Third parties, including bookkeepers or CPAs who had signing authority and decision-making power, may also be assessed.
Authorized agents designated to manage business funds can be held responsible if they fail to remit trust fund taxes.

How the IRS Determines Responsibility

To determine who is liable, the IRS considers:

The IRS considers whether the person had the authority to sign checks or approve payments when determining liability.
They look at who had control over business accounts and the deposit schedule.
Decision-making power regarding which creditors and expenses to pay is also a factor.
The IRS reviews whether the individual knew that withheld taxes were not being remitted.
Evidence of willful disregard, such as paying other bills before paying the IRS, is weighed heavily in determining liability.

Protection Strategies

Businesses can reduce the risk of TFRP assessments by adopting strong compliance practices:

Prioritize withheld taxes first whenever funds are limited.
Segregate trust fund taxes in a separate account to ensure they are available for deposit.
Document decisions regarding tax payments in meeting notes or accounting records.
Use a third-party designee or paid preparer only if you can verify they are current with IRS rules.
Review deposits regularly to confirm that amounts match the liabilities reported on Form 945 or Form 945-A.

The TFRP is unique because it bypasses the business and makes individuals personally liable. Officers, employees, or even outside professionals may be pursued until the full amount of the trust fund taxes is collected. Preventing problems before they arise is the best defense against this penalty.

Resolution Options for Outstanding Tax Issues

If you missed the due date for filing Form 945 or owe a balance, RS provides several ways to resolve outstanding debts. These programs help businesses and individuals manage their federal tax liabilities while staying compliant with future filing obligations.

Installment Agreements / Payment Plans

An installment agreement allows you to pay your balance over time instead of in a lump sum.

Eligibility: Businesses that owe $25,000 or less in total withheld taxes may qualify for an online application. Larger balances require additional documentation.
Application process: Apply through the IRS Online Payment Agreement tool or by calling the IRS. You will need your employer identification number (EIN), business information, bank account details, and the proposed monthly payment.
Fees and terms: Setup fees range from $31 to $225, depending on the payment method. Interest and penalties continue to accrue until the full amount is paid.
Compliance requirements: You must continue to file all future returns on time and make required deposits.

Penalty Abatement

The IRS may reduce or remove penalties if you qualify for penalty relief.

First Time Abate (FTA): Available if you have filed all required returns, paid or arranged to pay your balance, and had no penalties in the three prior years.
Reasonable Cause Relief: Granted when circumstances beyond your control prevented timely filing or payment. Examples include natural disasters or severe weather; serious illness or death of a responsible person; records destroyed by fire, theft, or casualty; or reliance on incorrect advice from a qualified authorized agent or tax professional.
How to request: Submit Form 843 or respond to an IRS notice with an explanation and supporting documentation.

Offer in Compromise (OIC)

An OIC lets you settle your federal tax liability for less than the full balance if paying in full would cause hardship.

Eligibility types: Doubt as to collectibility means you cannot pay the full balance with your income and assets. Doubt as to liability applies if you do not believe the assessed tax is correct. Effective tax administration applies when paying in full, which would be unfair due to exceptional circumstances.
Process and required forms: Submit Form 656 (OIC application). Provide Form 433-A (for individuals) or Form 433-B (for businesses) showing detailed financials. Pay a $205 application fee unless you qualify for low-income certification.
Initial payment: Typically 20% of the offer amount if proposing a lump sum.

Currently Not Collectible (CNC) Status

You may qualify for CNC status if your organization cannot pay any portion of its taxes without creating financial hardship.

When to consider: Monthly expenses exceed income, or liquidating assets would prevent business operations.
Process: Contact the IRS, provide financial information on Form 433-B, and demonstrate that paying would leave no funds for essential obligations.
Limitations: Penalties and interest continue to accrue. The IRS reviews your case periodically and may reinstate collection if your finances improve. The collection statute continues to run, generally for 10 years.

These resolution options can provide relief, but each requires careful documentation and compliance with IRS rules. Choosing the right approach depends on your financial situation, business operations, and long-term ability to pay your tax obligations.

Frequently Asked Questions (FAQs)

What happens if I miss the 2022 Form 945 deadline?

If you missed the filing deadline, you should submit your 2022 Form 945 immediately. The IRS may assess penalties and interest based on the taxes withheld and reported liability. Filing late but paying promptly can reduce charges. You may qualify for First Time Abate relief if this is your first mistake in several years.

Can I file Form 945 electronically for 2022?

Yes, the IRS accepts electronic filing of prior-year returns through approved providers. Submitting the 2022 return electronically can help avoid mailing delays and ensure faster processing. If you owe a balance, you can make a direct debit payment or use a payment voucher. Always confirm that you are using the correct tax year version of the form.

Do I need to file if I had no withholding activity?

You usually do not need to file if your business had no nonpayroll payments subject to federal withholding in 2022. However, keeping an annual record confirming no reportable transactions is essential. Sometimes, the IRS may still expect a return, so review your business information and confirm with a tax professional if uncertain.

How much are penalties and interest for a late Form 945?

