Understanding Your CP238 Notice

What this notice is about

We waived the federal tax deposit penalty because you’re filing Form 941, 943 or 944 for the first time.

What you need to do

Deposit the correct amount of tax by the due date.

What you need to know

• First time filers deposit taxes monthly but if you owe $100,000 or more in one month, you must deposit the next day. Then, you must follow the semiweekly deposit schedule for the rest of the year and the next year.
• Monthly taxpayers must deposit by the 15th of the next month. If the 15th is a weekend or holiday in the District of Columbia, you must deposit the next business day.

• Taxes for wages paid on Wednesday to Friday by semiweekly depositors are due the following Wednesday. Taxes for wages paid on Saturday to Tuesday are due the following Friday. If there is a holiday after the liability period, the due date is extended one business day.

You must deposit electronically using the Electronic Federal Tax Payment System (EFTPS). If your tax is under $2,500, you may pay with the tax return.

Review your records to determine what payments were late or not filed electronically.

Frequently asked questions

Do I need to contact you about the late deposits? (updated Nov. 17, 2025)

You don’t need to contact us.

What if I don’t know what payments were late? (updated Nov. 17, 2025)

You can call us at 800-829-0115.

How do you decide if we deposit monthly or semi-weekly? (updated Nov. 17, 2025)

We use a lookback period. For Form 941, we look at the last four quarters that ended on June 30 of the prior year. For annual forms, we look at the year before last. If your total tax for that time was more than $50,000, you must deposit taxes twice a week. If it was $50,000 or less, you can deposit taxes once a month.

If we show that your deposit requirements will change for the next year, we’ll send you a notice in November.

Tips for next year

• Review the lookback period every October to determine your correct deposit requirements for next year.
• Set reminders or mark your calendar to ensure you don’t miss a deposit due date.

Helpful information

• Tax Topic 757, Forms 941 and 944 – deposit requirements

• Publication 15, “Circular E”, Employer’s Tax Guide
• Publication 51, “Circular A”, Agricultural Employer’s Tax Guide
• Notice 931 PDF, Deposit Requirements for Employment Taxes
• Publication 966 PDF, Electronic Choices to Pay All Your Federal Taxes