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Correcting Employment Taxes Instructions[630]

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Correcting Employment Taxes Instructions[630]
Department of the Treasury

Instructions for Form 945-X Internal Revenue Service



(January 2009)

Adjusted Annual Return of Withheld Federal Income Tax or Claim for Refund

Section references are to the Internal Revenue Code unless Do not use Form 945-X to correct Forms CT-1, 941,

otherwise noted. ! 943, or Form 944. Instead, use the “X” form that

CAUTION corresponds to those returns (Form CT-1 X, 941-X,



What’s New? 943-X, or Form 944-X).



New form. The Internal Revenue Service (IRS) developed

Form 945-X, Adjusted Annual Return of Withheld Federal

Income Tax or Claim for Refund, to replace Form 941c,

General Instructions:

Supporting Statement To Correct Information. Use Form 945-X Understanding Form 945-X

to make corrections to previously filed Forms 945. Do not

attach Form 945-X to your Form 945; file Form 945-X What Is the Purpose of Form 945-X?

separately.

Form 945-X will replace Form 843, Claim for Refund or Use Form 945-X to correct administrative errors only on a

Request for Abatement, for you to request a refund or previously filed Form 945. An administrative error occurs if the

abatement of overreported withheld federal income tax. federal income tax (including backup withholding) you reported

Continue to use Form 843 when requesting a refund or on Form 945 is not the amount you actually withheld from

abatement of assessed interest or penalties. payees. For example, if the total federal income tax you actually

withheld was incorrectly reported on Form 945 due to a

We believe you will find Form 945-X and its instructions mathematical or transposition error, this would be an

easier to understand and fill out than Form 941c. At the same administrative error.

time, the new form will enable the IRS to make corrections to

withheld federal income tax more accurately and efficiently. If you did not file a Form 945 for one or more years, do not

Please read both the form and these instructions carefully to use Form 945-X. Instead, file Form 945 for each of those years.

become familiar with the many changes. See also When Should You File Form 945-X? below.

Background. Treasury Decision 9405 changed the process Be sure to give us a detailed explanation on line 7 for each

for making interest-free adjustments to tax reported on Form correction that you show on Form 945-X.

945, Annual Return of Withheld Federal Income Tax, and for

filing a claim for refund. Treasury Decision 9405, 2008-32 I.R.B. Where Can You Get Help?

293, is available at www.irs.gov/irb/2008-32_irb/ar13.html. You

will use the revised adjustment process if you underreported tax For help filing Form 945-X or for questions about withheld

and are making a payment, or if you overreported tax and will federal income tax and tax corrections, you can:

be applying the credit to the Form 945 year during which you • call the IRS toll-free at 1-800-829-4933 (TTY/TDD for the

file Form 945-X. (However, see the CAUTION on page 2.) You hearing impaired at 1-800-829-4059),

will use the revised claim process if you overreported tax and • visit the IRS website at www.irs.gov and type “Correcting

are requesting a refund or abatement of the overreported Employment Taxes” in the “search” box, or

amount. • get Pub. 15 (Circular E), Employer’s Tax Guide.

We use the terms “correct” and “corrections” on Form 945-X See also How Can You Order Forms and Publications from

and in these instructions to include interest-free adjustments the IRS? on page 5.

under sections 6205 and 6413 and claims for refund and

abatement under sections 6402, 6414, and 6404. When Should You File Form 945-X?

If you have comments or suggestions for improving Form File Form 945-X when you discover an error on a previously

945-X or these instructions, we would be happy to hear from filed Form 945.

you. Write to the address shown in the Privacy Act and

Paperwork Reduction Act Notice in the Instructions for Form However, if your only errors on Form 945 relate to federal

945. tax liabilities reported on your Monthly Summary of Federal Tax

Liability in Form 945 or on Form 945-A, Annual Record of

New process for correcting withheld federal income tax. Federal Tax Liability, do not file Form 945-X. For more

After December 31, 2008, when you discover an error on a information about correcting federal tax liabilities reported on

previously filed Form 945, you must: your Monthly Summary of Federal Tax Liability in Form 945 or

• correct that error using Form 945-X, on Form 945-A, see the Form 945-A instructions.