Penalties vary depending on the situation. The failure to file penalty is generally 5% per month up to 25% of the federal tax liability, while the failure to pay penalty is 0.5% per month. Late deposits may add 2–15% more. The IRS also charges daily compounding interest until the full payment is received and processed.

Who can be held personally liable for Form 945 taxes?

The IRS may apply the Trust Fund Recovery Penalty if withheld federal taxes are not paid. Liability can extend to business officers, partners, employees, or an authorized agent controlling deposits. Even a paid preparer or bookkeeper with authority may be at risk. The IRS looks at responsibility, authority, and willfulness when determining whether someone is personally liable.

Frequently Asked Questions

Unfiled 2022 Form 945: How to File, Penalties, and Relief Options

Filing IRS forms on time is one of the most critical responsibilities for businesses and organizations that handle nonpayroll payments. Form 945, Annual Return of Withheld Federal Income Tax, reports federal income tax withheld from pensions, annuities, IRA distributions, gambling winnings, military retirement, and other payments. Even if you missed the deadline for the 2022 tax year, submitting an accurate return now is critical to staying compliant and avoiding escalating penalties.

Many businesses assume that only payroll taxes matter, but the IRS requires nonpayroll withholding to be reported separately. Filing Form 945 ensures that your federal tax liability is recorded correctly and that withheld taxes reach the government as the law requires. Late filers often face interest charges and multiple penalties, but the IRS also provides structured options for resolution, including installment agreements, penalty relief programs, and sometimes, settlement opportunities. Understanding these rules can help protect your organization and its responsible persons from unnecessary financial strain.

This guide will walk you through the entire process of filing an unfiled 2022 Form 945. You will learn how to determine whether you must file, how to complete each return line, where to find the correct instructions, and what penalties apply if you are late. We will also explain advanced issues such as the Trust Fund Recovery Penalty, review options for resolving tax debt, and share real-world examples. By the end, you will have a clear roadmap for filing Form 945 and resolving IRS issues confidently.

Understanding Form 945: The Basics

Form 945, officially titled the Annual Return of Withheld Federal Income Tax, is used by businesses and organizations to report federal income tax withheld from certain nonpayroll payments. This is different from payroll taxes, which are reported on Form 941. If your business withheld taxes from pensions, annuities, or other covered distributions during the calendar year, you are responsible for filing this form with the IRS. Filing ensures that your organization accurately records its federal tax liability and properly accounts for all taxes withheld. See the IRS About Form 945 page for the official form and instructions.

Form 945 vs. Form 941

The key difference between these two forms is the type of payments reported:

Form 941: This covers wages, salaries, and regular payroll withholdings.
Form 945: This applies only to nonpayroll income distributions, such as retirement plan withdrawals or certain gambling payouts.

This separation is vital because filing the wrong form may create reporting errors that require correction through an adjusted annual return, such as Form 945-X.

Who Must File Form 945?

The IRS requires filing Form 945 if you withheld or were required to withhold federal income tax on any of the following payments during the tax year:

Pensions and annuities: This includes 401(k), 403(b), and IRA distributions.
Military retirement payments: These are taxable distributions to retired service members.
Gambling winnings: This applies to winnings above the reporting threshold.
Indian gaming profits: These are distributions subject to withholding.
Alaska Native Corporation dividends: These apply when shareholders elect voluntary withholding.
Backup withholding: This applies if payees did not provide a correct taxpayer identification number.

You generally do not need to file if you had no nonpayroll payments subject to withholding during the year. However, the IRS may still expect a record of your annual return, so keeping an accurate yearly record is essential.

Why This Matters

For businesses and nonprofits, filing Form 945 is more than a compliance step—it helps avoid penalties and protects officers, partners, or employees from personal liability under certain circumstances. By filing on time and reporting the correct total taxes and withheld federal income tax, you ensure the IRS has a complete picture of your organization’s obligations for the calendar year.

Step-by-Step Filing Instructions for the 2022 Form 945

Filing Form 945 may feel complex, but breaking the process into steps makes it manageable. Use the guide below to ensure you complete form entries correctly, meet IRS rules, and avoid unnecessary penalties.

1. Determine Your Filing Requirements

Start by confirming whether you must file Form 945 for the 2022 tax year. You must file if you withheld federal income tax from nonpayroll payments, such as pensions, annuities, IRA distributions, gambling winnings, military retirement, Indian gaming profits, or certain corporate dividends. If no withholdings occurred, you generally do not file, but always verify your records before making this decision.

2. Calculate Total Tax Liability (Lines 1–3)

Line 1: Report all federal income tax withheld from applicable distributions.
Line 2: Enter the amount of backup withholding collected when payees failed to provide a taxpayer identification number.
Line 3: Add these together to calculate your total taxes.

This figure must match the amounts shown in the monthly summary section (Line 7) or, if applicable, Form 945-A for semiweekly depositors.

3. Report Deposits (Line 4)

On Line 4, enter your total deposits for 2022. This includes:

All deposits were made throughout the year
Any overpayment applied from a prior year
Adjustments made using Form 945-X (adjusted annual return)

If the IRS assigned you a deposit schedule as a monthly or semiweekly depositor, make sure deposits align with that classification.

