Form 945, Annual Return of Withheld Federal Income Tax

Form 945, Annual Return of Withheld Federal Income Tax, is an IRS tax form used to report federal income tax withheld from nonpayroll payments. Key points include:

1. Used for reporting withheld taxes from:

   – Pensions

   – Annuities

   – IRAs

   – Gambling winnings

   – Backup withholding

2. Filed annually, due by January 31 of the following year

3. Reports total withholdings, deposits, and any balance due

4. Separate from Form 941 (used for employee wage withholding)

5. May require monthly or semi-weekly deposits, depending on amount withheld

6. Electronic filing required for certain filers

Businesses and organizations that withhold federal income tax from nonpayroll payments must file this form. It’s crucial for ensuring proper reporting and remittance of withheld taxes to the IRS. Accurate and timely filing helps avoid penalties and maintains compliance with federal tax regulations. Consider consulting a tax professional or using tax preparation software to ensure correct completion and submission of Form 945.