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CP137B notice: what it means and what to do
Got an IRS CP137B 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 CP137B notice freeWhat the IRS says this notice is about
Next year, you may have different deposit requirements for your Form 945, Annual Return of Withheld Federal Income Tax , based on your Form 945 tax from last year. CP137B shows your deposit requirements for next year.
What you need to do
- If your tax liability for last year was $50,000 or less, you are a monthly depositor next year. Monthly depositors must deposit withholding taxes on nonpayroll payments paid during a month by the 15th day of the following month.
- If your tax liability for last year was over $50,000, you are a semi-weekly depositor next year. Semi-weekly depositors must deposit withholding taxes on nonpayroll payments paid on Saturday, Sunday, Monday, or Tuesday by the following Friday. Taxes on payments paid on Wednesday, Thursday, or Friday are due the following Wednesday.
- Check your records to determine if they agree with the liability shown on CP137B. If the amount we used differs from your tax records, then you must determine and follow the appropriate deposit schedule.
- If the tax amount we used is zero, then we have no record of receiving last year's Form 945. Please file Form 945 as soon as possible.
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
We have a record of your payments. On Form 945, show the tax liabilities, not your payments.
If you are a monthly depositor, enter the taxes due for each month on Form 945, line 7. If you are a semi-weekly depositor, use Form 945-A, Annual Record of Federal Tax Liability, to enter the tax due for each date you made nonpayroll payments.
The tax on the notice includes only the tax liability on your original Form 945 for last year. Don’t include amended returns. Base your deposit requirements on the original tax liability.
You must pay all deposits electronically, unless your tax liability is less than $2,500. If your tax liability for the year is less than $2,500, you can pay with Form 945-V, Payment Voucher. The payment voucher is attached to Form 945.
You must deposit the next business day. You immediately become a semi-weekly depositor for the rest of the current year.
Get my response letter for CP137B noticeRelated notices
- Letter 2802C
- CP120A notice
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- CP209 notice
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