Get 2009 Form 945

Essentially, any business that has withheld or was required to withhold federal income tax from a payment that was made outside of their payroll should file Form 945. Businesses are only required to file Form 945 if they have non-payroll tax liability during the tax year.

Sections 3402, 3405, and 3406 of the Internal Revenue Code require taxpayers to pay over to the IRS federal income tax withheld from certain nonpayroll payments and distributions, including backup withholding. Form 945 is used to report these withholdings.

What is Form 945? This form is used to report the withheld 20% federal income tax payment that apply to taxable 401k distributions including distributions from self-employed plans such as a solo 401k plan.

Form 945 is also used to report federal income tax withholding on other nonwage amounts, such as pension and IRS distributions, military retirement pay, gambling winnings, and certain government payments on which the payee has elected voluntary withholding.

Businesses are only required to file Form 945 if they have non-payroll tax liability during the tax year. If no non-payroll payments were made during the tax year, there is no need to file Form 945.

Form CT-945 is used to reconcile annual Connecticut income tax withholding from nonpayroll amounts only.

Forms 940, 941, 943, 944, and 945 are filed by a business using payroll and/or bookkeeping software and are used to reconcile and verify correct remittance of payroll taxes due by the employer as well as taxes that were withheld from employees' paychecks.

Form 945 is used to report income tax withholding on non payroll payments including backup withholding and withholding on pensions, annuities, IRA's military retirement and gambling winnings. Form 945-V, Payment Voucher, is used if you are making a payment with Form 945, Annual Return of Withheld Federal Income Tax.