• file a separate Form 945-X for each Form 945 that you are

correcting, and Due dates. The due date for filing Form 945-X to qualify for

• file Form 945-X separately. Do not file Form 945-X with Form interest-free adjustments for underpayments and overpayments

945. depends on when you discover an error and if you

underreported or overreported tax. If you underreported tax,

Beginning with 2009, Form 945 will no longer provide an see Underreported tax see page 2. For overreported amounts,

adjustment line (formerly line 3) for correcting prior year you may choose to either make an interest-free adjustment or

administrative errors. file a claim for refund or abatement. If you are correcting

Report the correction of underreported and overreported overreported amounts, see Overreported tax — credit and

amounts for the same year on a single Form 945-X, unless you Overreported tax — claim on page 2.

are requesting a refund or abatement. If you are requesting a If any due date falls on a Saturday, Sunday, or legal holiday,

refund or abatement and are correcting both underreported and you may file Form 945-X on the next business day. If we

overreported amounts, file one Form 945-X correcting the receive Form 945-X after the due date, we will treat Form 945-X

underreported amounts only and a second Form 945-X as filed on time if the envelope containing Form 945-X is

correcting the overreported amounts. properly addressed, contains sufficient postage, and is

Follow the chart on page 6 of these instructions for help in postmarked by the U.S. Postal Service on or before the due

choosing whether to use the adjustment process or the claim date, or sent by an IRS-designated private delivery service on

process. or before the due date. If you do not follow these guidelines, we



Cat. No. 20337I

will consider Form 945-X filed when it is actually received. See the adjustment process to file another Form 945-X to correct

Pub. 15 (Circular E) for more information on IRS-designated the underreported amounts only and pay any tax due.

private delivery services.

Underreported tax. If you are correcting underreported tax, Where Should You File Form 945-X?

you must file Form 945-X by the due date of the return for the

return period in which you discovered the error. When you Send your completed Form 945-X to the Internal Revenue

discover that you underreported tax on a previously filed Form Service Center shown below.

945, file Form 945-X no later than January 31 of the following

IF you are in . . . . . . . THEN use this address . . .

year. Pay the amount you owe when you file. Filing and paying

on time will generally ensure your correction is interest free and Special filing addresses for

not subject to failure-to-pay or failure-to-deposit penalties. See exempt organizations; federal,

Department of the Treasury

What About Penalties and Interest? on page 3. state, and local governmental

Internal Revenue Service

Example — You owe tax: On February 11, 2009, you entities; and Indian tribal

Ogden, UT 84201-0042

governmental entities; regardless

discover that you underreported $10,000 of federal income tax of location

actually withheld on your 2008 Form 945 due to a mathematical

error. File Form 945-X and pay the amount you owe by January Connecticut, Delaware, District of

31, 2010 because you discovered the error in 2009 and Columbia, Georgia, Illinois,

January 31, 2010 is the due date for that year. If you file Form Indiana, Kentucky, Maine,

945-X before January 31, 2010, pay the amount you owe when Maryland, Massachusetts,

Department of the Treasury

you file. Michigan, New Hampshire, New

Internal Revenue Service

Jersey, New York, North Carolina,

Cincinnati, OH 45999-0042

Overreported tax — credit. If you overreported tax and Ohio, Pennsylvania, Rhode

choose to apply the credit to Form 945, file Form 945-X soon Island, South Carolina,

after you discovered the error but more than 90 days before the Tennessee, Vermont, Virginia,

period of limitations on credit or refund for correcting the Form West Virginia, Wisconsin

