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CP137 notice: what it means and what to do
Got an IRS CP137 notice? Here is what it means, your deadline, what to check before you answer, and how to reply. Check your own letter free: it stays on your phone.
Check my CP137 notice freeWhat the IRS says this notice is about
This notice explains to you what your new Federal Tax Deposit (FTD) schedule is for next year’s Form 943, Employer's Annual Federal Tax Return for Agricultural Employees , based on your tax from last year’s Form 943.
What you need to do
- If your tax liability for last year was $50,000 or less, you’ll be a monthly depositor next year. Monthly depositors must deposit taxes for wages accumulated during a month by the 15th of the following month.
- If your tax liability for last year was over $50,000, you’ll be a semiweekly depositor next year. Semiweekly depositors must deposit taxes as explained below: For wages paid on Saturday, Sunday, Monday, or Tuesday then you must deposit taxes by the following Friday.
- For wages paid on Wednesday, Thursday, or Friday then you must deposit taxes by the following Wednesday.
- You must determine the appropriate deposit schedule if the tax amount we used to determine your tax schedule is different from your tax records.
- If the tax amount we used is zero, then you may need to file last year’s Form 943 . If you’re not required to file or you already filed a Form 943 that did not show any tax, then no action is needed.
Your deadline
Answer by the date printed on your notice. If there is no date, answer as soon as you can, and call the number on the notice if you need more time.
What to check before you answer
Is this letter really from the IRS?
The IRS writes first by mail. A real letter shows a notice or letter number, your name and part of your tax ID number. The IRS does not ask for payment by gift card, crypto or wire transfer. If in doubt, sign in to your IRS online account, where many notices are listed.
Common questions
How do I show the payments I made when I file Form 943, Employer’s ANNUAL Federal Tax Return for Agricultural Employees? (updated Nov. 18, 2025)
We have record of your payments. You only need to show the tax liabilities.
How do I show the tax liabilities? (updated Nov. 18, 2025)
If you’re a monthly depositor, enter the payroll tax due for each month in the monthly summary of federal tax liability. If you are a semiweekly depositor, use Form 943-A, Agricultural Employer’s Record of Federal Tax Liability PDF , 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 because I filed a Form 943-X? (updated Nov. 18, 2025)
We determine your deposit requirements based on the original tax liability for last year. If adjustments were made by filing a Form 943-X that adjusted tax liability won’t affect or change your deposit schedule.
Do I have to pay electronically? (updated Nov. 18, 2025)
Yes, you must pay all Federal Tax Deposits electronically, unless your tax is less than $2,500. If your tax for the year is less than $2,500, you can pay that amount with your Form 943.
What if my accumulated tax liability reaches $100,000? (updated Nov. 18, 2025)
If your liability reaches $100,000, you must deposit by the close of the next business day. After that, you’ll immediately become a semiweekly depository for the rest of the year and the next year.
Helpful information
- Publication 51, (Circular A), Agricultural Employer’s Tax Guide PDF
- Form 943-A, Agricultural Employer’s Record of Federal Tax Liability PDF
- Notice 931, Deposit Requirements for Employment Taxes PDF
Related notices
- Letter 2802C
- CP120A notice
- CP136 notice
- CP136B notice
- CP137A notice
- CP137B notice
- CP209 notice
- CP211A notice