VALID › Notice Library › CP238 Notice
In the IRS’s own words · not reviewed by VALID
CP238 notice explained, in the IRS’s own words
We waived the federal tax deposit penalty because you’re filing Form 941, 943 or 944 for the first time.
Read the full CP238 page on irs.gov ↗
What 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
- 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).
Review your records to determine what payments were late or not filed electronically.
Do I need to contact you about the late deposits?
You don’t need to contact us.
What if I don’t know what payments were late?
You can call us at 800-829-0115.
How do you decide if we deposit monthly or semi-weekly?
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 we show that your deposit requirements will change for the next year, we’ll send you a notice in November.
Tips for next year
- Review the lookback period every October to determine your correct deposit requirements for next year.
- Set reminders or mark your calendar to ensure you don’t miss a deposit due date.
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.