4. Balance Due or Overpayment (Lines 5–6)

Line 5 Balance Due: If your total taxes are greater than your total deposits, you must pay the difference. Smaller balances may be sent with a payment voucher (Form 945-V).
Line 6 Overpayment: If deposits exceed your liability, you may request a refund or apply the overpayment to your next return. You cannot complete both Line 5 and Line 6.

5. Monthly Summary or Form 945-A (Line 7)

Complete the monthly summary section on Line 7 if you were a monthly depositor for the entire calendar year and your total liability was $2,500 or more. If you were a semiweekly depositor or switched schedules during the year, file Form 945-A instead.

6. Authorized Signatures

An authorized person must sign the form if it is for a sole proprietorship, and this must be the business owner.
For a corporation or LLC, the form must be signed by the president, vice president, or another authorized officer.
For a partnership or LLC, a responsible partner or member must sign the form.
For a trust or estate, the fiduciary is the one required to sign.

You may also designate a paid preparer with a preparer tax identification number (PTIN) or a third-party designee authorized to discuss the return with the IRS. Always include the signer’s title, business name, and address in the appropriate fields.

7. File Your Return

Electronic filing: The IRS strongly encourages e-filing through approved providers. If the due date falls on a legal holiday or a business day closure, file the next day.
Paper filing: Mail the form to the correct IRS location listed in the instructions, based on your state and whether a full payment is enclosed.
Retain a copy in your annual record for compliance and reference.

By carefully following these steps, you can complete Form 945, submit it correctly, and reduce the risk of penalties.

Where to Get the Correct Forms and Instructions

Finding the correct version of Form 945 is essential, especially if filing a return from a prior year, like 2022. Using the wrong form or outdated instructions can create errors that may delay processing or trigger unnecessary IRS notices. Below are the best sources for obtaining the forms you need.

IRS.gov Forms Page: The IRS maintains a dedicated page for employment-related forms, including Form 945. You can download the current year’s annual return and instructions in PDF format. This page also links to Form 945-A, Form 945-X (adjusted yearly return), and Form 945-V (payment voucher).
Archived 2022 Forms: Since you are filing a late return, you must use the 2022 version of Form 945 and its instructions. The IRS provides a prior-year forms archive to access and download the correct version. Filing the wrong tax year form can result in rejection or misapplied payments.
Phone and Mail Orders: If you prefer paper copies, call the IRS at 800-829-3676 to request forms by mail. Orders are typically processed within 10 business days, though mailing times may vary depending on your business address.
University and Academic Tax Clinics: Several accredited law schools and universities maintain comprehensive tax form libraries. For reference, institutions such as Georgetown University Law Center, NYU, and Stanford may have copies of prior-year forms. While they cannot substitute official IRS sources, they can provide reliable academic resources for research.

By using these sources, you can ensure that you have the proper forms, instructions, and supplemental documents. Locating the correct 2022 Form 945 and related materials helps you complete form entries accurately and maintain compliance with IRS filing rules.

IRS Penalties and Interest for Late Filing or Payment

Missing the due date for filing Form 945 can be costly. The IRS imposes multiple penalties and charges interest on unpaid balances. Understanding these consequences can help you take action quickly to reduce your total amount owed and avoid further complications.

Failure to File Penalty

If you fail to file Form 945 on time, the IRS assesses a penalty of 5% of the unpaid taxes per month (or part of a month) that the return is late.

The maximum penalty is 25% of the unpaid federal tax liability.
If the return is more than 60 days late, the minimum penalty is the lesser of 100% of the unpaid balance or a flat dollar amount ($485 for 2022).

Failure to Pay Penalty

If you filed the return but did not pay the full amount of your federal income tax withheld, the IRS charges a 0.5% penalty per month on the unpaid balance.

This penalty also caps at 25% of the total taxes owed.
If you set up an installment agreement, the monthly penalty may drop to 0.25%.

Failure to Deposit Penalty

Employers are required to follow the IRS-assigned deposit schedule (monthly or semiweekly). Deposits not made on time trigger escalating penalties:

2% for deposits 1–5 days late
5% for deposits 6–15 days late
10% for deposits more than 15 days late
15% if the amount remains unpaid after the IRS issues a notice and demand for payment

Interest Charges

In addition to penalties, the IRS charges interest on the unpaid tax and any penalties.

Interest is calculated daily at the federal short-term rate plus 3%.
Rates adjust quarterly so that balances may accrue at different percentages over time.
Interest continues until the full payment is made.

Example Scenario

Suppose a nonprofit failed to file its 2022 Form 945, leaving $10,000 in withheld taxes.

Failure to file penalty after 5 months: $2,500 (25% maximum)
Failure to pay penalty over 12 months: $600 (0.5% per month)
Interest charges (assuming 7% annual average): about $700

In this case, the organization would owe over $13,800 on a $10,000 liability. Taking action quickly by filing the return, arranging payment, or applying for penalty relief can minimize these costs.

