Employer's Quarterly Federal Tax Return

2025

Instructions for Form 945
Annual Return of Withheld Federal Income Tax
Section references are to the Internal Revenue Code
unless otherwise noted.

Future Developments
For the latest information about developments related to
Form 945 and its instructions, such as legislation enacted
after they were published, go to IRS.gov/Form945.

What’s New
Direct deposit of Form 945 refund now available.
Executive Order (EO) 14247, Modernizing Payments To
and From America’s Bank Account, issued on March 25,
2025, promotes operational efficiency by mandating the
transition to electronic payments for all federal
disbursements. Accordingly, the IRS will now issue Form
945 tax refunds by direct deposit. Direct deposit is a fast,
simple, safe, and secure way to have your refund
deposited automatically to your checking or savings
account. Instead of a direct deposit refund, you can still
choose to have your Form 945 overpayment applied to
your next return by checking the appropriate box on
line 6b. For more information, see the instructions for
line 6b and Direct Deposit, later.
Make balance due payments electronically. (EO)
14247 also promotes operational efficiency by mandating
the transition to electronic payments for all payments
made to the federal government. Therefore, pay your
balance due on Form 945 electronically. There are several
easy, safe, and secure ways to pay your balance due
electronically. For more information, see the instructions
for line 5, later.
Form 945 return transcripts are now available electronically. You can now access your Form 945 return
transcript for tax years 2023 and later using your IRS
business tax account. For more information, go to
IRS.gov/BusinessTranscript. To access your IRS business
tax account, go to IRS.gov/BusinessAccount.

Reminders
Correcting a previously filed Form 945. If you
discover an error on a previously filed Form 945, or if you
otherwise need to amend a previously filed Form 945,
make the correction using Form 945-X, Adjusted Annual
Return of Withheld Federal Income Tax or Claim for
Refund. Form 945-X is filed separately from Form 945. For
more information, see the Instructions for Form 945-X or
go to IRS.gov/CorrectingEmploymentTaxes.
Electronic filing of Form 945-X. You can now file Form
945-X electronically using Modernized e-File (MeF). For
more information on electronic filing, go to IRS.gov/
EmploymentEfile.

Sep 22, 2025

Federal tax deposits must be made by electronic
funds transfer (EFT). You must use EFT to make all
federal tax deposits. An EFT can be made using the
Electronic Federal Tax Payment System (EFTPS), IRS
Direct Pay, or your IRS business tax account. If you don’t
want to use one of these methods, you can arrange for
your tax professional, financial institution, payroll service,
or other trusted third party to make electronic deposits on
your behalf. Also, you may arrange for your financial
institution to initiate a same-day wire payment on your
behalf. EFTPS is a free service provided by the
Department of the Treasury. Payments made using IRS
Direct Pay or through your IRS business tax account are
also free. Services provided by your tax professional,
financial institution, payroll service, or other trusted third
party may have a fee.
For more information on making federal tax deposits,
see section 11 of Pub. 15. To get more information about
EFTPS or to enroll in EFTPS, go to EFTPS.gov or call
800-555-4477. To contact EFTPS using
Telecommunications Relay Services (TRS) for people who
are deaf, hard of hearing, or have a speech disability, dial
711 and then provide the TRS assistant the 800-555-4477
number or 800-733-4829. Additional information about
EFTPS is also available in Pub. 966. For more information
about IRS Direct Pay, go to IRS.gov/DirectPay. For more
information about making a payment through your IRS
business tax account, go to IRS.gov/BusinessAccount.
Caution: EFTPS accepts same day payments of $1
million or less if the payment is submitted before 3:00 p.m.
Eastern time on a business day. If your payment is more
than $1 million, you must submit the deposit by 8:00 p.m.
Eastern time the day before the date the deposit is due. If
you use a third party to make a deposit on your behalf,
they may have different cutoff times.
Same-day wire payment option. If you fail to submit a
timely deposit transaction on EFTPS, you can still make
your deposit on time by using the Federal Tax Collection
Service (FTCS) to make a same-day wire payment. To use
the same-day wire payment method, you will need to
make arrangements with your financial institution ahead of
time. Check with your financial institution regarding
availability, deadlines, and costs. Your financial institution
may charge you a fee for payments made this way. To
learn more about the information you will need to give your
financial institution to make a same-day wire payment, go
to IRS.gov/SameDayWire.
Timeliness of federal tax deposits. If a deposit is
required to be made on a day that isn’t a business day, the
deposit is considered timely if it is made by the close of
the next business day. A business day is any day other
than a Saturday, Sunday, or legal holiday. The term “legal
holiday” for deposit purposes includes only those legal

