Form 945

[Guest ANNEBV]

My clients are all monthly federal tax withholding depositors, all done via EFTPS. I need help confirming how to complete the month-by-month liability box (line 8) on the Form 945.

Our procedure is to do EFTPS early in the month FOLLOWING the month of distribution, typically within 5-7 business days after the end of the month of distribution. My question is...WHEN is the liability & how do you report it properly on the 945?

If the liability month can be the month following the month of distribution (which is the same as our deposit schedule), then what happens with December taxes deposited in the next tax year? Should they get filed on the 2001 945 or the 2002 945?

The 945 confuses me because we indicated on EFTPS that the January 2002 deposits were for the 12/01 tax year...and I cannot grasp what is supposed to be reported on the 945. Can anyone advise me fast???

Thanks!

[pmacduff]

ANNEBV - The 945 is supposed to report the total tax liability and should balance to your total paid. If December deposits for 2001 distributions were made in January of 2002, that would be considered a December liability. Deposits made throughout the 12 months of 2001 should equal the total tax liability for all of your 2001 distributions. Remember also that the line 8 by month only need be completed if the total tax liability was over $2500. Hope this helps.