What This Notice Means

The IRS is checking on you. A CP239 goes out when your current quarter federal tax deposits decreased, or when you were assessed penalties for late federal tax payments. The IRS wants to make sure you're meeting your deposit requirements.

This is a business notice about employment taxes. It's an early warning.

What to Do

Review your current quarter:

  • The taxes you withheld from employees.
  • Your deposit requirements and schedule.
  • The deposits you actually made.

If you under-deposited, bring your deposits up to date through the Electronic Federal Tax Payment System (EFTPS). If everything is correct, you don't need to do anything.

Follow the directions in your notice on how to make a federal tax deposit.

Why This Matters

Payroll taxes are different from other business debts. Much of the money is withheld from your employees' pay and held for the government. When those deposits don't get made, the consequences reach past the business.

Notice 784, Could You be Personally Liable for Certain Unpaid Federal Taxes?, explains how individuals can become personally liable. If you own or run the business, or sign the checks, read it.

A drop in deposits is often the first sign a business is using payroll tax money to cover other bills. If that's happening, stop it now. The problem only gets bigger each pay period.

Resources

  • Publication 15, (Circular E), Employer's Tax Guide
  • Publication 3151-A, The ABCs of FTDs
  • Notice 784, Could You be Personally Liable for Certain Unpaid Federal Taxes?

If your business is behind on payroll tax deposits, call us at (813) 229-7100. The sooner this is addressed, the more options you have.