Understanding Your CP236 Notice

We notified taxpayers last November that their deposit requirements will change from monthly to semi-weekly this year. We send CP236 notices to those taxpayers who made no tax deposits in January. Semi-weekly depositors must deposit the Wednesday or Friday after their payroll date. This is a reminder that you may not be following the semi-weekly deposit schedule.

What you need to do

Follow the semi-weekly deposit schedule. If you pay employees or others on Wednesday, Thursday, or Friday, deposit the taxes by the next Wednesday. If you pay on Saturday, Sunday, Monday, or Tuesday, deposit by the next Friday.

Answers to common questions

How do you determine the deposit requirements?
We use a lookback period. For Form 941, it is the four quarters that end on June 30 of the prior year. For annual forms, it is the second previous year. If the total tax on the original return(s) for the lookback period is over $50,000, you are a semi-weekly depositor. If the tax was $50,000 or less, you are a monthly depositor.

What if I did not pay employees during the first three weeks of January?
You don’t need to reply. Just follow the semi-weekly deposit schedule when you have a deposit liability.

Tips for next year

Review the lookback period in October every year to determine the correct deposit requirements for next year.