Trust Fund Recovery Penalty (TFRP) Explained

The Trust Fund Recovery Penalty (TFRP) is one of a business's most serious consequences if it fails to turn over withheld taxes to the IRS. Trust fund taxes include federal income tax withheld and backup withholding amounts collected from individuals. Because these funds are considered the government’s property, the IRS imposes a penalty equal to 100% of the unpaid balance when not remitted.

Who Can Be Held Liable

The IRS may assess the TFRP against multiple people in a business, not just owners. Liability is based on who had control and responsibility for tax payments and whether they acted willfully in failing to pay. Those who may be held personally responsible include:

Corporate officers or executives, such as presidents, vice presidents, and treasurers, can be personally assessed for unpaid trust fund taxes.
Partners or LLC members who have authority over financial operations may also be held liable.
Employees who control payroll, deposits, or the organization’s checkbook can face personal responsibility.
Third parties, including bookkeepers or CPAs who had signing authority and decision-making power, may also be assessed.
Authorized agents designated to manage business funds can be held responsible if they fail to remit trust fund taxes.

How the IRS Determines Responsibility

To determine who is liable, the IRS considers:

The IRS considers whether the person had the authority to sign checks or approve payments when determining liability.
They look at who had control over business accounts and the deposit schedule.
Decision-making power regarding which creditors and expenses to pay is also a factor.
The IRS reviews whether the individual knew that withheld taxes were not being remitted.
Evidence of willful disregard, such as paying other bills before paying the IRS, is weighed heavily in determining liability.

Protection Strategies

Businesses can reduce the risk of TFRP assessments by adopting strong compliance practices:

Prioritize withheld taxes first whenever funds are limited.
Segregate trust fund taxes in a separate account to ensure they are available for deposit.
Document decisions regarding tax payments in meeting notes or accounting records.
Use a third-party designee or paid preparer only if you can verify they are current with IRS rules.
Review deposits regularly to confirm that amounts match the liabilities reported on Form 945 or Form 945-A.

The TFRP is unique because it bypasses the business and makes individuals personally liable. Officers, employees, or even outside professionals may be pursued until the full amount of the trust fund taxes is collected. Preventing problems before they arise is the best defense against this penalty.

Resolution Options for Outstanding Tax Issues

If you missed the due date for filing Form 945 or owe a balance, RS provides several ways to resolve outstanding debts. These programs help businesses and individuals manage their federal tax liabilities while staying compliant with future filing obligations.

Installment Agreements / Payment Plans

An installment agreement allows you to pay your balance over time instead of in a lump sum.

Eligibility: Businesses that owe $25,000 or less in total withheld taxes may qualify for an online application. Larger balances require additional documentation.
Application process: Apply through the IRS Online Payment Agreement tool or by calling the IRS. You will need your employer identification number (EIN), business information, bank account details, and the proposed monthly payment.
Fees and terms: Setup fees range from $31 to $225, depending on the payment method. Interest and penalties continue to accrue until the full amount is paid.
Compliance requirements: You must continue to file all future returns on time and make required deposits.

Penalty Abatement

The IRS may reduce or remove penalties if you qualify for penalty relief.

First Time Abate (FTA): Available if you have filed all required returns, paid or arranged to pay your balance, and had no penalties in the three prior years.
Reasonable Cause Relief: Granted when circumstances beyond your control prevented timely filing or payment. Examples include natural disasters or severe weather; serious illness or death of a responsible person; records destroyed by fire, theft, or casualty; or reliance on incorrect advice from a qualified authorized agent or tax professional.
How to request: Submit Form 843 or respond to an IRS notice with an explanation and supporting documentation.

Offer in Compromise (OIC)

An OIC lets you settle your federal tax liability for less than the full balance if paying in full would cause hardship.

Eligibility types: Doubt as to collectibility means you cannot pay the full balance with your income and assets. Doubt as to liability applies if you do not believe the assessed tax is correct. Effective tax administration applies when paying in full, which would be unfair due to exceptional circumstances.
Process and required forms: Submit Form 656 (OIC application). Provide Form 433-A (for individuals) or Form 433-B (for businesses) showing detailed financials. Pay a $205 application fee unless you qualify for low-income certification.
Initial payment: Typically 20% of the offer amount if proposing a lump sum.

Currently Not Collectible (CNC) Status

You may qualify for CNC status if your organization cannot pay any portion of its taxes without creating financial hardship.

When to consider: Monthly expenses exceed income, or liquidating assets would prevent business operations.
Process: Contact the IRS, provide financial information on Form 433-B, and demonstrate that paying would leave no funds for essential obligations.
Limitations: Penalties and interest continue to accrue. The IRS reviews your case periodically and may reinstate collection if your finances improve. The collection statute continues to run, generally for 10 years.

These resolution options can provide relief, but each requires careful documentation and compliance with IRS rules. Choosing the right approach depends on your financial situation, business operations, and long-term ability to pay your tax obligations.

Frequently Asked Questions (FAQs)

What happens if I miss the 2022 Form 945 deadline?

If you missed the filing deadline, you should submit your 2022 Form 945 immediately. The IRS may assess penalties and interest based on the taxes withheld and reported liability. Filing late but paying promptly can reduce charges. You may qualify for First Time Abate relief if this is your first mistake in several years.

