Taxpayers have been receiving CP136 notices from the IRS to update their 2023 deposit requirements for Form 941, Employer's Quarterly Federal Tax Return. These notices report taxpayer liabilities from Form 941 for the periods July 1, 2021, to June 30, 2022, to determine deposit requirements. Many notices are reporting the liability for the quarter that ended June 30, 2022, as zero, which may be incorrect. The incorrect liability may affect the IRS' determination for deposit requirements.

Per a telephone conversation with the IRS, Forms 941 for the quarter that ended June 30, 2022, have been received, but the liability for this quarter was not updated in their system prior to the computer-generated notices being issued. Therefore, the notice may provide incorrect information. In many cases, a taxpayer's deposit requirements for 2023 will remain unchanged from 2022.

It is the taxpayer's responsibility to calculate their correct deposit requirements for Form 941 using the look-back period. They must not rely on incorrect information provided by the IRS.

If you are a client of SEK who needs assistance calculating the correct deposit requirements for Form 941 for 2023, please contact your Client Relationship Manager. If you are not a client, please call one of our offices or complete the consultation request form below - we can help!