Draft instructions for the 2020 Form 945, Annual Return of Withheld Federal Income Tax, were released Sept. 29 by the Internal Revenue Service.
The instructions added several references to the new Form 1099-NEC, Nonemployee Compensation. Form 1099-NEC is to be used to report nonemployee compensation paid in 2020 and any backup withholding on the compensation.
“If you withhold or are required to withhold federal income tax (including backup withholding) from nonpayroll payments, you must file Form 945,” the instructions said.
The rest of the Form 945 instructions were updated with minimal changes from the 2019 version, most of which ...
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