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CP238 notice: what it means and what to do
Got an IRS CP238 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 CP238 notice freeWhat the IRS says this notice is about
We waived the federal tax deposit penalty because you’re filing Form 941, 943 or 944 for the first time.
What you need to do
Deposit the correct amount of tax by the due date.
What you need to know
- First time filers deposit taxes monthly but if you owe $100,000 or more in one month, you must deposit the next day. Then, you must follow the semiweekly deposit schedule for the rest of the year and the next year.
- Monthly taxpayers must deposit by the 15th of the next month. If the 15th is a weekend or holiday in the District of Columbia, you must deposit the next business day.
- Taxes for wages paid on Wednesday to Friday by semiweekly depositors are due the following Wednesday. Taxes for wages paid on Saturday to Tuesday are due the following Friday. If there is a holiday after the liability period, the due date is extended one business day.
You must deposit electronically using the Electronic Federal Tax Payment System ( EFTPS ). If your tax is under $2,500, you may pay with the tax return.
Review your records to determine what payments were late or not filed electronically.
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
You may be able to remove the penalties
If you had no penalties in the 3 tax years before, filed all required returns, and paid or arranged to pay the tax, the IRS First-Time Abatement policy can remove failure-to-file and failure-to-pay penalties. You can ask in writing or by phone.
Cannot pay it all now? Ask for a payment plan
You can apply for a payment plan on irs.gov. Interest keeps running until the balance is paid, so pay what you can now.
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
Do I need to contact you about the late deposits? (updated Nov. 17, 2025)
You don’t need to contact us.
What if I don’t know what payments were late? (updated Nov. 17, 2025)
You can call us at 800-829-0115 .
How do you decide if we deposit monthly or semi-weekly? (updated Nov. 17, 2025)
We use a lookback period. For Form 941, we look at the last four quarters that ended on June 30 of the prior year. For annual forms, we look at the year before last. If your total tax for that time was more than $50,000, you must deposit taxes twice a week. If it was $50,000 or less, you can deposit taxes once a month.
If we show that your deposit requirements will change for the next year, we’ll send you a notice in November.
Get my response letter for CP238 notice