- What it means
- The IRS is telling you whether you deposit employment taxes monthly or semiweekly next year, based on your lookback period.
- Respond within
- The date on the notice
- What to send
- Nothing. Set your payroll system to the schedule named.
- Write it
- Document cover letter
- When to get help
- Not needed.
What the letter says
Deposit frequency is set each year from the tax you reported in the lookback period (the four quarters ending June 30). Under $50,000 in the lookback, monthly. Over, semiweekly.
What to do
Confirm your payroll provider or software is set to the schedule on the notice. Depositing on the wrong schedule triggers a CP207 and a deposit penalty.
What to gather
- The notice
- Your payroll deposit settings
Write back
The Document cover letter tool builds the response in the order the IRS reads it. Fill it in, review it, print it, and send it with copies of the documents above and the notice stub on top.
Before you send anything
This is general information, not tax advice. Situations differ. Check with your tax advisor before you send anything. Nothing on this page creates a client relationship.