What’s New for the 2025 Tax Year 

The IRS has introduced significant updates to Form 945 for the 2025 tax year, modernizing the filing and refund process to improve efficiency and security. These changes reflect the government’s commitment to streamlining tax operations through electronic payment systems.  

1. Direct Deposit Refunds Now Available 

Following Executive Order 14247 issued on March 25, 2025, the IRS now offers direct deposit for Form 945 tax refunds. This modernization initiative promotes operational efficiency by mandating electronic payments for all federal disbursements.  

Benefits of direct deposit: 

• Fast, simple, and secure refund delivery 
• Automatic deposit to your checking or savings account 
• No more waiting for paper checks in the mail 

Note: You can still choose to apply your overpayment to your next return by checking the appropriate box on line 6b instead of requesting a direct deposit refund.

2. Mandatory Electronic Balance Due Payments 

Executive Order 14247 also requires all payments to the federal government to be made electronically. If you have a balance due on Form 945, you must pay it electronically using one of the IRS’s secure payment methods.  

Electronic payment options include: 

• Electronic Funds Withdrawal (EFW)
• Electronic Federal Tax Payment System (EFTPS) 
• Check or money order 
• Credit or debit card payments 
  

3. Electronic Return Transcripts Available 

For tax years 2023 and later, you can now access your Form 945 return transcripts   electronically through your IRS business tax account. This offers quick, instant access to your filing history without waiting for paper transcripts. 

Understanding Form 945 

Form 945, Annual Return of Withheld Federal Income Tax, is used by employers and other entities to report federal income tax withheld from non-payroll payments. Unlike Form 941 which covers payroll taxes, Form 945 is specifically for reporting backup withholding, withholding certain government payments, and other non-payroll income tax withholding. 

_{For more information, see the Instructions for Form 945} 

Who Must File Form 945? 

You must file Form 945 if you withheld federal income tax from: 

• Backup withholding 
• Pensions, annuities, and IRAs 
• Military retirement 
• Gambling winnings 
• Certain government payments 
• Indian gaming profits 

Important: Form 945 is an annual return, filed once per year for the entire calendar year. The due date is typically January 31 of the following year, or February 10 if you deposit all taxes when due. 

Correcting a previously filed Form 945. 

If you discover an error on a previously filed Form 945, or need to amend it for any reason, you must use Form 945-X, Adjusted Annual Return of Withheld Federal Income Tax or Claim for Refund.

Important: Form 945-X is filed separately from Form 945. If you filed your original Form 945 electronically, you can also e-file Form 945-X to submit corrections securely and efficiently. 

_{For more information, see the Instructions for Form 945-X} 

How TaxZerone Simplifies Form 945 Filing 

Filing Form 945 doesn’t have to be complicated or expensive. TaxZerone makes the process straightforward with our user-friendly platform designed specifically for small businesses and tax professionals. 

Our Features: 

• _{Accurate & Reliable Filing: Ensure your Form 945 is filed correctly with our built-in IRS validation system.}
• _{Step-by-Step Guidance: Follow easy, on-screen instructions that simplify every step of the filing process.}
• _{Error Checking: Built-in validation catches common mistakes before filing.}
• _{Real-Time Notifications: Get instant updates on your IRS submission and acceptance status.}
• _{Affordable Pricing: E-file Form 945 online for just $6.99 per return — fast, secure, and budget-friendly.}
• _{Deadline Reminder: Receive timely alerts so you never miss an IRS due date.}
• _{Record Keeping: Access your filing history and download copies anytime.} 

Deadlines for 945 form 2025 

Mark these important dates on your calendar to ensure timely filing and avoid penalties: 

• February 2, 2026: Deadline to file Form 945 for the 2025 tax year if you made timely deposits throughout the year 

• February 10, 2026: If you made full tax deposits on time for the year, you may file the return by this extended deadline.

Once you e-file your Form 945 with TaxZerone, you’ll automatically receive reminders every year to help you stay on top of future deadlines. 

Deposit Schedules 

Your deposit schedule depends on your total tax liability: 

• Monthly depositor: If your total tax liability is $50,000 or less during the lookback period 

• Semi-weekly depositor: If your total tax liability exceeds $50,000 during the lookback period 

Caution: If you’re a monthly schedule depositor and accumulate a tax liability of $100,000 or more on any day during a calendar month, your deposit schedule changes on the next day to semiweekly for the remainder of the year and for the following year.   

Also Read: IRS Releases Draft Form 941 for the 2026 Tax Year