You received this notice because your deposit schedule, the Record of Federal Tax Liability (ROFTL), had missing or incorrect information. We need additional information from you.
What you need to do
- Read your notice carefully.
- Complete the ROFTL enclosed with the notice. Have the appropriate person sign the attached Response form and return it with the completed ROFTL so that we receive it within 45 days of the date on your notice.
- Make sure your reply is accepted; be sure to do the following:
- Report each tax liability. If you are required to follow a monthly schedule, list the total liability for each month. If you are required to follow a semi-weekly schedule, list the tax liability amount for each pay date.
- Do not report your deposits.
- Don’t show negative amounts. If an adjustment decreases your tax liability, apply the decrease to the corresponding tax liability amount on the ROFTL schedule but don’t reduce the amount below zero. Apply any remaining decrease to later liability amounts
- Check that the total amount on your ROFTL schedule equals your total tax liability on your return.
Answers to Common Questions
What will happen if I don’t reply timely?
We’ll figure a penalty by averaging the total tax liability and distributing it throughout the tax period. Your payments and deposits will be applied to the average liabilities in the order we receive them. If your reply is received late, we will assess an averaged penalty. After the penalty is assessed, we will review your reply and adjust the penalty.
I included a record of tax liability. Why do I need to reply?
We could not process your ROFTL. An entry may be incorrect, missing, illegible, have a negative number, or the total liability did not equal the total tax.
I was unable to make one of the deposits on time. What should I do?
We can’t consider requests to remove deposit penalties unless 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 are required to follow a semi-monthly deposit schedule, be sure to list the liability amount for each payday.
Tax publications you may find useful
- Publication 1, Your Rights as a Taxpayer (.pdf)
- Publication 15, Circular E, Employer's Tax Guide (.pdf)
- Publication 15-A, Employer's Supplemental Tax Guide (Supplement to Circular E, Employer's Tax Guide, Publication 15) (.pdf)
- Notice 931, Deposit Requirements for Employment Taxes (.pdf)
- Full list of tax forms and instructions
How to get help
- Call the 800, 866 or 888 number listed on the top right corner of your notice.
- Authorize someone (such as an accountant) to contact the IRS on your behalf using Form 2848, Power of Attorney and Declaration of Representative (PDF)
- See if you qualify for help from a Low Income Taxpayer Clinic.