Receiving a tax notice or letter is never a pleasant experience. It can be confusing and frustrating if you don't understand why you received the notice in the first place. That's why we wrote The Ultimate Guide to Tax Notices and created a tax notice library filled with the most common tax notices and letters you might receive. We believe the process of staying compliant with your taxes should be as effortless as possible.
General Information
- What is the notice number? CP136
- What government agency sends this notice? The Internal Revenue Service (IRS)
- What is this notice about?
- Your deposit requirements for your Form 941, Employer's Quarterly Federal Tax Return, filings for next year may be different from your requirements for last year. The IRS bases your deposit requirement on the total tax you reported on your Forms 941 for the four previous consecutive quarterly periods (the lookback period).
- What should you do if you receive this notice?
- If your total tax liability for the lookback period was $50,000 or less, you will be a monthly depositor next year. Monthly depositors must deposit taxes on wages paid during the month by the 15th of the following month.
- If your tax liability for the lookback period was over $50,000, you will be a semi-weekly depositor. Semi-weekly depositors must deposit taxes on wages paid on Saturday, Sunday, Monday, or Tuesday by the following Friday. Taxes on wages paid on Wednesday, Thursday, or Friday are due the following Wednesday.
- If the tax amounts the IRS used to determine your deposit requirement differ from your tax records, then you should determine the appropriate deposit schedule.
- If the tax amount the IRS used is zero for any tax period, then they have no record of receiving Form 941 for that period. Please file any missing Form 941 as soon as possible.
FAQs & Additional Information
- How do I show my payments when I file Form 941? The IRS has a record of your payments. They don't need you to show your payments. Show only the tax liabilities.
- How do I show the tax liabilities? If you are a monthly depositor, enter the taxes due for each month on Part 2 of Form 941. If you are a semi-weekly depositor, use Schedule B (Form 941), Report of Tax Liability for Semiweekly Schedule Depositors, to enter the tax due for each date you paid your employees.
- What do I do if the tax liability on the notice is incorrect? The tax on the notice includes only the tax liability on your original Forms 941 during the lookback period. Don't include amended returns. Base your deposit requirements on the original tax liability for the lookback period.
- Do I have to file electronically?
- You must pay all deposits electronically unless one of the two conditions apply:
- Your tax liability is less than $2,500
- The tax for the prior tax period was less than $2,500 and you did not have a $100,000 liability due the next day
- If your tax for the quarterly tax period is less than $2,500, you can pay with the payment voucher attached to Form 941.
- You must pay all deposits electronically unless one of the two conditions apply:
- What if my accumulated tax liability reaches $100,000? You must deposit the next business day. Once your accumulated tax liability reaches $100,000 for any month, you immediately become a semi-weekly depositor for the rest of the current year and the next year.
- Who can call the IRS about this notice?
- In the case of a small partnership that hasn’t designated a tax-matters partner, any partner can call the IRS. Otherwise, only the tax matters partner or someone who the tax matters partner authorizes using Form 2848, Power of Attorney and Declaration of Representative.
- In the case of a corporation, any corporate officer authorized to bind the corporation with his or her signature or anyone who the corporation’s chief officer authorizes using Form 2848 may call.
What does it look like?
Resources
Looking for more information about this notice? Here are some helpful resources:
- About the notice - https://www.irs.gov/individuals/understanding-your-cp136-notice
How can we help you today?
Are you looking for more information about your tax notice or other challenges? DiMercurio Advisors has a dedicated team supporting tax notices, audits and more. We are passionate about ensuring you are well-informed and in control of your tax situation.
