Understanding Your CP207L Notice

What this notice is about

We are notifying you that your deposit schedule, the Record of Federal Tax Liability (ROFTL), contains missing or incorrect information. We need additional information from you.

What you need to do

• Read your notice carefully.
• Complete a new ROFTL and mail it to the address at the top of your notice within 45 days of the date on your notice.

Frequently asked questions

Why wasn’t my ROFTL accepted with my return? (added September 19, 2025)

We reject ROFTLs with incorrect, missing, illegible, negative entries, or the total liability did not equal the total tax.

To make sure we accept your reply:

• Report each tax liability.
  • If you’re on a monthly schedule, list the total liability for each month.
  • If you’re on a semi-weekly schedule, list the tax liability amount for each pay date.
• Report only liabilities, not your deposits.
• Don’t show negative amounts.
  • If you need to make an adjustment that results in a decrease in your tax liability, apply the decrease to the corresponding tax liability amount, but don't go below zero. Apply any remaining decrease to later liability amounts.
• Check that the total amount on your ROFTL schedule matches the total tax liability on your return.

What will happen if I don’t reply? (updated September 19, 2025)

We’ll figure a penalty by averaging the total tax liability across the tax period. We’ll apply your deposits to the average liabilities in the order we receive them. We’ll charge penalties for any amounts not properly or timely deposited as shown below:

• 1 - 5 days late: 2% penalty
• 6 - 15 days late: 5% penalty
• 16 or more days late: 10% penalty
• If you’re required to use the Electronic Federal Tax Payment System (EFTPS) but don’t: 10% penalty
• If you don’t pay within 10 days of our first notice: 15% penalty

If your response is late, we'll assess the penalty and then review your response to adjust the penalty as needed.

I was unable to make one or more of the deposits on time. What should I do? (updated September 19, 2025)

We can’t consider requests to remove deposit penalties until we have a correct ROFTL. If you believe you had reasonable cause for making a deposit late, include a statement signed under penalty of perjury with your reply.

Tips for next time

Check your ROFTL schedule to be sure it is complete, attached to the return, and the total liability amount equals the total tax. If you’re on a semi-weekly deposit schedule, be sure to list the liability amount for each payday. Refer to the instructions for Schedule B (Form 941), Report of Tax Liability for Semiweekly Schedule Depositors PDF, for more information.

Review the Employer Tax Information section on the Tax Topics page for more information on deposit requirements.