Can I file Form 945 electronically for 2022?

Yes, the IRS accepts electronic filing of prior-year returns through approved providers. Submitting the 2022 return electronically can help avoid mailing delays and ensure faster processing. If you owe a balance, you can make a direct debit payment or use a payment voucher. Always confirm that you are using the correct tax year version of the form.

Do I need to file if I had no withholding activity?

You usually do not need to file if your business had no nonpayroll payments subject to federal withholding in 2022. However, keeping an annual record confirming no reportable transactions is essential. Sometimes, the IRS may still expect a return, so review your business information and confirm with a tax professional if uncertain.

How much are penalties and interest for a late Form 945?

Penalties vary depending on the situation. The failure to file penalty is generally 5% per month up to 25% of the federal tax liability, while the failure to pay penalty is 0.5% per month. Late deposits may add 2–15% more. The IRS also charges daily compounding interest until the full payment is received and processed.

Who can be held personally liable for Form 945 taxes?

The IRS may apply the Trust Fund Recovery Penalty if withheld federal taxes are not paid. Liability can extend to business officers, partners, employees, or an authorized agent controlling deposits. Even a paid preparer or bookkeeper with authority may be at risk. The IRS looks at responsibility, authority, and willfulness when determining whether someone is personally liable.

Frequently Asked Questions

Unfiled 2022 Form 945: How to File, Penalties, and Relief Options

Filing IRS forms on time is one of the most critical responsibilities for businesses and organizations that handle nonpayroll payments. Form 945, Annual Return of Withheld Federal Income Tax, reports federal income tax withheld from pensions, annuities, IRA distributions, gambling winnings, military retirement, and other payments. Even if you missed the deadline for the 2022 tax year, submitting an accurate return now is critical to staying compliant and avoiding escalating penalties.

Many businesses assume that only payroll taxes matter, but the IRS requires nonpayroll withholding to be reported separately. Filing Form 945 ensures that your federal tax liability is recorded correctly and that withheld taxes reach the government as the law requires. Late filers often face interest charges and multiple penalties, but the IRS also provides structured options for resolution, including installment agreements, penalty relief programs, and sometimes, settlement opportunities. Understanding these rules can help protect your organization and its responsible persons from unnecessary financial strain.

This guide will walk you through the entire process of filing an unfiled 2022 Form 945. You will learn how to determine whether you must file, how to complete each return line, where to find the correct instructions, and what penalties apply if you are late. We will also explain advanced issues such as the Trust Fund Recovery Penalty, review options for resolving tax debt, and share real-world examples. By the end, you will have a clear roadmap for filing Form 945 and resolving IRS issues confidently.

Understanding Form 945: The Basics

Form 945, officially titled the Annual Return of Withheld Federal Income Tax, is used by businesses and organizations to report federal income tax withheld from certain nonpayroll payments. This is different from payroll taxes, which are reported on Form 941. If your business withheld taxes from pensions, annuities, or other covered distributions during the calendar year, you are responsible for filing this form with the IRS. Filing ensures that your organization accurately records its federal tax liability and properly accounts for all taxes withheld. See the IRS About Form 945 page for the official form and instructions.

Form 945 vs. Form 941

The key difference between these two forms is the type of payments reported:

Form 941: This covers wages, salaries, and regular payroll withholdings.
Form 945: This applies only to nonpayroll income distributions, such as retirement plan withdrawals or certain gambling payouts.

This separation is vital because filing the wrong form may create reporting errors that require correction through an adjusted annual return, such as Form 945-X.

Who Must File Form 945?

The IRS requires filing Form 945 if you withheld or were required to withhold federal income tax on any of the following payments during the tax year:

Pensions and annuities: This includes 401(k), 403(b), and IRA distributions.
Military retirement payments: These are taxable distributions to retired service members.
Gambling winnings: This applies to winnings above the reporting threshold.
Indian gaming profits: These are distributions subject to withholding.
Alaska Native Corporation dividends: These apply when shareholders elect voluntary withholding.
Backup withholding: This applies if payees did not provide a correct taxpayer identification number.

You generally do not need to file if you had no nonpayroll payments subject to withholding during the year. However, the IRS may still expect a record of your annual return, so keeping an accurate yearly record is essential.

Why This Matters

For businesses and nonprofits, filing Form 945 is more than a compliance step—it helps avoid penalties and protects officers, partners, or employees from personal liability under certain circumstances. By filing on time and reporting the correct total taxes and withheld federal income tax, you ensure the IRS has a complete picture of your organization’s obligations for the calendar year.

Step-by-Step Filing Instructions for the 2022 Form 945

Filing Form 945 may feel complex, but breaking the process into steps makes it manageable. Use the guide below to ensure you complete form entries correctly, meet IRS rules, and avoid unnecessary penalties.

1. Determine Your Filing Requirements

Start by confirming whether you must file Form 945 for the 2022 tax year. You must file if you withheld federal income tax from nonpayroll payments, such as pensions, annuities, IRA distributions, gambling winnings, military retirement, Indian gaming profits, or certain corporate dividends. If no withholdings occurred, you generally do not file, but always verify your records before making this decision.

