What This Notice Means

The IRS waived your federal tax deposit penalty because you're filing Form 941, 943, or 944 for the first time. You made deposits late or not electronically, and you got a pass because you're new.

You don't need to contact the IRS about the late deposits. Don't count on a second waiver.

What to Do

Deposit the correct amount of tax by the due date. Review your records to find which payments were late or weren't made electronically. If you can't tell which ones were late, call the number on your notice.

The Deposit Rules

  • First-time filers deposit monthly.
  • Monthly depositors deposit by the 15th of the next month. If the 15th is a weekend or a District of Columbia holiday, deposit the next business day.
  • If you owe $100,000 or more in one month, deposit the next day. After that, you follow the semiweekly schedule for the rest of the year and the next year.
  • Semiweekly depositors: taxes for wages paid Wednesday through Friday are due the following Wednesday. Taxes for wages paid Saturday through Tuesday are due the following Friday. A holiday after the liability period extends the due date one business day.
  • Deposits must be made electronically using the Electronic Federal Tax Payment System (EFTPS). If your tax is under $2,500, you may pay with the return.

How Your Schedule Is Set Later

After your first year, the IRS uses a lookback period. For Form 941, it's the four quarters that ended June 30 of the prior year. For annual forms, it's the year before last. More than $50,000 in total tax means semiweekly deposits. $50,000 or less means monthly. If your requirements will change, the IRS sends a notice in November.

Next Year

Review the lookback period every October and set calendar reminders for each deposit due date.

If your new business is already behind on payroll taxes, call us at (813) 229-7100.