Understanding Your CP137B Notice
The CP 137B explains deposit requirements for your Form 945 filings for next year, and may be different from your requirements for last year. We base your deposit requirement on the total tax you reported on your Form 945 for the previous year (the lookback period).
What you need to do
- You will be a monthly depositor next year if your total liability for last year was $50,000 or less. Monthly depositors must deposit withholding taxes on nonpayroll payments paid during the month by the 15th of the following month.
- You will be a semi-weekly depositor if your tax liability for last year was over $50,000. 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.
- You should determine the appropriate deposit schedule if the tax amount we used to determine your deposit requirement differs from your tax records.
- We have no record of receiving Form 945 last year if the tax amount we used is zero. Please file Form 945 as soon as possible.
You may want to...
- Visit www.irs.gov for tax forms, instructions, and publications.
- Check your records to verify that they show the same liability amount as the CP 137B.
Answers to Common Questions
How do I show my payments when I file Form 945, Annual Return of Withheld Federal Income Tax?
We have a record of your payments. We don’t need you to show your payments, only the tax liabilities.
How do I show the tax liabilities?
Enter the taxes due for each month on Form 945, line 7, Monthly Summary of Federal Tax Liability, if you are a monthly depositor. Use Form 945-A, Annual Record of Federal Tax Liability, to enter the tax due for each date you made nonpayroll payments if you are a monthly depositor.
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 file electronically?
You must pay all deposits electronically unless your tax liability is less than $2,500. You can pay with Form 945-V, Payment Voucher, if your tax for the year is less than $2,500. 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 and the next year once your accumulated tax liability reaches $100,000 for any month.