IRS Federal Deposit Requirement - Notice CP136
What do I do if I receive a CP136 Notice from the IRS?
If you receive a CDOR Filing Change Notice, please share a copy with us so that we may update your organization's deposit requirements. We also monitor your liability requirements and will adjust your deposit schedule accordingly based to ensure compliance. However, we appreciate receiving copies of these notices to include with your account records.
Why did my federal tax withholding deposit frequency change?
Generally, new employers are required to deposit 941 taxes to the IRS on a monthly schedule. This deposit frequency will change when prior 941 tax liability exceeds $50,000 in a lookback period. Example: The four-quarter lookback period for 2022 references the 941 liabilities accrued between July 1, 2020 - June 30, 2021. (NOTE: Colorado and other states follow a lookback period that is based an employer's requirements to deposit CO withholding taxes -- weekly, monthly or quarterly.)
Federal deposit requirements typically only change at the start of a calendar year. However, if you have accumulated more than $100,000 in 941 liabilities, then you will be required to pay those taxes the next day. In addition, your deposit frequency going forward will change to that of a semi-weekly depositor regardless of the time of year.
Will a tax deposit frequency change impact my payroll schedule?
Tax deposit frequency changes will not impact your payroll schedule (payroll frequency). For example, you may continue to run payroll once a month despite even if you have a semi-weekly deposit schedule.
- Semi-weekly Deposit Frequency: If your payroll is dated January 5th, the 941 taxes for that payroll will be due by January 12th
- Monthly Deposit Frequency: Federal withholding taxes for payroll dated February 1st will be due by March 15th
Disclaimer: This information is provided as a self-help tool and does not constitute legal or financial advice. Laws, regulations and lending products are changing daily and decisions as to whether or how to use this information and/or what actions to take are solely those of the employer. The providers of this information disclaim any and all responsibility and liability for its accuracy, completeness or fitness for your particular business purposes.