Instructions for Form 945 (2025) Catalog Number 20534D
Department of the Treasury Internal Revenue Service www.irs.gov

holidays in the District of Columbia. Legal holidays in the
District of Columbia are provided in section 11 of Pub. 15.
Electronic filing and payment. Businesses can enjoy
the benefits of filing tax returns and paying their federal
taxes electronically. Whether you rely on a tax
professional or handle your own taxes, the IRS offers you
convenient and secure programs to make filing and paying
easier. Spend less time worrying about taxes and more
time running your business. Use e-file and electronic
payment options to your benefit.
• For e-file, go to IRS.gov/EmploymentEfile for additional
information. A fee may be charged to file electronically.
• For electronic payment options, see the instructions for
line 5, later, and go to IRS.gov/Pay.
Caution: If you’re filing your tax return or paying your
federal taxes electronically, a valid employer identification
number (EIN) is required at the time the return is filed or
the payment is made. If a valid EIN isn’t provided, the
return or payment won’t be processed. This may result in
penalties. See Employer Identification Number (EIN),
later, for more information about applying for an EIN.
Electronic funds withdrawal (EFW). If you file Form
945 electronically, you can e-file and use EFW to pay the
balance due in a single step using tax preparation
software or through a tax professional. However, don’t use
EFW to make federal tax deposits. For more information
on paying your taxes using EFW, go to IRS.gov/EFW.
Credit or debit card payments. You can pay the
balance due shown on Form 945 by credit or debit card.
Your payment will be processed by a payment processor
who will charge a processing fee. Don’t use a credit or
debit card to make federal tax deposits. For more
information on paying your taxes with a credit or debit
card, go to IRS.gov/PayByCard.
Online payment agreement. You may be eligible to
apply for an installment agreement online if you can’t pay
the full amount of tax you owe when you file your return.
For more information, see What if you can’t pay in full,
later.
Form 1099-NEC, Nonemployee Compensation. Use
Form 1099-NEC to report nonemployee compensation
paid in 2025 and any backup withholding on the
compensation.
Paid preparers. If you use a paid preparer to complete
Form 945, the paid preparer must complete and sign the
paid preparer’s section of the form.
Outsourcing your tax duties. Generally, you’re
responsible to ensure that tax returns are filed and
deposits and payments are made, even if you contract
with a third party to perform these acts. You remain
responsible if the third party fails to perform any required
action. Before you choose to outsource any of your tax
duties (that is, withholding, reporting, and paying over
federal income tax) to a third-party payer, such as a
payroll service provider or reporting agent, go to IRS.gov/
OutsourcingPayrollDuties for helpful information on this
topic. For more information on the different types of
third-party payer arrangements, see section 16 of Pub. 15.
How to get forms and publications. You can view,
download, or print most of the forms and publications you
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may need at IRS.gov/Forms. Otherwise, you can go to
IRS.gov/OrderForms to place an order and have them
mailed to you. The IRS will process your order for forms
and publications as soon as possible. Don’t resubmit
requests you’ve already sent us. You can get forms and
publications faster online.
Where can you get telephone help? For answers to
your questions about completing Form 945 or tax deposit
rules, call the IRS at 800-829-4933 or 800-829-4059
(TDD/TTY for persons who are deaf, hard of hearing, or
have a speech disability), Monday–Friday from 7:00 a.m.
to 7:00 p.m. local time (Alaska and Hawaii follow Pacific
time).
Photographs of missing children. The IRS is a proud
partner with the National Center for Missing & Exploited
Children® (NCMEC). Photographs of missing children
selected by the Center may appear in instructions on
pages that would otherwise be blank. You can help bring
these children home by looking at the photographs and
calling 1-800-THE-LOST (1-800-843-5678) if you
recognize a child.

