Form 945-A - Dec 2024

Form 945-A: How to report annual federal tax liability

What is Form 945-A used for?

Form 945-A, Annual Record of Federal Tax Liability, is used to report federal tax liability by month and date for certain employers and payers. It shows when federal tax liability was incurred during the year rather than reporting when tax deposits were made.

Form 945-A is a supporting schedule and is not filed by itself. It is used with certain employment tax returns, including Forms 945, 944 and CT-1, and their corresponding correction forms, Forms 945-X, 944-X and CT-1-X. The information on Form 945-A allows the IRS to compare reported tax liability with the deposits made during the year and determine whether deposits were made on time.

Who needs to file Form 945-A?

Form 945-A is required for certain depositors based on their federal tax deposit schedule and the amount of tax liability incurred during the year.

Generally, Form 945-A is required for:

• Semiweekly schedule depositors who file Form 945, 944 or CT-1
• Monthly schedule depositors who accumulate $100,000 or more in tax liability on any day during the month
• Employers or payers who need to report liability information with Forms 945-X, 944-X or CT-1-X when Form 945-A is required

Monthly schedule depositors who do not reach the $100,000 threshold generally report their tax liability on the appropriate monthly summary section of the main return instead of completing Form 945-A.

Form 945 vs. Form 945-A

Form 945 and Form 945-A serve different purposes, even though their form numbers are similar. Form 945 is the Annual Return of Withheld Federal Income Tax. It reports the total federal income tax withheld from certain nonpayroll payments during the year. Form 945-A is an annual record of federal tax liability that provides a more detailed breakdown of when the liability occurred during the year. It supports Form 945 and certain other federal tax returns.

Key differences include:

• Purpose: Form 945 reports the annual total, while Form 945-A reports federal tax liability by date.
• Who files: Form 945 is required for applicable nonpayroll withholding, while Form 945-A is required only for certain depositors.
• Filing: Form 945-A is attached to the applicable return and is not filed separately.

The total liability reported on Form 945-A must generally agree with the corresponding tax liability reported on the return it supports.

How to complete Form 945-A

Form 945-A requires the federal tax liability to be reported for each applicable date during the year. The liability should be reported based on when it was incurred, not when the corresponding tax deposit was made.

Before completing the form, gather:

• Employer identification number and business name
• Calendar year covered by the form
• Records showing federal tax liability for each applicable date
• Monthly liability totals for the applicable columns
• The total annual liability reported on the form

The amounts reported on Form 945-A should be supported by payroll, payment and tax records. The totals should also be checked against the corresponding federal tax return before filing. Incorrect or incomplete liability information can affect how the IRS determines whether required tax deposits were made on time and may result in a failure-to-deposit penalty.

When is Form 945-A due?

Form 945-A is filed with the federal tax return it supports and generally follows that return's filing deadline. It is not submitted separately or on a different filing schedule.

For example, Form 945 for the 2025 tax year is due February 2, 2026, because the regular January 31 deadline falls on a Saturday. When Form 945-A is required with Form 945, it should be completed and submitted with that return. Because filing requirements and deadlines can vary depending on the return being corrected or supported, the current IRS instructions should be reviewed before filing.

Fill out Form 945-A with Lumin

Need to complete Form 945-A? Use Lumin's fillable Form 945-A template to enter the required liability information, review the totals and prepare the completed form for submission with the applicable return.