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In the IRS’s own words · not reviewed by VALID
CP137A notice explained, in the IRS’s own words
Next year, the deposit requirements for your Form CT-1, Employer's Annual Railroad Retirement Tax Return, are changing based on your tax from last year’s Form CT-1. CP137A shows what your new deposit requirements will be.
Read the full CP137A page on irs.gov ↗
What this notice is about
Next year, the deposit requirements for your Form CT-1, Employer's Annual Railroad Retirement Tax Return, are changing based on your tax from last year’s Form CT-1. CP137A shows what your new deposit requirements will be.
What you need to do
- Monthly depositors must deposit taxes for wages paid during a month by the 15th day of the following month.
- Semi-weekly depositors must deposit taxes as explained below:
- For wages paid on Saturday, Sunday, Monday, or Tuesday, you must deposit taxes by the following Friday.
- For wages paid on Wednesday, Thursday, or Friday, you must deposit taxes by the following Wednesday.
- Check your records to determine if they agree with the liability amount shown on CP137A. 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 you may need to file last year's Form CT-1. If you’re not required to file, or you already filed a Form CT-1 that did not show any tax, then no action is needed.
How do I show my payments when I file Form CT-1?
We have a record of your payments. On Form CT-1, show the tax liabilities, not your payments.
How do I show the tax liabilities?
If you are a monthly depositor, enter the Tier 1 and Tier 2 taxes due for each month on Form CT-1, Part II. If you are a semi-weekly depositor, use Form 945-A, Annual 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?
The tax on the notice includes only the tax liability on your original Form CT-1 for last year. Don't include amended returns. Base your deposit requirements on the original tax liability.
Do I have to pay electronically?
The payment voucher is attached to Form CT-1 PDF.
To enroll or find more information on how to pay electronically, see EFTPS: The Electronic Federal Tax Payment System
What to do next
- Write down the date on the letter today.
- Look the number up on irs.gov yourself. Don’t trust a link or phone number from anyone else.
- If it says you owe money or proposes changes to your return, take it to a licensed CPA, EA or tax attorney before that date.
Not advice. Not a filing. Verify with a licensed professional. Rules change by year and facts.