2. Calculate Total Tax Liability (Lines 1–3)

Line 1: Report all federal income tax withheld from applicable distributions.
Line 2: Enter the amount of backup withholding collected when payees failed to provide a taxpayer identification number.
Line 3: Add these together to calculate your total taxes.

This figure must match the amounts shown in the monthly summary section (Line 7) or, if applicable, Form 945-A for semiweekly depositors.

3. Report Deposits (Line 4)

On Line 4, enter your total deposits for 2022. This includes:

All deposits were made throughout the year
Any overpayment applied from a prior year
Adjustments made using Form 945-X (adjusted annual return)

If the IRS assigned you a deposit schedule as a monthly or semiweekly depositor, make sure deposits align with that classification.

4. Balance Due or Overpayment (Lines 5–6)

Line 5 Balance Due: If your total taxes are greater than your total deposits, you must pay the difference. Smaller balances may be sent with a payment voucher (Form 945-V).
Line 6 Overpayment: If deposits exceed your liability, you may request a refund or apply the overpayment to your next return. You cannot complete both Line 5 and Line 6.

5. Monthly Summary or Form 945-A (Line 7)

Complete the monthly summary section on Line 7 if you were a monthly depositor for the entire calendar year and your total liability was $2,500 or more. If you were a semiweekly depositor or switched schedules during the year, file Form 945-A instead.

6. Authorized Signatures

An authorized person must sign the form if it is for a sole proprietorship, and this must be the business owner.
For a corporation or LLC, the form must be signed by the president, vice president, or another authorized officer.
For a partnership or LLC, a responsible partner or member must sign the form.
For a trust or estate, the fiduciary is the one required to sign.

You may also designate a paid preparer with a preparer tax identification number (PTIN) or a third-party designee authorized to discuss the return with the IRS. Always include the signer’s title, business name, and address in the appropriate fields.

7. File Your Return

Electronic filing: The IRS strongly encourages e-filing through approved providers. If the due date falls on a legal holiday or a business day closure, file the next day.
Paper filing: Mail the form to the correct IRS location listed in the instructions, based on your state and whether a full payment is enclosed.
Retain a copy in your annual record for compliance and reference.

By carefully following these steps, you can complete Form 945, submit it correctly, and reduce the risk of penalties.

Where to Get the Correct Forms and Instructions

Finding the correct version of Form 945 is essential, especially if filing a return from a prior year, like 2022. Using the wrong form or outdated instructions can create errors that may delay processing or trigger unnecessary IRS notices. Below are the best sources for obtaining the forms you need.

IRS.gov Forms Page: The IRS maintains a dedicated page for employment-related forms, including Form 945. You can download the current year’s annual return and instructions in PDF format. This page also links to Form 945-A, Form 945-X (adjusted yearly return), and Form 945-V (payment voucher).
Archived 2022 Forms: Since you are filing a late return, you must use the 2022 version of Form 945 and its instructions. The IRS provides a prior-year forms archive to access and download the correct version. Filing the wrong tax year form can result in rejection or misapplied payments.
Phone and Mail Orders: If you prefer paper copies, call the IRS at 800-829-3676 to request forms by mail. Orders are typically processed within 10 business days, though mailing times may vary depending on your business address.
University and Academic Tax Clinics: Several accredited law schools and universities maintain comprehensive tax form libraries. For reference, institutions such as Georgetown University Law Center, NYU, and Stanford may have copies of prior-year forms. While they cannot substitute official IRS sources, they can provide reliable academic resources for research.

By using these sources, you can ensure that you have the proper forms, instructions, and supplemental documents. Locating the correct 2022 Form 945 and related materials helps you complete form entries accurately and maintain compliance with IRS filing rules.

IRS Penalties and Interest for Late Filing or Payment

Missing the due date for filing Form 945 can be costly. The IRS imposes multiple penalties and charges interest on unpaid balances. Understanding these consequences can help you take action quickly to reduce your total amount owed and avoid further complications.

Failure to File Penalty

If you fail to file Form 945 on time, the IRS assesses a penalty of 5% of the unpaid taxes per month (or part of a month) that the return is late.

The maximum penalty is 25% of the unpaid federal tax liability.
If the return is more than 60 days late, the minimum penalty is the lesser of 100% of the unpaid balance or a flat dollar amount ($485 for 2022).

Failure to Pay Penalty

If you filed the return but did not pay the full amount of your federal income tax withheld, the IRS charges a 0.5% penalty per month on the unpaid balance.

This penalty also caps at 25% of the total taxes owed.
If you set up an installment agreement, the monthly penalty may drop to 0.25%.

Failure to Deposit Penalty

Employers are required to follow the IRS-assigned deposit schedule (monthly or semiweekly). Deposits not made on time trigger escalating penalties:

2% for deposits 1–5 days late
5% for deposits 6–15 days late
10% for deposits more than 15 days late
15% if the amount remains unpaid after the IRS issues a notice and demand for payment

Interest Charges

In addition to penalties, the IRS charges interest on the unpaid tax and any penalties.