General Instructions
Purpose of Form 945

These instructions give you some background information
about Form 945. They tell you who must file Form 945,
how to complete it line by line, and when and where to file
it.
Use Form 945 to report federal income tax withheld (or
required to be withheld) from nonpayroll payments.
Nonpayroll payments include:

• Pensions (including distributions from tax-favored
retirement plans, for example, section 401(k), section
403(b), and governmental section 457(b) plans),
annuities, and IRA distributions;
• Military retirement;
• Gambling winnings;
• Indian gaming profits;
• Certain government payments on which the recipient
elected voluntary income tax withholding;
• Dividends and other distributions by an Alaska Native
Corporation (ANC) on which the recipient elected
voluntary income tax withholding; and
• Payments subject to backup withholding.
Report all federal income tax withholding from
nonpayroll payments or distributions annually on one
Form 945. Don’t file more than one Form 945 for any
calendar year.
All federal income tax withholding reported on
Forms 1099 (for example, Form 1099-R, Distributions
From Pensions, Annuities, Retirement or Profit-Sharing
Plans, IRAs, Insurance Contracts, etc.; Form 1099-MISC,
Miscellaneous Information; or Form 1099-NEC) or Form
W-2G, Certain Gambling Winnings, must be reported on
Form 945.
Don’t report federal income tax withholding from wages
on Form 945. All federal income tax withholding and
employment taxes reported on Form W-2, Wage and Tax
Statement, must be reported on Form 941, Employer’s
Instructions for Form 945 (2025)

QUARTERLY Federal Tax Return; Form 943, Employer’s
Annual Federal Tax Return for Agricultural Employees;
Form 944, Employer’s ANNUAL Federal Tax Return;
Schedule H (Form 1040), Household Employment Taxes;
or Form CT-1, Employer’s Annual Railroad Retirement Tax
Return, as appropriate.
Don’t report on Form 945 federal income tax withheld
on distributions to participants from nonqualified pension
plans (including nongovernmental section 457(b) plans)
and some other deferred compensation arrangements
that are treated as wages and are reported on Form W-2.
Report such withholding on Form 941 or 944. See
Distributions from nonqualified pension plans and
deferred compensation plans under Reminders in Pub. 15
for more information.

When To File

For 2025, file Form 945 by February 2, 2026. However, if
you made deposits on time in full payment of the taxes
due for the year, you may file the return by February 10,
2026.
If we receive Form 945 after the due date, we will treat
Form 945 as filed on time if the envelope containing Form
945 is properly addressed, contains sufficient postage,
and is postmarked by the U.S. Postal Service (USPS) on
or before the due date, or sent by an IRS-designated
private delivery service (PDS) on or before the due date.
However, if you don’t follow these guidelines, we will
consider Form 945 filed when it is actually received. For
more information about PDSs, see Where To File, later.

Compensation paid to H-2A visa holders. Generally,
report compensation of $600 or more paid to foreign
agricultural workers who entered the country on H-2A
visas on Form W-2 and Form 943. However, if an H-2A
visa worker didn’t provide the employer with a taxpayer
identification number, the employee is subject to backup
withholding. The employer must report the wages and
backup withholding on Form 1099-MISC. The employer
must also report the backup withholding on Form 945,
line 2. For more information on foreign agricultural workers
on H-2A visas, go to IRS.gov/H2A.

If any due date for filing falls on a Saturday, Sunday, or
legal holiday, you may file your return on the next business
day.

Who Must File

PDSs can’t deliver to P.O. boxes. You must use the
USPS to mail an item to a P.O. box address. Go to
IRS.gov/PDS for the current list of PDSs. For the IRS
mailing address to use if you’re using a PDS, go to
IRS.gov/PDSstreetAddresses. Select the mailing address
listed on the webpage that is in the same state as the
address to which you would mail returns filed without a
payment, as shown in the table that follows.

If you withhold or are required to withhold federal income
tax (including backup withholding) from nonpayroll
payments, you must file Form 945. See Purpose of Form
945, earlier. You don’t have to file Form 945 for those
years in which you don’t have a nonpayroll tax liability.
Don’t report on Form 945 withholding that is required to be
reported on Form 1042, Annual Withholding Tax Return
for U.S. Source Income of Foreign Persons.
If you file Form 945, you may also be required to file
Form 945-A, Annual Record of Federal Tax Liability. See
the line 7 instructions for details.

Where To File

You’re encouraged to file Form 945 electronically. Go to
IRS.gov/EmploymentEfile for more information on
electronic filing. If you file a paper return, where you file
depends on whether you include a payment with Form
945. Mail your return to the address listed for your location
in the table that follows.

Mailing Addresses for Form 945
If you’re in...

Without a payment...

With a payment...

