* See, Institute Memorandum to Operations Members No. 1-94, Pension
Members No. 1-94, Tax Members No. 3-94 and Transfer Agent advisory Committee
No. 2-94, dated January 19, 1994.
September 8, 1994
TO: OPERATIONS MEMBERS NO. 30-94
PENSION MEMBERS NO. 25-94
TAX MEMBERS NO. 38-94
TRANSFER AGENT ADVISORY COMMITTEE NO. 33-94
RE: IRS ISSUES NEW FORM 945
__________________________________________________________
Attached are copies of the Internal Revenue Service's new
Form 945, Annual Return of Withheld Federal Income Tax, and Form
945-A, Annual Record of Federal Tax Liability. Under new
regulations adopted last December and effective for amounts
withheld after December 31, 1993, all "nonpayroll" income tax
withholding (e.g., backup withholding and withholding on
pensions, annuities and IRAs) is to be reported on the new IRS
Form 945, while all "payroll" withholding will continue to be
reported on IRS Form 941 (Employer's Quarterly Federal Tax
Return.* Withheld "payroll" and "nonpayroll" amounts will
likewise be deposited separately.
The instructions accompanying the new Form 945 note that
because some nonqualified pension plans and some other deferred
compensation arrangements are treated as wages and are reported
on Form W-2, Form 941, Employer's Quarterly Federal Tax Return,
should be used in those cases, not Form 945.
The instructions also suggest that filers use the blue
machine-scannable version of Form 945 available from the IRS.
We will keep you advised of developments.
John J. Canary, Jr.
Assistant Counsel - Pension
Peter J. Cinquegrani
Assistant Counsel - Tax
Attachments