945 expires. See Is There a Deadline for Filing Form 945-X? Alabama, Alaska, Arizona,

below. Arkansas, California, Colorado,

Example — You want your credit applied to Form 945: Florida, Hawaii, Idaho, Iowa,

On May 1, 2009, you discover that you overreported $9,000 in Kansas, Louisiana, Minnesota, Department of the Treasury

backup withholding tax on your 2008 Form 945 due to a Mississippi, Missouri, Montana, Internal Revenue Service

Nebraska, Nevada, New Mexico, Ogden, UT 84201-0042

transposition error. You file Form 945-X on June 1, 2009. The North Dakota, Oklahoma, Oregon,

IRS treats your credit as a tax deposit made on January 1, South Dakota, Texas, Utah,

2009. When you file your 2009 Form 945, include the amount Washington, Wyoming

from line 5 of Form 945-X on line 4 (“Total deposits”) of your

2009 Form 945. No legal residence or principal

Internal Revenue Service

P.O. Box 409101

place of business in any state

Overreported tax — claim. If you overreported tax, you may Ogden, UT 84409

choose to file a claim for refund or abatement on Form 945-X

any time before the period of limitations on credit or refund

expires. (If you need to correct any underreported amounts, How Should You Complete Form 945-X?

you must file another Form 945-X reporting only corrections to

the underreported amounts.) See Is There a Deadline for Filing

Form 945-X? below. Use One Form 945-X for Each Year You Are

Correcting

If you discovered an error on or before December 31, Use a separate Form 945-X for each Form 945 that you are

TIP 2008 but did not report it as a line adjustment on Form correcting. For example, if you found errors on your Forms 945

945 for any year ended before 2009 and did not file a for 2007 and 2008, file one Form 945-X to correct the 2007

claim (Form 843), you may use Form 945-X to correct the error. Form 945. File a second Form 945-X to correct the 2008 Form

File Form 945-X for the year in which you made the error. 945.

Is There a Deadline for Filing Form EIN, Name, and Address

945-X? Enter your EIN, name, and address in the spaces provided.

Also enter your name and EIN on the top of page 2 and on any

Generally, you may correct overreported taxes on a previously attachments. If your address has changed since you filed your

filed Form 945 if you file Form 945-X within 3 years of the date Form 945, enter the corrected information and the IRS will

Form 945 was filed or 2 years from the date you paid the tax update your address of record.

reported on Form 945, whichever is later. You may correct Return You Are Correcting

underreported taxes on a previously filed Form 945 if you file In the box at the top of page 1 of Form 945-X, enter the

Form 945-X within 3 years of the date the Form 945 was filed. calendar year of the Form 945 you are correcting. Enter the

We call each of these time frames a “period of limitations.” For calendar year on page 2 and on any attachments.

purposes of the period of limitations, Form 945 is considered

filed on April 15 of the succeeding calendar year if filed before Enter the Date You Discovered Errors

that date. You must enter the date you discovered errors. If you are

Example: You filed your 2007 Form 945 on January 27, reporting several errors you discovered at different times, enter

2008 and payments were timely made. (The IRS treats the the earliest date you discovered them here. On line 7, report

return as if it were filed on April 15, 2008.) On January 20, any subsequent dates and related errors.

2011, you discover that you overreported federal income tax

withheld on that form by $10,000 due to a mathematical error. Must You Make an Entry on Each Line?

To correct the error, you must file Form 945-X by April 15, You must provide all of the information requested at the top of

2011, which is the end of the period of limitations, and use the page 1 of Form 945-X. You must check one box (but not both)

claim process. in Part 1. In Part 2, if any line does not apply, leave it blank.

Complete Parts 3 and 4 as instructed.

If you file Form 945-X to correct overreported amounts

! in the last 90 days of a period of limitations (after How Should You Report Negative Amounts?

CAUTION January 15, 2011 in the example above), you must use Form 945-X uses negative numbers to show reductions in tax

the claim process. You cannot use the adjustment process. If (credits) and positive numbers to show additional tax (amounts

you are also correcting underreported amounts, you must use you owe).