Connecticut, Delaware, District of Columbia, Georgia, Illinois, Indiana,
Kentucky, Maine, Maryland, Massachusetts, Michigan, New Hampshire,
New Jersey, New York, North Carolina, Ohio, Pennsylvania, Rhode
Island, South Carolina, Tennessee, Vermont, Virginia, West Virginia,
Wisconsin

Department of the Treasury
Internal Revenue Service
Kansas City, MO 64999-0042

Internal Revenue Service
P.O. Box 932300
Louisville, KY 40293-2300

Alabama, Alaska, Arizona, Arkansas, California, Colorado, Florida,
Hawaii, Idaho, Iowa, Kansas, Louisiana, Minnesota, Mississippi,
Missouri, Montana, Nebraska, Nevada, New Mexico, North Dakota,
Oklahoma, Oregon, South Dakota, Texas, Utah, Washington, Wyoming

Department of the Treasury
Internal Revenue Service
Ogden, UT 84201-0042

Internal Revenue Service
P.O. Box 932300
Louisville, KY 40293-2300

No legal residence or principal place of business in any state

Department of the Treasury
Internal Revenue Service
P.O. Box 409101
Ogden, UT 84409

Internal Revenue Service
P.O. Box 932300
Louisville, KY 40293-2300

Special filing address for exempt organizations; governmental entities;
and Indian tribal governmental entities, regardless of location

Department of the Treasury
Internal Revenue Service
Ogden, UT 84201-0042

Internal Revenue Service
P.O. Box 932300
Louisville, KY 40293-2300

Instructions for Form 945 (2025)

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Employer Identification Number (EIN)

If you don’t have an EIN, you may apply for one online by
going to IRS.gov/EIN. You may also apply for an EIN by
faxing or mailing Form SS-4 to the IRS. If the principal
business was created or organized outside of the United
States or U.S. territories, you may also apply for an EIN by
calling 267-941-1099 (toll call). If you have applied for an
EIN but don’t have your EIN by the due date of Form 945,
file a paper return and write “Applied For” and the date you
applied in this entry space.

Caution: If you’re filing your tax return electronically, a
valid EIN is required at the time the return is filed. If a valid
EIN isn’t provided, the return won’t be accepted. This may
result in penalties.
Tip: Always be sure the EIN on the form you file exactly
matches the EIN the IRS assigned to your business. Don’t
use your social security number (SSN) or individual
taxpayer identification number (ITIN) on forms that ask for
an EIN. The name and EIN on Form 945 must match the
name and EIN on your information returns where federal
income tax withholding is reported (for example, backup
withholding reported on Form 1099-NEC). Filing a Form
945 with an incorrect EIN or using another business’s EIN
may result in penalties and delays in processing your
return.

If You Change Your Business Name,
Business Address, or Responsible
Party

Notify the IRS immediately if you change your business
name, business address, or responsible party.
• Write to the IRS office where you file your returns (using
the Without a payment address under Where To File,
earlier) to notify the IRS of any business name change.
See Pub. 1635 to see if you need to apply for a new EIN.
• Complete and mail Form 8822-B to notify the IRS of a
business address or responsible party change. Don’t mail
Form 8822-B with your Form 945. For a definition of
“responsible party,” see the Instructions for Form SS-4.

Penalties and Interest

There are penalties for filing Form 945 late and for paying
or depositing taxes late, unless filing and/or paying late
are due to reasonable cause and not due to willful neglect.
There are also penalties for failure to file information
returns (for example, Forms 1099-MISC, 1099-NEC,
1099-R, or W-2G) and for failure to furnish payee
statements to payees.
Penalties and interest are charged on taxes paid late
and returns filed late at a rate set by law. See sections 11
and 12 of Pub. 15 for details.
Use Form 843 to request abatement of assessed
penalties or interest. Don’t request abatement of
assessed penalties or interest on Form 945 or 945-X.
If you receive a notice about a penalty after you file this
return, reply to the notice with an explanation and we will
determine if you meet reasonable-cause criteria. Don’t
attach an explanation when you file your return.

4

Caution: If taxes that must be withheld (that is, trust fund
taxes) aren’t withheld or aren’t deposited or paid to the
U.S. Treasury, the trust fund recovery penalty may apply.
The penalty is 100% of the unpaid trust fund taxes. If
these unpaid taxes can’t be immediately collected from
the employer or business, the trust fund recovery penalty
may be imposed on all persons who are determined by
the IRS to be responsible for collecting, accounting for, or
paying over these taxes, and who acted willfully in not
doing so. For more information, see section 11 of Pub. 15.

