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CP217 notice: what it means and what to do
Got an IRS CP217 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 CP217 notice freeWhat the IRS says this notice is about
We received your Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return , but you aren’t required to file this form. Federal, state, and local government agencies are exempt from paying federal unemployment tax.
What you need to do
- Don’t file Form 940.
- Don’t make any deposits for federal unemployment tax.
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
Should I still file Form 941, Employer’s Quarterly Federal Tax Return ? (updated Mar. 16, 2026)
You must file a Form 941 for federal income taxes and other amounts withheld from employees’ compensation. See Publication 15, (Circular E), Employer’s Tax Guide for more information.
What if I made tax deposits for Form 940? (added Mar. 16, 2026)
You can request a refund by filing Form 843, Claim for Refund and Request for Abatement .
Am I also exempt from paying state unemployment tax? (added Mar. 16, 2026)
Contact your state to determine if you must make contributions under the state unemployment compensation law.
Who can I contact if I disagree with this notice? (updated Mar. 16, 2026)
You can call the telephone number on your notice.
Helpful information
- Publication 15, (Circular E), Employer’s Tax Guide
- About Form 843, Claim for Refund and Request for Abatement
Related notices
- Letter 2802C
- CP120A notice
- CP136 notice
- CP136B notice
- CP137 notice
- CP137A notice
- CP137B notice
- CP209 notice