Paying Federal taxes with Form 945

[perplexedbypensions]

Hi, in January of 2022, a participant distribution was processed form funds in a pooled account.  The participant received his net amount, and the employer received a check for the federal tax withholdings.  Now, 6 months late, he is asking us what to do with the check.

My understanding is that it needs to be remitted to the IRS either through EFTPS, or by sending by mail with Form 945 and 945-V.

The client does not want to send electronically.  The only 945 form I can find is the 2021 form, but this is a 2022 payment.

What does one do in this instance when there is not an applicable for for the current year?

Thank you all!

[perplexedbypensions]

Additional info:  the federal tax withholding is $650.

[Lou S.]

It's been a long time since I sent in an actual check for withholding for a 945 but if it's under $2500 don't you file it with the 945 in January? I suppose you could print the most recent 945-V and cross out 2021 and write in 2022, that might work but I can't guarantee it.

[pmacduff]

Lou is correct - according to the 2021 945 instructions:  "If the total amount of tax for 2021 is less than $2,500, you’re not required to make deposits during the year."

You will be able to get a voucher for 2022 when the 2022 945 forms are release later this year.

Hope this is helpful.

[perplexedbypensions]

Thank you for these replies.  So, does that mean that the amount of federal taxes remains in the pooled trust account until payment needs to be made?

A check has already been issued to the plan sponsor to remit to the IRS, and it is sitting on his desk, waiting for us to tell him how to get it to the IRS.

[WDIK]

A possible downside of waiting on the $650 deposit,and using the 945-V in January is when a second participant receives a distribution in November with tax withholding of $2,000.  Now the total annual tax withheld exceeds the $2,500 limit and the deposit of $650 is late and generates penalties.