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When reporting a negative amount in column 3, use a minus

sign instead of parentheses. For example, enter “-10.59”

instead of “(10.59).” However, if you are completing the return

Specific Instructions:

on your computer and your software only allows you to use

parentheses to report negative amounts, you may use them. Part 1: Select ONLY One Process

How Should You Make Entries on Form 945-X? Because Form 945-X may be used to file either an adjusted

You can help the IRS process your Form 945-X timely and return of withheld federal income tax or a claim for refund or

accurately if you follow these guidelines. abatement, you must check one box in either line 1 or line 2.

• Type or print your entries. Do not check both boxes.

• Use Courier font (if possible) for all typed or 1. Adjusted Return of Withheld Federal Income

computer-generated entries. Tax

• Omit dollar signs. You may use commas and decimal points,

if desired. Enter dollar amounts to the left of any preprinted Check the box on line 1 if you are correcting underreported

decimal point and cents to the right of it amounts or overreported amounts and you would like to use the

• Always show an amount for cents. Do not round entries to adjustment process to correct the errors.

whole dollars. If you are correcting both underreported amounts and

• Complete both pages and sign Form 945-X on page 2. overreported amounts on this form, you must check this box. If

• Staple multiple sheets in the upper-left corner. you check this box, any negative amount shown on line 5 will

be applied as a credit (tax deposit) to your Form 945 for the

What About Penalties and Interest? year in which you are filing this form. See Example — You want

Generally, your correction of an underreported amount will not your overreported tax applied as a credit to Form 945 above.

be subject to a failure-to-pay penalty, failure-to-deposit penalty, If you owe tax. Pay the amount shown on line 5 when you file

or interest if you: Form 945-X. Generally, you will not be charged interest if you

• file on time (by the due date of Form 945 for the year in which file on time, pay on time, enter the date you discovered the

you discover the error), error, and explain the correction on line 7.

• pay the amount shown on line 5 when you file Form 945-X, If you have a credit. You overreported withheld federal

• enter the date you discovered the error, and income tax (you have a negative amount on line 5) and want

• explain in detail the grounds and facts relied on to support the IRS to apply the credit to Form 945 for the year during

the correction. which you filed Form 945-X. The IRS will apply your credit on

No correction will be eligible for interest-free treatment if (a) the first day of that year. However, the credit you show on line 5

the amounts underreported relate to an issue that was raised in of Form 945-X may not be fully available on your Form 945 if

an examination of a prior period, (b) you knowingly the IRS corrects it during processing or you owe other taxes,

underreported your employment tax liability, or (c) you received penalties, or interest. The IRS will notify you if your claimed

a notice and demand for payment after assessment. credit changes or if the amount available as a credit on Form

945 was reduced because of unpaid taxes, penalties, or

Overview of the New Process interest.

Do not check the box on line 1 if you are correcting

The new process for adjusting Form 945 or filing a claim for

refund is outlined below. ! overreported amounts and the period of limitations on

CAUTION credit or refund for Form 945 will expire within 90 days



If you underreported the tax. If you underreported the tax of the date you file Form 945-X. Instead, check the box on line

actually withheld on a previously filed Form 945, check the box 2. See Is There a Deadline for Filing Form 945-X? on page 2.

on line 1 and pay any additional amount you owe when you file

Form 945-X. For details on how to make a payment, see the 2. Claim

instructions for line 5 on page 4. Check the box on line 2 to use the claim process if you are

Example — You underreported withheld income taxes: correcting overreported amounts only and you are claiming a

On June 20, 2009, you discover an error that results in refund or abatement for the negative amount (credit) shown on

additional tax on your 2008 Form 945. File Form 945-X by line 5. Do not check this box if you are correcting ANY

January 31, 2010 and pay the amount you owe when you file. underreported amounts on this form.