Voluntary Income Tax Withholding

States must allow unemployment compensation recipients
to elect to have federal income tax withheld at a 10% rate.
Recipients paid under the Railroad Unemployment
Insurance Act may also elect withholding at a 10% rate.
Recipients of any of the following payments may
request federal income tax withholding at a rate of 7%,
10%, 12%, or 22%.
• Social security and Tier 1 railroad retirement benefits.
• Certain crop disaster payments.
• Commodity Credit Corporation loans.
• Dividends and other distributions by an ANC.
The payee may request voluntary withholding on Form
W-4V or you may develop your own substitute form. Any
voluntary withholding on these payments must be
reported on Form 945 (and on the required information
return—Form 1099-DIV, Dividends and Distributions;
Form 1099-G, Certain Government Payments; Form
SSA-1099; or Form RRB-1099) and is subject to the
deposit rules.

Additional Information About
Nonpayroll Payments

• Pub. 15-A includes information on federal income tax
withholding from pensions and annuities (section 8).
• Pub. 15-T includes information on federal income tax
withholding from Indian gaming profits (section 7).
• The Instructions for Forms 1099-R and 5498 provide
information about pensions, annuities, IRAs, and military
retirement.
• The Instructions for Forms W-2G and 5754 provide
information on withholding from gambling winnings.
• Part N in the General Instructions for Certain
Information Returns provides information on backup
withholding.
• For more information about dividends and other
distributions by an ANC, see Notice 2013-77, 2013-50
I.R.B. 632, available at IRS.gov/irb/
2013-50_IRB#NOT-2013-77.
• Go to IRS.gov/EmploymentTaxes for additional
information about employment taxes.

Depositing Withheld Taxes

Deposit all nonpayroll (Form 945) withheld federal income
tax, including backup withholding, by EFT. An EFT can be
made using EFTPS, IRS Direct Pay, or your IRS business
tax account. For more information, see Federal tax
deposits must be made by electronic funds transfer (EFT)
under Reminders, earlier. Combine all Form 945 taxes for
deposit purposes. Don’t combine deposits for Forms 941,
943, 944, or CT-1 with deposits for Form 945. Also, don’t
Instructions for Form 945 (2025)

combine Form 945 taxes with taxes for Forms 941, 943,
944, or CT-1 for purposes of determining any of the
deposit rules discussed next, such as whether the $2,500
threshold is applicable, whether you’re a monthly or
semiweekly schedule depositor, or whether the $100,000
next-day deposit rule applies.
Generally, the deposit rules that apply to Form 941 also
apply to Form 945. However, because Form 945 is an
annual return, the rules for determining your deposit
schedule (discussed below) are different from those for
Form 941. See section 11 of Pub. 15 for a detailed
discussion of the deposit rules.
Tip: If the total amount of tax for 2025 is less than $2,500,
you’re not required to make deposits during the year.

Determining Your Deposit Schedule

There are two deposit schedules—monthly and
semiweekly—for determining when you deposit withheld
federal income tax. These schedules tell you when a
deposit is due after a tax liability arises (that is, you make
a payment subject to federal income tax withholding,
including backup withholding). Before the beginning of
each calendar year, you must determine which of the two
deposit schedules you’re required to use.
For 2026, you’re a monthly schedule depositor for Form
945 if the total tax reported on your 2024 Form 945 (line 3)
was $50,000 or less. If the total tax reported for 2024 was
more than $50,000, you’re a semiweekly schedule
depositor.
Caution: If you’re a monthly schedule depositor and
accumulate a tax liability of $100,000 or more on any day
during a calendar month, your deposit schedule changes
on the next day to semiweekly for the remainder of the
year and for the following year. For more information, see
$100,000 Next-Day Deposit Rule in section 11 of Pub. 15.