Interest is calculated daily at the federal short-term rate plus 3%.
Rates adjust quarterly so that balances may accrue at different percentages over time.
Interest continues until the full payment is made.

Example Scenario

Suppose a nonprofit failed to file its 2022 Form 945, leaving $10,000 in withheld taxes.

Failure to file penalty after 5 months: $2,500 (25% maximum)
Failure to pay penalty over 12 months: $600 (0.5% per month)
Interest charges (assuming 7% annual average): about $700

In this case, the organization would owe over $13,800 on a $10,000 liability. Taking action quickly by filing the return, arranging payment, or applying for penalty relief can minimize these costs.

Trust Fund Recovery Penalty (TFRP) Explained

The Trust Fund Recovery Penalty (TFRP) is one of a business's most serious consequences if it fails to turn over withheld taxes to the IRS. Trust fund taxes include federal income tax withheld and backup withholding amounts collected from individuals. Because these funds are considered the government’s property, the IRS imposes a penalty equal to 100% of the unpaid balance when not remitted.

Who Can Be Held Liable

The IRS may assess the TFRP against multiple people in a business, not just owners. Liability is based on who had control and responsibility for tax payments and whether they acted willfully in failing to pay. Those who may be held personally responsible include:

Corporate officers or executives, such as presidents, vice presidents, and treasurers, can be personally assessed for unpaid trust fund taxes.
Partners or LLC members who have authority over financial operations may also be held liable.
Employees who control payroll, deposits, or the organization’s checkbook can face personal responsibility.
Third parties, including bookkeepers or CPAs who had signing authority and decision-making power, may also be assessed.
Authorized agents designated to manage business funds can be held responsible if they fail to remit trust fund taxes.

How the IRS Determines Responsibility

To determine who is liable, the IRS considers:

The IRS considers whether the person had the authority to sign checks or approve payments when determining liability.
They look at who had control over business accounts and the deposit schedule.
Decision-making power regarding which creditors and expenses to pay is also a factor.
The IRS reviews whether the individual knew that withheld taxes were not being remitted.
Evidence of willful disregard, such as paying other bills before paying the IRS, is weighed heavily in determining liability.

Protection Strategies

Businesses can reduce the risk of TFRP assessments by adopting strong compliance practices:

Prioritize withheld taxes first whenever funds are limited.
Segregate trust fund taxes in a separate account to ensure they are available for deposit.
Document decisions regarding tax payments in meeting notes or accounting records.
Use a third-party designee or paid preparer only if you can verify they are current with IRS rules.
Review deposits regularly to confirm that amounts match the liabilities reported on Form 945 or Form 945-A.

The TFRP is unique because it bypasses the business and makes individuals personally liable. Officers, employees, or even outside professionals may be pursued until the full amount of the trust fund taxes is collected. Preventing problems before they arise is the best defense against this penalty.

Resolution Options for Outstanding Tax Issues

If you missed the due date for filing Form 945 or owe a balance, RS provides several ways to resolve outstanding debts. These programs help businesses and individuals manage their federal tax liabilities while staying compliant with future filing obligations.

Installment Agreements / Payment Plans

An installment agreement allows you to pay your balance over time instead of in a lump sum.

Eligibility: Businesses that owe $25,000 or less in total withheld taxes may qualify for an online application. Larger balances require additional documentation.
Application process: Apply through the IRS Online Payment Agreement tool or by calling the IRS. You will need your employer identification number (EIN), business information, bank account details, and the proposed monthly payment.
Fees and terms: Setup fees range from $31 to $225, depending on the payment method. Interest and penalties continue to accrue until the full amount is paid.
Compliance requirements: You must continue to file all future returns on time and make required deposits.

Penalty Abatement

The IRS may reduce or remove penalties if you qualify for penalty relief.

First Time Abate (FTA): Available if you have filed all required returns, paid or arranged to pay your balance, and had no penalties in the three prior years.
Reasonable Cause Relief: Granted when circumstances beyond your control prevented timely filing or payment. Examples include natural disasters or severe weather; serious illness or death of a responsible person; records destroyed by fire, theft, or casualty; or reliance on incorrect advice from a qualified authorized agent or tax professional.
How to request: Submit Form 843 or respond to an IRS notice with an explanation and supporting documentation.

Offer in Compromise (OIC)

An OIC lets you settle your federal tax liability for less than the full balance if paying in full would cause hardship.

Eligibility types: Doubt as to collectibility means you cannot pay the full balance with your income and assets. Doubt as to liability applies if you do not believe the assessed tax is correct. Effective tax administration applies when paying in full, which would be unfair due to exceptional circumstances.
Process and required forms: Submit Form 656 (OIC application). Provide Form 433-A (for individuals) or Form 433-B (for businesses) showing detailed financials. Pay a $205 application fee unless you qualify for low-income certification.
Initial payment: Typically 20% of the offer amount if proposing a lump sum.

Currently Not Collectible (CNC) Status

You may qualify for CNC status if your organization cannot pay any portion of its taxes without creating financial hardship.