See When Should You File Form 945-X? on page 1. Do not You must check the box on line 2 if you have a credit and

attach Form 945-X to your 2009 Form 945. the period of limitations on credit or refund for Form 945 will

expire within 90 days of the date you file Form 945-X. See Is

If you overreported the tax. If you overreported the tax There a Deadline for Filing Form 945-X? on page 2.

actually withheld on a previously filed Form 945, you may

choose to: The IRS usually processes claims shortly after they are filed.

• use the adjustment process. Check the box on line 1 to apply IRS will notify you if your claim is denied, accepted as filed, or

any credit (negative amount) from line 5 to Form 945 for the selected to be examined. Get Publication 556, Examination of

year during which you file Form 945-X, or Returns, Appeal Rights, and Claims for Refund, for more

• use the claim process. Check the box on line 2 to file a claim information.

on Form 945-X requesting a refund or abatement of the amount Unless the IRS corrects Form 945-X during processing or

shown on line 5. you owe other taxes, penalties, or interest, IRS will refund the

amount shown on line 5, plus any interest that applies.

To ensure that the IRS has enough time to process a

TIP credit for an overreporting adjustment in the year Part 2: Enter the Corrections for This

during which you file Form 945-X, you are encouraged

to file Form 945-X correcting the overreported amount in the Year

first eleven months of a year. For example, if you discover an

overreported amount in December, you may want to file Form

945-X during the first eleven months of the next year. This What Amounts Should You Report in Part 2?

should ensure that the IRS will have enough time to process the In columns 1 and 2 of lines 3 and 4, show amounts for all of

Form 945-X so that the credit will be posted before you file your payees, not just for those payees whose amounts you are

Form 945, thus avoiding an erroneous balance due notice from correcting.

the IRS. See the example below. If a correction that you report in column 3 includes both

Example — You want your overreported tax applied as a underreported and overreported amounts (see the instructions

credit to Form 945: On December 22, 2009, you discover you for line 6), give us details for each error on line 7.

overreported your tax on your 2008 Form 945 and want to You may correct federal income tax withholding errors for

choose the adjustment process. To allow the IRS enough time prior years if the amounts shown on Form 945 do not agree

to process the credit, you file Form 945-X on January 6, 2010. with the amounts you actually withheld, that is, an



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administrative error. See section 13 of Pub. 15 (Circular E) for Read the instructions for line 3 for more information on

more information about administrative errors. TIP completing line 4. For correction purposes, there is no

distinction between federal income tax withheld from

If you previously adjusted or amended Form 945 using pensions, annuities, IRAs, gambling winnings, etc. and backup

! Form 941c, Form 945-X, Form 843, an “amended” Form

CAUTION 945, by filing a “supplemental” Form 945, or because of

withholding.

an IRS examination change, show amounts in column 2 that 5. Total

include those previously reported corrections. Combine the amounts from lines 3 and 4 of column 4. Enter the

3. Federal Income Tax Withheld result on line 5.

If you are correcting the federal income tax withheld you Your credit. If the amount entered on line 5 is less than zero,

reported on line 1 of Form 945, enter the total corrected amount for example, “-115.00,” you have a credit because you

for ALL payees in column 1. In column 2, enter the amount you overreported your withheld federal income tax.

originally reported or as previously corrected. In column 3, enter • If you checked the box on line 1, include this amount on line

the difference between columns 1 and 2. 4 (“Total deposits”) of Form 945 for the year during which you

file Form 945-X. Do not make changes to your Monthly

line 3 (column 1) Summary of Federal Tax Liability on Form 945 or on Form

-line 3 (column 2) 945-A. The amounts reported on the record should reflect your

line 3 (column 3) If the amount in column 2 is larger than the actual tax liability for the period.

amount in column 1, use a minus sign in • If you checked the box on line 2, you are filing a claim for

column 3. refund or abatement of the amount shown.