Specific Instructions
Line A. Final Return

If you go out of business or end operations and you won’t
have to file Form 945 in the future, file a final return. Be
sure to check the box on line A and enter the date that
final nonpayroll payments were made. Also, attach a
statement to your return showing the name of the person
keeping the payment records and the address where
those records will be kept.
If you sell or transfer your business during the year, you
and the new owner must each file a Form 945 for the year
in which the transfer occurred. Report only the taxes you
withheld.
When two businesses merge, the continuing firm must
file a return for the year in which the change took place
and the other firm should file a final return.
Changing from one form of business to another, such
as from a sole proprietorship to a partnership or
corporation, is considered a transfer. If a transfer occurs,
you may need a new EIN. See Pub. 1635 and section 1 of
Pub. 15 for more information.
Attach a statement to your return with all the following
information.
Instructions for Form 945 (2025)

• The new owner’s name (or the new name of the
business).
• Whether the business is now a sole proprietorship,
partnership, or corporation.
• The kind of change that occurred (a sale or transfer).
• The date of the change.
• The name of the person keeping the payroll records and
the address where those records will be kept.
If no sale or transfer occurred, or you don’t know the
name of the person to whom the business was sold or
transferred, that fact should be included in the statement.

Completing Form 945

Enter dollars to the left of the preprinted decimal point and
cents to the right of it. Don’t round entries to whole dollars.
Always show an amount for cents, even if it is zero.

Line 1. Federal Income Tax Withheld

Enter the federal income tax that you withheld (or were
required to withhold) from pensions (including
distributions from tax-favored retirement plans, for
example, section 401(k), section 403(b), and
governmental section 457(b) plans), annuities, IRA
distributions, military retirement, Indian gaming profits,
and gambling winnings (regular gambling withholding
only; backup withholding on gambling winnings is
reported on line 2). Also, enter any voluntary amount that
you withheld on certain government payments, and on
dividends and other distributions by an ANC.
Caution: Federal income tax withholding reported on
Form W-2 must be reported on Form 941, Form 943, Form
944, or Schedule H (Form 1040), as appropriate.

Line 2. Backup Withholding

Enter any backup withholding that you withheld (or were
required to withhold), including backup withholding on
gambling winnings. See part N in the General Instructions
for Certain Information Returns for more information on
backup withholding.
Regulated investment companies (RICs) and real
estate investment trusts (REITs) must report any backup
withholding on Form 945 in the year that the dividends are
actually paid. This includes January payments of
dividends declared during October, November, and
December of the prior year. See the Instructions for Form
1099-DIV for special reporting requirements.

Line 3. Total Taxes

Add lines 1 and 2. If total taxes are $2,500 or more, the
amount reported on line 3 must equal the total liability for
the year reported on line 7m of the Monthly Summary of
Federal Tax Liability, or line M of Form 945-A.

Line 4. Total Deposits

Enter your total Form 945 deposits for the year, including
any overpayment that you applied from filing Form 945-X
in 2025, and any overpayment that you applied from your
2024 return.

Line 5. Balance Due

If line 3 is more than line 4, enter the difference on line 5.
Otherwise, see the instructions for line 6a, later. Never
make an entry on both lines 5 and 6a.
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You don’t have to pay if line 5 is under $1. Generally,
you should have a balance due only if your total taxes for
the year (line 3) are less than $2,500. If you made
payments under the accuracy of deposits rule, see section
11 of Pub. 15.
If you were required to make federal tax deposits, pay
the amount shown on line 5 by EFT. If you weren’t required
to make federal tax deposits or you’re a monthly schedule
depositor making a payment under the accuracy of
deposits rule (see section 11 of Pub. 15), pay the amount
shown on line 5 by EFT, credit card, debit card, check,
money order, or EFW. For more information on electronic
payment options, go to IRS.gov/Pay.
If you pay by EFT, credit card, or debit card, file your
return using the Without a payment address under Where
To File, earlier, and don’t file Form 945-V, Payment
Voucher.
If you pay by check or money order, make it payable to
“United States Treasury.” Enter your EIN, “Form 945,” and
the tax year on your check or money order. Complete
Form 945-V and enclose with Form 945.
If line 3 is $2,500 or more and you deposited all taxes
when due, the amount on line 5 should be zero.
Caution: If you didn’t make deposits as required and
instead pay the taxes with Form 945, you may be subject
to a penalty.
What if you can’t pay in full? If you can’t pay the full
amount of tax you owe, you can apply for an installment
agreement online. You can apply for an installment
agreement online if:
• You can’t pay the full amount shown on line 5,
• The total amount you owe is $25,000 or less, and
• You can pay the liability in full in 24 months.
To apply using the Online Payment Agreement
Application, go to IRS.gov/OPA.
Under an installment agreement, you can pay what you
owe in monthly installments. There are certain conditions
you must meet to enter into and maintain an installment
agreement, such as paying the liability within 24 months,
and making all required deposits and timely filing tax
returns during the length of the agreement.
If your installment agreement is accepted, you will be
charged a fee and you will be subject to penalties and
interest on the amount of tax not paid by the due date of
the return.

