What This Notice Means
The IRS received your federal tax deposit. The problem is how you made it. Federal tax deposits must be made electronically, and yours wasn't.
The deposit itself was received. This notice is about fixing the method going forward.
What to Do
Make all future deposits electronically. You have three options:
- EFTPS, the Electronic Federal Tax Payment System. You enroll at EFTPS.gov or by phone.
- Business Tax Account, the IRS online account for businesses.
- Direct Pay for Business.
Set this up now, before your next deposit is due. Enrollment isn't instant, and you don't want the next deposit stuck waiting for access.
Why It Matters
Deposit rules are strict. A deposit that isn't made the required way can be treated as not properly deposited, and failure to deposit penalties can apply. Getting the method right protects you from penalties on deposits you actually made.
If you use a payroll provider, confirm they're depositing electronically for you, under your correct EIN.
Check Your Records
Look back at your recent deposits. If others were also made by check or another non-electronic method, expect the IRS to see the same issue. Watch for further notices on your account and keep proof of every deposit.
Resources
- Publication 15, (Circular E), Employer's Tax Guide
- Publication 966, Electronic Choices to Pay All Your Federal Taxes
- Publication 4990, Payment Instruction Booklet for Business & Individual Taxpayers
If your business has received deposit penalty notices, call us at (813) 229-7100.