Example — Federal income tax withheld increased: You If your credit is less than $1, we will send a refund or apply it

reported $9,000 as federal income tax withheld on line 1 of your only if you ask us in writing to do so.

2008 Form 945. In July of 2009, you discovered that you had Amount you owe. You must pay the amount you owe when

overlooked $1,000 in federal income tax actually withheld from you file Form 945-X. You may not use any credit that you show

one of your payees. To correct the error, figure the difference on another Form 945-X to pay for the amount you owe, even if

on Form 945-X as shown. you filed for the amount you owe and the credit at the same

Column 1 (corrected amount) 10,000.00

time. You may pay the amount you owe on line 5 electronically

Column 2 (from line 1 of Form 945) - 9,000.00 using the Electronic Federal Tax Payment System (EFTPS), by

Column 3 (difference) 1,000.00 credit card, or by check or money order.

Example — Federal income tax withheld decreased:

• The preferred method of payment is EFTPS. For information,

visit www.eftps.gov or call EFTPS Customer Service at

You reported $9,600 as federal income tax withheld on line 1 of 1-800-555-4477 toll free, or get Pub. 966, The Secure Way to

your 2007 Form 945. In December of 2009, you discovered that Pay Your Federal Taxes.

you actually withheld $6,900 but reported the higher amount • To pay by credit card, visit the IRS website at www.irs.gov

due to a typographical (administrative) error. To correct the and click on the electronic IRS link.

error, figure the difference on Form 945-X as shown. • If you pay by check or money order, make it payable to

Column 1 (corrected amount) 6,900.00

“United States Treasury.” On your check or money order, be

Column 2 (from line 1 of Form 945) - 9,600.00 sure to write your EIN, “Form 945-X,” and the year corrected.

Column 3 (difference) -2,700.00 Do not use a federal tax deposit coupon (Form 8109 or

Example — Failure to withhold income tax when

required: You were required to withhold $400 of federal

!

CAUTION

Form 8109-B) to make your payment with Form 945 – X.

income tax from a new payee in December of 2008 but withheld

nothing. You discovered the error on March 15, 2009. You You do not have to pay if the amount you owe is less than

cannot file Form 945-X to correct your 2008 Form 945 because $1.

the error involves a previous year and the amount previously Previously assessed FTD penalty. If line 5 reflects

reported for the new payee (zero) represents the actual amount overreported tax and the IRS previously assessed a

withheld from the new payee during 2008. failure-to-deposit (FTD) penalty, you may be able to reduce the

Example — Administrative error: You had three payees. penalty. For more information, see the instructions for Form

In 2008, you withheld $1,000 of federal income tax from payee 945-A.

A, $2,000 from payee B, and $6,000 from payee C. The total

amount of federal income tax you withheld was $9,000. You Part 3: Explain Your Corrections for This

mistakenly reported $6,000 on line 1 of your 2008 Form 945. Year

You discovered the error on March 16, 2009. This is an

example of an administrative error that may be corrected in a

later calendar year because the amount actually withheld from 6. Correcting Both Underreported and

payees differs from the amount reported on Form 945. Use Overreported Amounts

Form 945-X to correct the error. Enter $9,000 in column 1 of Check the box on line 6 if any corrections you entered on line 3

line 3 and $6,000 in column 2 of line 3. Subtract the amount in or line 4 in column 3 reflect both underreported and

column 2 from the amount in column 1. overreported amounts.