Line 6a. Overpayment

If line 4 is more than line 3, enter the difference on line 6a.
Never make an entry on both lines 5 and 6a.
Line 6b. Choose to have your overpayment applied to
your next return or refunded. If you deposited more
than the correct amount for the year, you can have the
overpayment refunded (complete lines 6c–6e for direct
deposit) or applied to your next return by checking the
appropriate box. Check only one box on line 6b. If you
don’t check either box or if you check both boxes,
generally we will apply the overpayment to your next
return. Regardless of any box you check or don’t check on
line 6b, we may apply your overpayment to any past due
tax account that is shown in our records under your EIN.
6

If line 6a is under $1, we will send a refund or apply it to
your next return only if you ask us in writing to do so.

Direct Deposit

The benefits of a direct deposit include a faster refund, the
added security of a paperless payment, and the savings of
tax dollars associated with the reduced processing costs.
To have your refund direct deposited, you must complete
lines 6c–6e.

Line 6c. Routing number. The routing number must be
nine digits. The first two digits must be 01 through 12 or 21
through 32. Verify that your financial institution will accept
a direct deposit.
Ask your financial institution for the correct routing
number to enter on line 6c if:
• The routing number on a deposit slip is different from
the routing number on your checks,
• Your deposit is to a savings account that doesn’t allow
you to write checks, or
• Your checks state they’re payable through a financial
institution different from the one at which you have your
checking account.
Line 6d. Type of account. Check the appropriate box for
the type of account. Don’t check more than one box. You
must check the correct box to ensure your deposit is
accepted. If you’re unsure which box to check for the
account you wish the deposit to be applied to, consult
your financial institution.
Line 6e. Account number. The account number can be
up to 17 characters (both numbers and letters). Include
hyphens but omit spaces and special symbols. Enter the
number from left to right and leave any unused boxes
blank.
If the direct deposit to your account is different from the
amount you expected, you’ll receive an explanation in the
mail about 2 weeks after your refund is deposited.

Reasons Your Direct Deposit Request Will Be
Rejected

If any of the following apply, your direct deposit request
will be rejected and a check will be sent instead.
• The name on your account doesn’t match the name on
the refund, and your financial institution won’t allow a
refund to be deposited unless the name on the refund
matches the name on the account.
• Your business is a corporation and the receiving
financial institution is a foreign bank or a foreign branch of
a U.S. bank.
• You haven’t given a valid account number.
• Any numbers or letters on lines 6c through 6e are
crossed out or whited out.
Caution: The IRS isn’t responsible for a lost refund if you
enter the wrong account information. Check with your
financial institution to get the correct routing and account
numbers and to make sure your direct deposit will be
accepted.

Instructions for Form 945 (2025)

Line 7. Monthly Summary of Federal
Tax Liability

Caution: This is a summary of your monthly tax liability,
not a summary of deposits made. If line 3 is less than
$2,500, don’t complete line 7 or Form 945-A.
Complete line 7 only if you were a monthly schedule
depositor for the entire year and line 3 is $2,500 or more.
See Determining Your Deposit Schedule, earlier.
Caution: The amount entered on line 7m must equal the
amount reported on line 3.
Report your liabilities on Form 945-A instead of on
line 7 if either of the following applies.
• You were a semiweekly schedule depositor
during 2025. Don’t complete entries a through m of line 7.
Instead, complete and file Form 945-A with Form 945.
• You were a monthly schedule depositor for 2025 and
during any month you accumulated nonpayroll taxes of
$100,000 or more. Because this converted you to a
semiweekly schedule depositor for the remainder of 2025
(and for 2026), you must report your liabilities on Form
945-A for the entire year. Don’t complete entries a through
m of line 7. For more information, see $100,000 Next-Day
Deposit Rule in section 11 of Pub. 15.

