What This Notice Means
Form 945, Annual Return of Withheld Federal Income Tax, covers income tax withheld on nonpayroll payments. A CP137B shows your deposit requirements for next year, based on your Form 945 tax from last year.
Your Deposit Schedule
- Last year's liability was $50,000 or less: you are a monthly depositor next year. Deposit withholding on nonpayroll payments made during a month by the 15th day of the following month.
- Last year's liability was over $50,000: you are a semi-weekly depositor next year. Taxes on payments made Saturday, Sunday, Monday, or Tuesday are due the following Friday. Taxes on payments made Wednesday, Thursday, or Friday are due the following Wednesday.
What to Do
- Check your records against the liability on the notice. If the amount differs from your records, you must determine and follow the correct schedule.
- The notice uses only the liability on your original Form 945 for last year. Don't include amended returns.
If the Amount Is Zero
This one needs attention. If the tax amount on a CP137B is zero, the IRS has no record of receiving last year's Form 945. File it as soon as possible.
Paying and Reporting
- All deposits must be made electronically unless your tax liability is less than $2,500. If your liability for the year is under $2,500, you can pay with Form 945-V, the payment voucher attached to Form 945.
- On Form 945, show your tax liabilities, not your payments. The IRS already has your payment record.
- Monthly depositors enter taxes due for each month on Form 945, line 7. Semi-weekly depositors use Form 945-A to enter tax due for each date of nonpayroll payments.
The $100,000 Rule
If your accumulated 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.
If you received a CP137B notice and the IRS has no record of your Form 945, call us at (813) 229-7100.