Column 1 (corrected amount) 9,000.00 Example: If you had an increase to withheld income tax of

Column 2 (from line 1 of Form 945) - 6,000.00 $15,000 for payee A and a decrease to withheld income tax of

Column 3 (difference) 3,000.00 $5,000 for payee B, you would enter $10,000 on line 3, column

3. That $10,000 represents the net change from corrections.

Be sure to explain the reasons for this correction on line 7. On line 7, you must explain the reason for both the $15,000

4. Backup Withholding increase and the $5,000 decrease.

If you are correcting the backup withholding of federal income 7. Explain Your Corrections

tax you reported on line 2 of Form 945, enter the total corrected Treasury regulations require you to explain in detail the grounds

amount in column 1. In column 2, enter the amount you and facts relied upon to support each correction. On line 7,

originally reported or as previously corrected. In column 3, enter describe in detail each correction you entered in column 3 on

the difference between columns 1 and 2. lines 3 and 4. If you need more space, attach additional sheets,

but be sure to write your name, EIN, and calendar year on the

line 4 (column 1)

-line 4 (column 2)

top of each sheet.

line 4 (column 3) If the amount in column 2 is larger than the You must describe the events that caused the underreported

amount in column 1, use a minus sign in or overreported withheld income tax or backup withholding. An

column 3. explanation such as “withheld income tax was overstated” is



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insufficient and may delay processing your Form 945-X reporting agent offered legal advice, for example, advising the

because the IRS may need to ask for a more complete client whether federal income tax withholding is required on

explanation. certain payments.

The following is the information we need in your explanation

for each error you are correcting.

• Form 945-X line number(s) affected How Can You Order Forms and

• Date you discovered the error Publications from the IRS?

• Difference (amount of the error)

• Cause of the error

You may report the information in paragraph form. The Call the IRS at 1-800-829-3676

following paragraph is an example.

“The $1,000 difference shown in column 3 of line 3 was

discovered on May 15, 2009 during an internal audit. Due to a Visit the IRS website at www.irs.gov.

typographical error, we reported $11,000 as withheld income

tax on Form 945 instead of the $10,000 actually withheld from

payees. This correction removes the $1,000 that was

overreported.”

Additional Information

Part 4: Sign Here You may find the following products helpful when using Form

You must fill out both pages of Form 945-X and sign it on page 945-X.

2. If you do not sign, processing of Form 945-X will be delayed. • Form W-4P, Withholding Certificate for Pension or Annuity

Payments

Who must sign the Form 945-X? Form 945-X must be • Form W-4V, Voluntary Withholding Request

signed by one of the following: • Form W-9, Request for Taxpayer Identification Number and

• Sole proprietorship — The individual who owns the Certification

business. • Instructions for Forms W-2G and 5754

• Corporation (including an LLC treated as a • Instructions for Form 843

corporation) — The president, vice president, or other principal • Instructions for Form 945

officer duly authorized to act. • Form 945-A, Annual Record of Federal Tax Liability

• Partnership (including an LLC treated as a partnership) • Pub. 15 (Circular E), Employer’s Tax Guide

or unincorporated organization — A responsible and duly • Pub. 575, Pension and Annuity Income

authorized member or officer having knowledge of its affairs. • Pub. 966, The Secure Way to Pay Your Federal Taxes

• Single member limited liability company (LLC) treated as • Pub. 1281, Backup Withholding for Missing or Incorrect

a disregarded entity for federal income tax purposes — The Name/TIN(s)

owner of the limited liability company (LLC) or principal officer

duly authorized to act. Paperwork Reduction Act Notice We ask for the information

• Trust or estate — The fiduciary. on Form 945-X to carry out the Internal Revenue laws of the

A duly authorized agent of the taxpayer may also sign Form United States. You are required to give us the information. We

945-X if a valid power of attorney has been filed. need it to ensure that you are complying with these laws and to

Alternative signature method. Corporate officers or duly allow us to figure and collect the right amount of tax.

authorized agents may sign Form 945-X by rubber stamp, You are not required to provide the information requested on

mechanical device, or computer software program. For details a form that is subject to the Paperwork Reduction Act unless

and required documentation, see Rev. Proc. 2005-39. You can the form displays a valid OMB control number. Books and

find Rev. Proc. 2005-39, 2005-28 I.R.B. 82, at records relating to a form or its instructions must be retained as

www.irs.gov/irb/2005-28_IRB/ar16.html. long as their contents may become material in the

administration of any Internal Revenue law. Generally, tax

Paid Preparer’s Use Only returns and return information are confidential, as required by

You must complete this section if you were paid to prepare section 6103.

