ratherbereading Posted yesterday at 12:29 PM Posted yesterday at 12:29 PM Client gets a notice from the IRS that Form 945 was not filled out for plan years 2022 and 2024. As a TPA, we do not do this, their recordkeeper (VOYA) does not do it. Their tax person advised them to follow up with their "plan administrator" (meaing us) but technically THEY are the plan administrator so someone in their company should have done it. Why would they not know this. Anyone else run into this issue? 4 out of 3 people struggle with math
AlbanyConsultant Posted yesterday at 12:34 PM Posted yesterday at 12:34 PM Had three clients get these this week. All on plans fully on recordkeeping products that have never filed a 945 for plan purposes. Which makes me wonder if those plan sponsors have previously filed a 945 for some other non-plan related reason... It's always been our experience that whomever is doing the 1099-R should be doing the 945 as well. When we did 1099-Rs for non-product plans (remembering those days un-fondly), we prepared the 945s. ratherbereading and Bri 1 1
Popular Post Paul I Posted yesterday at 01:36 PM Popular Post Posted yesterday at 01:36 PM The instructions for the 945 are very straightforward: "Nonpayroll payments include: • Pensions (including distributions from tax-favored retirement plans, for example, section 401(k), section 403(b), and governmental section 457(b) plans), annuities, and IRA distributions;" "Who Must File If you withhold or are required to withhold federal income tax (including backup withholding) from nonpayroll payments, you must file Form 945." When taxable payments are made from the plan and taxes are withheld, look for the EIN and name that is on the IRS account that receives the deposit of the taxes withheld. The IRS has the capability to add up taxes reported withheld on 1099s using the payer EIN and compare this to the taxes withheld on the 945 by the payer EIN. Short version, look for the payer on the 1099s sent to participants. That is who should have filed the 945. Ideally, the 1099s and the 945 show the plan as the payer and the forms use the plan's EIN. Most problems occur when there is a mismatch between these EINs. Artie M, CuseFan, ratherbereading and 3 others 4 2
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