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Final 945 form filing


pmacduff
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Plan termed in 2020 and all payouts completed in 2020 along with the required tax withholding and dpeosits.  Plan was a monthly schedule depositor for 2019 (total tax liability was < $50k).

Due to the plan termination and the number of distributions during August of 2020, the withholding deposits for August were over $100k.  If I'm reading the 945 instructions correctly the Plan became a semiweekly depositor because the tax liability in August exceeded $100k.

This means the client must complete and attached Form 945-A instead of Line 7 on the 945. 

Agreed?

 

 

 

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On 1/21/2021 at 11:08 AM, pmacduff said:

Plan termed in 2020 and all payouts completed in 2020 along with the required tax withholding and dpeosits.  Plan was a monthly schedule depositor for 2019 (total tax liability was < $50k).

Due to the plan termination and the number of distributions during August of 2020, the withholding deposits for August were over $100k.  If I'm reading the 945 instructions correctly the Plan became a semiweekly depositor because the tax liability in August exceeded $100k.

This means the client must complete and attached Form 945-A instead of Line 7 on the 945. 

Agreed?

 

 

 

Agreed.

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Agreed.

Per form 945 instructions, line 7 - Monthly Summary of Federal Tax Liability

Report your liabilities on Form 945-A instead of on line 7 if either of the following applies.

• You were a monthly schedule depositor for 2020 and during any month you accumulated nonpayroll taxes of
$100,000 or more. Because this converted you to a semiweekly schedule depositor for the remainder of 2020
(and for 2021), you must report your liabilities on Form 945-A for the entire year. Don't complete entries A through
M of line 7. For more information, see the $100,000 Next-Day Deposit Rule in section 11 of Pub. 15.

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