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Use a Separate Form 945-X for Each Year You¡¯re Correcting

Use a separate Form 945-X for each Form 945 that you¡¯re correcting. For example, if you found errors on your Forms 945 for 2023 and 2024, file one Form 945-X to correct the 2023 Form 945, and a second Form 945-X to correct the 2024 Form 945.

Employer Identification Number (EIN), Name, and Address

Enter your EIN, name, and address in the spaces provided. Also enter your name and EIN on the top of page 2 and on any attachments. If your address has changed since you filed your Form 945, enter the corrected information and the IRS will update your address of record. Be sure to write your name, your EIN, ¡°Form 945-X,¡± and the calendar year you're correcting on the top of any attachments.

Return You¡¯re Correcting

Enter the calendar year of the Form 945 you're correcting in the box at the top of page 1. Enter the same calendar year on page 2 and on any attachments.

Enter the Date You Discovered Errors

You must enter the date you discovered errors. You discover an error when you have enough information to be able to correct the error. If you're reporting several errors you discovered at different times, enter the earliest date you discovered an error here. Report any subsequent dates and related errors on line 7.

Must You Make an Entry on Each Line?

You must provide all of the information requested at the top of Form 945-X, page 1. You must check one box (but not both) in Part 1. In Part 2, if any line doesn¡¯t apply, leave it blank. Complete Parts 3 and 4 as instructed.

How Should You Report Negative Amounts?

Form 945-X uses negative numbers to show reductions in tax (credits) and positive numbers to show additional tax (amounts you owe).

When reporting a negative amount in column 3, use a minus sign instead of parentheses. For example, enter ¡°-10.59¡± instead of ¡°(10.59).¡± However, if you¡¯re completing the return on your computer and your software only allows you to use parentheses to report negative amounts, you may use them.

How Should You Make Entries on Form 945-X?

You can help the IRS process Form 945-X timely and accurately if you follow these guidelines.

What About Penalties and Interest?

Generally, your correction of an underreported amount won¡¯t be subject to an FTP penalty, an FTD penalty, or interest if you:

No correction will be eligible for interest-free treatment if any of the following apply.

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.

If you underreported the tax.

If you underreported the tax actually withheld on a previously filed Form 945, check the box on line 1 and pay any additional amount you owe by the time you file Form 945-X. For details on how to make a payment, see the instructions for line 5, later.

If you overreported the tax.

If you overreported the tax actually withheld on a previously filed Form 945, choose one of the following options.

To ensure that the IRS has enough time to process a credit for an overreporting adjustment in the year during which you file Form 945-X, you¡¯re encouraged to file Form 945-X correcting the overreported amount in the first 11 months of a year. For example, if you discover an overreported amount in December, you may want to file Form 945-X during the first 11 months of the next year. However, there must be 90 days remaining on the period of limitations when you file Form 945-X. See the Caution under Is There a Deadline for Filing Form 945-X, earlier. This should ensure that the IRS will have enough time to process the Form 945-X so the credit will be posted before you file Form 945, thus avoiding an erroneous balance due notice from the IRS. See the example below.

1. Adjusted Return of Withheld Federal Income Tax

Check the box on line 1 if you¡¯re correcting underreported amounts or overreported amounts and you would like to use the adjustment process to correct the errors.

If you¡¯re correcting both underreported amounts and overreported amounts on this form, you must check this box. If you check this box, any negative amount shown on line 5 will be applied as a credit (tax deposit) to your Form 945 for the year in which you¡¯re filing this form. See Example¡ªYou want your overreported tax applied as a credit on Form 945 , earlier.

2. Claim

Check the box on line 2 to use the claim process if you¡¯re correcting overreported amounts only and you¡¯re claiming a refund or abatement for the negative amount (credit) shown on line 5. Don¡¯t check this box if you¡¯re correcting any underreported amounts on this form.

You must check the box on line 2 if you have a credit (a negative amount on line 5) and the period of limitations on credit or refund for Form 945 will expire within 90 days of the date you file Form 945-X. See Is There a Deadline for Filing Form 945-X , earlier.

The IRS usually processes claims shortly after they are filed. The IRS will notify you if your claim is denied, accepted as filed, or selected to be examined. See Pub. 556, Examination of Returns, Appeal Rights, and Claims for Refund, for more information.

Unless the IRS corrects Form 945-X during processing or you owe other taxes, penalties, or interest, the IRS will refund the amount shown on line 5, plus any interest that applies.

What Amounts Should You Report in Part 2?

On lines 3 and 4, columns 1 and 2, for each line you're correcting, show amounts for all of your payees, not just for those payees whose amounts you¡¯re correcting.

If a correction that you report in column 3 includes both underreported and overreported amounts (see the instructions for line 6, later), give us details for each error on line 7.

You may correct federal income tax withholding errors for prior years if the amounts shown on Form 945 don¡¯t agree with the amounts you actually withheld, that is, an administrative error. See section 13 of Pub. 15 for more information about administrative errors.

If you previously adjusted or amended Form 945 using Form 945-X or because of an IRS examination change, show amounts in column 2 that include those previously reported corrections.

3. Federal Income Tax Withheld

If you¡¯re correcting the federal income tax withheld you reported on Form 945, line 1, enter the total corrected amount in column 1. In column 2, enter the amount you originally reported or as previously corrected. In column 3, enter the difference between columns 1 and 2.

4. Backup Withholding

If you¡¯re correcting the backup withholding of federal income tax you reported on Form 945, line 2, enter the total corrected amount in column 1. In column 2, enter the amount you originally reported or as previously corrected. In column 3, enter the difference between columns 1 and 2.

Read the instructions for line 3 for more information on completing line 4. For correction purposes, there is no distinction between federal income tax withheld from pensions, annuities, IRAs, gambling winnings, etc., and backup withholding.

5. Total

Combine the amounts from column 3 on lines 3 and 4 and enter the result on line 5.

6. Corrections of Both Underreported and Overreported Amounts

Check the box on line 6 if any corrections you entered on lines 3 and 4, column 3, reflect both underreported and overreported amounts.

7. Explain Your Corrections

Treasury regulations require you to explain in detail the grounds and facts relied upon to support each correction. On line 7, describe in detail each correction you entered in column 3 on lines 3 and 4. If you need more space, attach additional sheets, but be sure to write your name, your EIN, ¡°Form 945-X,¡± and the calendar year you're correcting on the top of each sheet.

You must describe the events that caused the underreported or overreported withheld income tax or backup withholding. An explanation such as ¡°withheld income tax was overstated¡± is insufficient and may delay processing your Form 945-X because the IRS may need to ask for a more complete explanation.

Provide the following information in your explanation for each correction.

You may report the information in paragraph form. The following paragraph is an example.

¡°The $1,000 difference shown in column 3 of line 3 was discovered on May 13, 2025, during an internal audit. Due to a typographical error, we reported $11,000 as withheld income tax on Form 945 instead of the $10,000 actually withheld from payees. This correction removes the $1,000 that was overreported.¡±

Paid Preparer Use Only

A paid preparer must sign Form 945-X and provide the information in the Paid Preparer Use Only section of Part 4 if the preparer was paid to prepare Form 945-X 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, you¡¯re not required to 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 whether federal income tax withholding is required on certain payments.