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CP250A notice: what it means and what to do

Got an IRS CP250A 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.

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What the IRS says this notice is about

This notice informs you that your annual federal employment tax filing requirement has changed.

You’re no longer eligible to file Form 944, Employer's Annual Federal Tax Return PDF , to report and pay your employment taxes. Your filing requirement changed because your annual employment tax liability was more than $1,000.

What you need to do

You must file quarterly using Form 941, Employer's Quarterly Federal Tax Return PDF , for the first quarter of the year.

Your deadline

The IRS page for this notice mentions 30 days. Always use the date printed on your own notice.

What to check before you answer

You have 60 days to disagree

If you disagree with the change and ask in writing within 60 days of the notice date, the law requires the IRS to reverse it. If the IRS still disagrees, it must then use the regular process, which keeps your appeal rights.

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.

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Common questions

How can I find out what caused my tax return to change?

Please contact us at the number listed on your notice for specific information about your tax return.

Why can’t I file Form 944?

Your filing requirement changed because your annual employment tax liability was more than $1,000.

When do I file Form 941?

Review Form 941 instructions for reporting and paying employment taxes.

Get my response letter for CP250A notice

Related notices

Source

  1. IRS: Understanding your CP250A notice