Form 945-X is used to correct errors on previously filed versions of Form 945. Everybody makes mistakes, especially during the busy annual tax filing season. The Internal Revenue Service understands that this can happen, especially when filing any type of return. Form 945-X, also known as the Adjusted Annual Return of Withheld Federal Income Tax or Claim for Refund, was created for precisely this reason.
The IRS takes care to define the type of error that can be fixed with Form 945-X. “Administrative errors” that occur on Form 945 may be corrected. IRS explains that this error occurs if, “the federal income tax (including backup withholding) you reported on Form 945 is not the amount you actually withheld from payees.” In other worse, you may have miscalculated or incorrectly recorded an important figure.
While it’s important to have a software tool that can support Form 945-X, it is crucial to invest in a tool that can help prevent mistakes altogether. This is exactly the type of service that tools from Advanced Micro Solutions can provide.
How to File Form 945-X
The most difficult part of filing Form 945-X is understanding your initial mistake. While the IRS may tell you that you made a filing error, you’ll need to provide a detailed explanation of how you determined your corrections. Sometimes, the mistake is obvious. Other times, it could take a while to figure out what went wrong.
Once you figure out your mistake, however, the rest of the form is easy. Simply indicate the process for which you are using the form, enter the corrections for the calendar year you’re correcting, and include relevant business information.
Software Solutions for Form 945-X
While it may look intimidating, Form 945-X shouldn’t take much time to complete. In fact, most of the work will be done prior to filling out the document. If you misreport or miscalculate a figure, the IRS may notify you of the error. When this happens, you’ll have a better idea of how you should adjust the filing. If you are not notified by the IRS but know your initial Form 945 has an error, you’ll need to recalculate several figures.
Importantly, you’ll need a software tool to both aid in calculation and support form preparation. AMS Payroll ($129), our semi-automated payroll solution, and the Forms Filer Plus can do just that. AMS Payroll supports Form 945, helping you to automatically calculate tax on payments. More than a standard payroll software, AMS Payroll also supports Forms 941, 940, 943, 944, and the 1040 SchH.
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When you’re ready to file, simply pull up Form 945-X in our Forms Filer Plus ($49) module, a comprehensive filing software. Enter the required information onto a facsimile of the form, then print or electronically file directly from the software. It’s an easy, straightforward, and fast way of making corrections.
We know that mistakes aren’t always preventable, but software solutions from AMS can help you better fix the problem. Call our Sales and Information team at 800-536-1099 for more information about how we can support your Form 945-X filing.