When to consider: Monthly expenses exceed income, or liquidating assets would prevent business operations.
Process: Contact the IRS, provide financial information on Form 433-B, and demonstrate that paying would leave no funds for essential obligations.
Limitations: Penalties and interest continue to accrue. The IRS reviews your case periodically and may reinstate collection if your finances improve. The collection statute continues to run, generally for 10 years.

These resolution options can provide relief, but each requires careful documentation and compliance with IRS rules. Choosing the right approach depends on your financial situation, business operations, and long-term ability to pay your tax obligations.

Frequently Asked Questions (FAQs)

What happens if I miss the 2022 Form 945 deadline?

If you missed the filing deadline, you should submit your 2022 Form 945 immediately. The IRS may assess penalties and interest based on the taxes withheld and reported liability. Filing late but paying promptly can reduce charges. You may qualify for First Time Abate relief if this is your first mistake in several years.

Can I file Form 945 electronically for 2022?

Yes, the IRS accepts electronic filing of prior-year returns through approved providers. Submitting the 2022 return electronically can help avoid mailing delays and ensure faster processing. If you owe a balance, you can make a direct debit payment or use a payment voucher. Always confirm that you are using the correct tax year version of the form.

Do I need to file if I had no withholding activity?

You usually do not need to file if your business had no nonpayroll payments subject to federal withholding in 2022. However, keeping an annual record confirming no reportable transactions is essential. Sometimes, the IRS may still expect a return, so review your business information and confirm with a tax professional if uncertain.

How much are penalties and interest for a late Form 945?

Penalties vary depending on the situation. The failure to file penalty is generally 5% per month up to 25% of the federal tax liability, while the failure to pay penalty is 0.5% per month. Late deposits may add 2–15% more. The IRS also charges daily compounding interest until the full payment is received and processed.

Who can be held personally liable for Form 945 taxes?

The IRS may apply the Trust Fund Recovery Penalty if withheld federal taxes are not paid. Liability can extend to business officers, partners, employees, or an authorized agent controlling deposits. Even a paid preparer or bookkeeper with authority may be at risk. The IRS looks at responsibility, authority, and willfulness when determining whether someone is personally liable.

Unfiled 2022 Form 945: How to File, Penalties, and Relief Options

Understanding Form 945: The Basics

Form 945 vs. Form 941

Who Must File Form 945?

Why This Matters

Step-by-Step Filing Instructions for the 2022 Form 945

1. Determine Your Filing Requirements

2. Calculate Total Tax Liability (Lines 1–3)

3. Report Deposits (Line 4)

4. Balance Due or Overpayment (Lines 5–6)

5. Monthly Summary or Form 945-A (Line 7)

6. Authorized Signatures

7. File Your Return

Where to Get the Correct Forms and Instructions

IRS Penalties and Interest for Late Filing or Payment

Failure to File Penalty

Failure to Pay Penalty

Failure to Deposit Penalty

Interest Charges

Example Scenario

Trust Fund Recovery Penalty (TFRP) Explained

Who Can Be Held Liable

How the IRS Determines Responsibility

Protection Strategies

Resolution Options for Outstanding Tax Issues

Installment Agreements / Payment Plans

Penalty Abatement

Offer in Compromise (OIC)

Currently Not Collectible (CNC) Status

Frequently Asked Questions (FAQs)

What happens if I miss the 2022 Form 945 deadline?

Can I file Form 945 electronically for 2022?

Do I need to file if I had no withholding activity?

How much are penalties and interest for a late Form 945?

Who can be held personally liable for Form 945 taxes?

Frequently Asked Questions

Related Articles

Unfiled 2022 Form 945: How to File, Penalties, and Relief Options

Understanding Form 945: The Basics

Form 945 vs. Form 941

Who Must File Form 945?

Why This Matters

Step-by-Step Filing Instructions for the 2022 Form 945

1. Determine Your Filing Requirements

2. Calculate Total Tax Liability (Lines 1–3)

3. Report Deposits (Line 4)

4. Balance Due or Overpayment (Lines 5–6)

5. Monthly Summary or Form 945-A (Line 7)

6. Authorized Signatures

7. File Your Return

Where to Get the Correct Forms and Instructions

IRS Penalties and Interest for Late Filing or Payment

Failure to File Penalty

Failure to Pay Penalty

Failure to Deposit Penalty

Interest Charges

Example Scenario

Trust Fund Recovery Penalty (TFRP) Explained

Who Can Be Held Liable

How the IRS Determines Responsibility

Protection Strategies

Resolution Options for Outstanding Tax Issues

Installment Agreements / Payment Plans

Penalty Abatement

Offer in Compromise (OIC)

Currently Not Collectible (CNC) Status

Frequently Asked Questions (FAQs)

What happens if I miss the 2022 Form 945 deadline?

Can I file Form 945 electronically for 2022?

Do I need to file if I had no withholding activity?

How much are penalties and interest for a late Form 945?

Who can be held personally liable for Form 945 taxes?

Frequently Asked Questions

Unfiled Returns by Year & Form Type

Unfiled 2022 Form 945: How to File, Penalties, and Relief Options

Understanding Form 945: The Basics

Form 945 vs. Form 941

Who Must File Form 945?

Why This Matters

Step-by-Step Filing Instructions for the 2022 Form 945