Form 945-X and are not an employee of the filing entity. Sign in The time needed to complete and file Form 945-X will vary

the space provided. Give the taxpayer the return to file with the depending on individual circumstances. The estimated average

IRS and include a copy of the return for the taxpayer’s records. time is:

Paid preparers must sign Form 945-X with a manual signature.

If you are a paid preparer, write your SSN or your Preparer Recordkeeping . . . . . . . . . . . . . . . . . . . . . . . . . . 5 hr., 44 min.

Tax Identification Number (PTIN) in the space provided. Include Learning about the law or the form . . . . . . . . . . . . . 40 min.

your complete address. If you work for a firm, write the firm’s Preparing and sending the form to the IRS . . . . . . . . 1 hr., 59 min.

name and the EIN of the firm. You can apply for a PTIN using If you have comments concerning the accuracy of these time

Form W-7P, Application for Preparer Tax Identification Number. estimates or suggestions for making Form 945-X simpler, we

You cannot use your PTIN in place of the EIN of the tax would be happy to hear from you. You can write to the IRS at

preparation firm. the address shown in the Privacy Act and Paperwork Reduction

Generally, you are not required to complete this section if Act Notice in the Instructions for Form 945.

you are filing the return as a reporting agent and have a valid

Form 8655, Reporting Agent Authorization, on file with the IRS.

However, a reporting agent must complete this section if the









-5-

Form 945-X: Which process should you use?

Type of errors you are

correcting



Underreported Use the adjustment process to correct underreported amounts.

amounts ONLY • Check the box on line 1.

• Pay the amount you owe from line 5 when you file Form 945-X.

Overreported amounts The process you use If you are filing Form 945-X MORE Choose either process to correct the overreported

ONLY depends on when you THAN 90 days before the period of amounts.

file Form 945-X. limitations on credit or refund for

Form 945 expires . . . . . . . . . . . . .

Choose the adjustment process if you want the

amount shown on line 5 credited to your Form 945 for

the period in which you file Form 945-X. Check the

box on line 1.

OR

Choose the claim process if you want the amount

shown on line 5 refunded to you or abated. Check the

box on line 2.

If you are filing Form 945-X WITHIN You must use the claim process to correct the

90 DAYS of the expiration of the overreported amounts. Check the box on line 2.

period of limitations on credit or

refund for Form 945 . . . . . . . . . . .

BOTH underreported The process you use If you are filing Form 945-X MORE Choose either the adjustment process or both the

and overreported depends on when you THAN 90 days before the period of adjustment process and the claim process when you

amounts file Form 945-X. limitations on credit or refund for correct both underreported and overreported

Form 945 expires . . . . . . . . . . . . . amounts.



Choose the adjustment process if combining your

underreported and overreported amounts results in a

balance due or creates a credit that you want applied

to Form 945.

• File one Form 945-X, and

• Check the box on line 1 and follow the instructions

on line 5.

OR

Choose both the adjustment process and claim

process if you want the overreported amount

refunded to you or abated.



File two separate forms.

1. For the adjustment process, file one Form 945-X

to correct the underreported amounts. Check the box

on line 1. Pay the amount you owe from line 5 when

you file Form 945-X.

2. For the claim process, file a second Form 945-X

to correct the overreported amounts. Check the box

on line 2.

If you are filing Form 945-X WITHIN You must use both the adjustment process and claim

90 DAYS of the expiration of the process.

period of limitations on credit or

refund for Form 945 . . . . . . . . . . . File two separate forms:

1. For the adjustment process, file one Form 945-X

to correct the underreported amounts. Check the box

on line 1. Pay the amount you owe from line 5 when

you file Form 945-X.

2. For the claim process, file a second Form 945-X

to correct the overreported amounts. Check the box

on line 2.









-6-


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