Form 945 Due Dates

What is Form 945?

Form 945 reports the total nonpayroll payments made by the business and the total tax held from the payment. It is the annual tax return form to be filed by the employer.

Important dates in filing form 945

Filing Form 945 on time is important for businesses to avoid penalties and comply with IRS regulations.

What are the details required?

Form 945 requires details:

• Business name, Trade name, EIN, address of the business
• Tax withheld from the nonpayroll payment
• Back up amount withheld

Nonpayroll payments include pensions (including distributions from tax-favored retirement plans), annuities, IRA distributions, military retirement, Indian gaming profits, and gambling winnings.

Filing Method:

• E-Filing: Form 945 can be easily filed using the electronic filing method. It is a Quick, easy, and reliable filing Method.
• Paper filing:The IRS allows businesses to file Form 945 using the paper filing method. Filer needs to complete the form and mail it to the addresses mentioned by the IRS based on the location.

Penalties for late deposit and late filing

1. Failure-to-File (FTF) Penalty

A penalty for not filing a tax return on time.

• How it works:
• The penalty is 5% of the unpaid tax for each month (or part of a month) the return is late.
• The maximum penalty is 25% of the unpaid tax.

2. Failure-to-Pay (FTP) Penalty

A penalty for not paying the tax owed on time.

• How it works:
• The penalty is 0.5% of the unpaid tax for each month (or part of a month) the payment is late.
• The maximum penalty is 25% of the unpaid tax.