Help for item 7c.

None - under 2,500 Select if line 4 is less than $2,500. Do not complete line 8 or Form 945-A.

Monthly If a monthly depositor complete line 8, entries A through M, and check here if line 4 is $2,500 or more.

Semiweekly If a semiweekly depositors, complete Form 945-A and check here if line 4 is $2,500 or more.

IRS Form Instructions

Depositing Withheld Taxes

Deposit all nonpayroll (Form 945) withheld federal income tax, including backup withholding, by using the Electronic Federal Tax Payment System (EFTPS) or by depositing at an authorized institution using Form 8109, Federal Tax Deposit Coupon. Some taxpayers are required to use EFTPS to deposit their taxes (see Electronic deposit requirement on page 3). Combine all Form 945 taxes for deposit purposes. Do not combine deposits for Forms 941, 943, or CT-1 with deposits for Form 945. If you deposit using Form 8109, be sure to darken the space for Form “945" on Form 8109. 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 (Circular E) for a detailed discussion of the deposit rules.

Determining your deposit schedule. There are two deposit schedules- monthly or semiweekly -for determining when you must 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 must use. For 2006, you are a monthly schedule depositor for Form 945 if the total tax reported on your 2004 Form 945 (line 4) was $50,000 or less. If the total tax reported for 2004 exceeded $50,000, you are a semiweekly schedule depositor.

CAUTION! If you are a monthly schedule depositor and accumulate a $100,000 liability or more on any day during a calendar month, your deposit schedule changes to semiweekly for the remainder of the year and for the following year. For more information, see the $100,000 Next-Day Deposit Rule in section 11 of Pub. 15 (Circular E).

PayerDepositList