Next year, you may have different deposit requirements for your Form 945, Annual Return of Withheld Federal Income Tax, based on your Form 945 tax from last year. CP137B shows 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 withholding taxes on nonpayroll payments paid during a month by the 15th day of the following month.
- If your tax liability for last year was over $50,000, you are a semi-weekly depositor next year. Semi-weekly depositors must deposit withholding taxes on nonpayroll payments paid on Saturday, Sunday, Monday, or Tuesday by the following Friday. Taxes on payments paid on Wednesday, Thursday, or Friday are due the following Wednesday.
- Check your records to determine if they agree with the liability shown on CP137B. 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 we have no record of receiving last year's Form 945. Please file Form 945 as soon as possible.
Frequently asked questions
How do I show my payments when I file Form 945?
We have a record of your payments. On Form 945, show the tax liabilities, not your payments.
How do I show the tax liabilities?
If you are a monthly depositor, enter the taxes due for each month on Form 945, line 7. If you are a semi-weekly depositor, use Form 945-A, Annual Record of Federal Tax Liability, to enter the tax due for each date you made nonpayroll payments.
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 945 for last year. Don’t include amended returns. Base your deposit requirements on the original tax liability.
Do I have to pay electronically?
You must pay all deposits electronically, unless your tax liability is less than $2,500. If your tax liability for the year is less than $2,500, you can pay with Form 945-V, Payment Voucher. The payment voucher is attached to Form 945.
What if my accumulated tax liability reaches $100,000?
You must deposit the next business day. You immediately become a semi-weekly depositor for the rest of the current year.