IRS Form 945 is the annual return used to report federal income tax withheld from nonpayroll payments, including backup withholding and withholding from certain pensions, annuities, IRAs, gambling winnings, and other payments.
Form 945 is separate from Forms 941 and W-2 payroll reporting. A payer generally files one Form 945 for the calendar year, while the tax is deposited during the year under the payer’s deposit schedule.
Last reviewed: July 30, 2026. This article is for general educational purposes and does not replace advice from a qualified tax, legal, financial, or student-aid professional.
What Is IRS Form 945?
Nonpayroll withholding reported on Form 945 should reconcile with Forms 1099, W-2G, and certain other recipient statements. Withholding reported on Forms 1042-S or subject to Form 1042 generally follows separate rules.
Once a payer files Form 945, the IRS may expect it annually until a final return is filed or the payer otherwise shows no continuing filing requirement. A zero return may be needed depending on prior filing and account status.
Who Should Use IRS Form 945?
- A payer that withheld federal income tax from pensions, annuities, IRAs, military retirement, or gambling winnings.
- A business or organization that imposed backup withholding on reportable payments.
- An insurer reporting withholding from certain life-insurance payments.
- A payer reconciling nonpayroll deposits with Forms 1099 or W-2G.
- Not an employer reporting wage withholding and FICA taxes, which generally belong on Form 941 or another employment return.
How to Use or Complete IRS Form 945
- Reconcile all nonpayroll withholding records and recipient information returns for the calendar year.
- Separate ordinary federal income-tax withholding from backup withholding.
- Enter total withholding, prior-period adjustments permitted on the form, deposits, and balance or overpayment.
- Complete Form 945-A if required as a semiweekly depositor or because the $100,000 next-day rule applied.
- E-file or sign and file Form 945 by the annual deadline, and pay only a balance permitted with the return.
- Correct prior Form 945 errors using Form 945-X and correct affected recipient statements separately.
Payments Reported on Form 945
- Backup withholding from interest, dividends, rents, royalties, nonemployee compensation, and other reportable payments.
- Federal withholding from pensions, annuities, and IRA distributions.
- Withholding from certain gambling winnings.
- Withholding from certain voluntary arrangements and other nonpayroll payments assigned to Form 945.
- Generally not wage withholding, household-employment tax, agricultural wage withholding, or Form 1042 withholding.
Form 945 Due Date
Form 945 is generally due January 31 after the calendar year. If all deposits were made in full and on time, the return is generally due February 10. Weekend and legal-holiday rules apply.
Recipient Forms 1099 or W-2G have their own furnishing and filing deadlines. An extension for one filing does not automatically extend the other.
Deposit Schedules
Monthly or semiweekly status is determined under the lookback rules using Form 945 tax liability, separately from Form 941 employment-tax liability. A payer can have different schedules for the two forms.
Monthly depositors generally deposit by the 15th day of the following month. Semiweekly depositors follow payday-based Wednesday or Friday deadlines, and a $100,000 liability can trigger a next-day deposit.
Backup Withholding
Backup withholding can be required when a payee fails to furnish a correct TIN, the IRS notifies the payer of a mismatch, or another statutory condition applies. The payer reports the withheld amount on Form 945 and the applicable recipient statement.
Use the current backup-withholding rate and follow B-notice procedures. Do not stop withholding merely because the payee supplies an informal explanation.
Correcting Form 945
Use Form 945-X to correct an underreported or overreported amount. The adjustment and claim processes have different timing, certification, and reimbursement requirements.
A corrected Form 945 does not automatically correct a Form 1099 or W-2G. Submit corrected recipient information through the applicable information-return system.
Before You File or Submit
- Use the current official version. Tax forms, addresses, thresholds, and electronic filing procedures can change. Download the form or instructions from the issuing agency immediately before use.
- Match names and taxpayer identification numbers. Confirm that legal names, SSNs, ITINs, EINs, plan numbers, and tax periods agree with the related return and agency records.
- Gather supporting records first. Keep calculations, statements, notices, authorizations, appraisals, receipts, and other documents that support every entry.
- Check the deadline and delivery method. An extension to file does not necessarily extend the time to pay. Private carriers also may require a different street address than USPS.
- Sign where required. An unsigned paper form, missing consent, or incomplete electronic authentication can delay or invalidate a submission.
- Keep a complete copy. Retain the filed form, attachments, confirmation number, proof of mailing, fax confirmation, and payment record.
Common Mistakes to Avoid
- Combining Form 941 and Form 945 liabilities when determining the deposit schedule.
- Reporting nonemployee compensation but omitting required backup withholding.
- Waiting until January to deposit tax accumulated during the year.
- Failing to reconcile Form 945 with recipient information statements.
- Using Form 945 to report withholding belonging on Form 1042.
- Correcting the annual return but not the affected Form 1099 or W-2G.
What Happens After Submission?
Verify that total deposits and any balance payment post under Form 945 for the correct calendar year. Resolve deposit notices with EFT confirmations and liability records.
Preserve payee Forms W-9, withholding elections, B-notices, deposit records, information returns, and reconciliation workpapers.
Processing time is not the same as a legal deadline. Do not submit a duplicate merely because an acknowledgement or response has not arrived. First check the relevant online status tool, confirmation record, or official contact channel. If the agency requests more information, respond by the date and method stated in the notice.
Records to Keep
Keep a copy of the completed submission and all documents used to prepare it. Your file should also contain the tax-year or period involved, the date submitted, the delivery method, any confirmation or tracking number, and notes about later agency correspondence. Retention periods depend on the form and issue, so follow the specific instructions and keep records longer when they may remain material to an audit, refund claim, basis calculation, collection case, election, or amended return.
Frequently Asked Questions
Is Form 945 filed quarterly?
No. It is an annual return, although deposits are generally required during the year.
Is nonemployee compensation reported on Form 945?
The payment is generally reported to the recipient on Form 1099-NEC; only federal backup withholding from it is included on Form 945.
Can a payer be monthly for Form 945 and semiweekly for Form 941?
Yes. The deposit schedules are determined separately under their respective lookback rules.
What corrects a Form 945 error?
Use Form 945-X and separately correct any affected recipient information returns.
Official Resources
Bottom line: Separate nonpayroll withholding from payroll taxes, deposit it throughout the year under the correct schedule, reconcile recipient statements, and file one accurate annual Form 945.