Correcting Form 945

[Guest bmurphy]

An employer client of ours submitted an incorrect 945 form for 2001. Apparently there was a distribution done & taxes withheld, but no remittance was done so line 4 was underreported. Employer then added this amount to their first remittance in 2002. This now creates a problem with the 2002 945. What is the best way to resolve?

[Earl]

since no one has said anything, I will take a crack at it:

I think you would have to:

1. amend the 2002 945 by filing 941-c. I would explain the dating error on the explanation section as well as....

2. call the irs (with 2848 on file) and tell them you need to correct the quarter credited date on a deposit/part of a deposit. this will prevent any problem with the 2003 reporting but will create a problem of late payment for 2002 so you will have to....

3. pay the fine for late payment of 2002 tax when they contact you.

hope that helps....

[Guest Robin Vatalaro]

An added thought, it may be worth protesting the fine. I have had several instances of payroll tax withholding fines abated where there was a prior history of good faith compliance (and I wrote a protest letter on behalf of a client). It's worth a shot.