Third-Party Designee

If you want to allow an employee, a paid tax preparer, or
another person to discuss your Form 945 with the IRS,
check the “Yes” box in the Third-Party Designee section of
Form 945. Enter the name, phone number, and five-digit
personal identification number (PIN) of the specific person
to speak with—not the name of the firm that prepared your
tax return. The designee may choose any five numbers as
their PIN.
By checking “Yes,” you authorize the IRS to talk to the
person you named (your designee) about any questions
we may have while we process your return. You also
authorize your designee to do all of the following.
• Give us any information that is missing from your return.
• Call us for information about processing your return.
• Respond to certain IRS notices that you’ve shared with
your designee about math errors and return preparation.
The IRS won’t send notices to your designee.
You’re not authorizing your designee to bind you to
anything (including additional tax liability) or to otherwise
represent you before the IRS. If you want to expand your
designee’s authorization, see Pub. 947.
The authorization will automatically expire 1 year from
the due date (without regard to extensions) for filing your
Form 945. If you or your designee wants to terminate the
authorization, write to the IRS office for your location using
the Without a payment address under Where To File,
earlier.

Who Must Sign (Approved Roles)

The following persons are authorized to sign the return for
each type of business entity.
• Sole proprietorship—The individual who owns the
business.
• Corporation (including a limited liability company
(LLC) treated as a corporation)—The president, the
Instructions for Form 945 (2025)

vice president, or another principal officer duly authorized
to sign.
• Partnership (including an LLC treated as a
partnership) or unincorporated organization—A
responsible and duly authorized partner, member, or
officer having knowledge of its affairs.
• Single-member LLC treated as a disregarded entity
for federal income tax purposes—The owner of the
LLC or a principal officer duly authorized to sign.
• Trust or estate—The fiduciary.
Form 945 may also be signed by a duly authorized
agent of the taxpayer if a valid power of attorney has been
filed.
Alternative signature method. Corporate officers or
duly authorized agents may sign Form 945 by rubber
stamp, mechanical device, or computer software program.
For details and required documentation, see Rev. Proc.
2005-39, 2005-28 I.R.B. 82, available at
IRS.gov/irb/2005-28_IRB#RP-2005-39.

Paid Preparer Use Only

A paid preparer must sign Form 945 and provide the
information in the Paid Preparer Use Only section if the
preparer was paid to prepare Form 945 and isn’t an
employee of the filing entity. Paid preparers must sign
paper returns with a manual signature. The preparer must
give you a copy of the return in addition to the copy to be
filed with the IRS.

If you’re a paid preparer, enter your Preparer Tax
Identification Number (PTIN) in the space provided.
Include your complete address. If you work for a firm,
enter the firm’s name and the EIN of the firm. You can
apply for a PTIN online or by filing Form W-12. For more
information about applying for a PTIN online, go to
IRS.gov/PTIN. You can’t use your PTIN in place of the EIN
of the tax preparation firm.
Generally, don’t complete this section if you’re filing the
return as a reporting agent and have a valid Form 8655 on
file with the IRS. However, a reporting agent must
complete this section if the reporting agent offered legal
advice, for example, advising the client on determining
whether federal income tax withholding is required on
certain payments.
Privacy Act and Paperwork Reduction Act Notice. We
ask for the information on Form 945 to carry out the
Internal Revenue laws of the United States. We need it to
figure and collect the right amount of tax. 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. Section 6011 requires
you to provide the requested information if the tax is
applicable to you. Section 6109 requires you to provide
your identification number. If you fail to provide this
information in a timely manner, or provide false or
fraudulent information, you may be subject to penalties.
You’re not required to provide the information requested
on a form that is subject to the Paperwork Reduction Act
unless the form displays a valid OMB control number.
7

Books or records relating to a form or its instructions must
be retained as long as their contents may become
material in the administration of any Internal Revenue law.
Generally, tax returns and return information are
confidential, as required by section 6103. However,
section 6103 allows or requires the IRS to disclose or give
the information shown on your tax return to others
described in the Code. For example, we may disclose your
tax information to the Department of Justice for civil and
criminal litigation, and to cities, states, the District of
Columbia, and U.S. commonwealths and territories for use

8

in administering their tax laws. We may also disclose this
information to other countries under a tax treaty, to federal
and state agencies to enforce federal nontax criminal
laws, or to federal law enforcement and intelligence
agencies to combat terrorism.
The time needed to complete and file Form 945 will
vary depending on individual circumstances. The
estimated burden for filers of Form 945 is approved under
OMB control number 1545-0029 and is included in the
estimates shown in the Instructions for Form 941.

Instructions for Form 945 (2025)