Understanding Your CP137A Notice
Your deposit requirements for Form CT-1 for next year may be different, based on your Form CT-1 tax from last year. CP137A gives your deposit requirements for next year.
What you need to do
- If your tax liability for last year was $50,000 or less, you are a monthly depositor next year. Monthly depositors must deposit taxes for wages accumulated during a month by the 15th of the following month.
- If your tax liability for last year was over $50,000, you are a semi-weekly depositor. Semi-weekly depositors must deposit taxes for wages paid on Saturday, Sunday, Monday, or Tuesday by the following Friday. Taxes for wages paid on Wednesday, Thursday, or Friday are due the following Wednesday.
- If the tax amount we used to determine your tax requirement differs from your tax records, then you must determine the appropriate deposit schedule.
- If the tax amount we used is zero, then we may have no record of receiving last year’s Form CT-1. Please file Form CT-1 as soon as possible.
You may want to...
- Visit www.irs.gov for tax forms, instructions, and publications.
- Download Form 945-A, Annual Record of Federal Tax Liability
- Check your records to determine if they agree with the liability amount shown on CP137A.
Answers to Common Questions
How do I show my payments when I file Form CT-1?
We have a record of your payments. Do not show your payments. Show the tax liabilities.
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, Record of Railroad Retirement Tax Liability. If you are a semi-weekly depositor, use Form 945-A 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 liability on the notice includes only the tax liability on your original Form CT-1 for last year. Don’t include amended returns. Determine your deposit requirements based on the correct original tax liability for last year.
Do I have to file electronically?
You must pay all deposits after December 31, 2010 electronically, unless your tax is less than $2,500. If your tax for the year is less than $2,500, you can pay with Form CT-1.
What if my accumulated tax liability reaches $100,000?
If your liability reaches $100,000, you must deposit the next business day. After that, you immediately become a semi-weekly depositor for the rest of the year and the next year.