List of Common IRS Notices for Businesses

The IRS collection notices and other tax notices on this page are commonly sent to business filers that use forms 941, 1065, and 1120 to file their federal tax return. Here is a listing of the most common IRS forms for businesses.

CP 101 – Math Error, Balance Due on Form 940

The IRS sends CP 101 to let you know that they are changing your federal unemployment tax return (940 or 940EZ) and that you now owe the IRS money.

CP 102 – Math Error, Balance Due on Form 941, 941SS, 943, or 945

The IRS sends CP 102 to let you know they have made a change to your tax return (941, 941SS, 943, or 945) and that you now owe the IRS money.

CP 108 – Problem with Your Federal Tax Deposit

If the IRS had a hard time determining which tax type or tax period your federal tax deposit was intended to cover, they will send CP 108 to let you know how they applied the federal tax deposit.

CP 111 – Math Error, Overpayment on Form 940

The IRS sends CP 111 to let you know that they made a change to your federal tax return (940 or 940EZ) and that you have overpaid as a result of that change.

CP 112 – Math Error, Overpayment on Form 941, 941SS, 943, or 945

The IRS sends CP 112 to let you know that they made a change to your federal tax return (941, 941SS, 943, or 945) and that you have overpaid as a result of that change.

CP 138 – Overpayment Applied to Other Federal Taxes

The IRS sends CP 138 to let you know that they applied any overpayment you made to other taxes you owe. This IRS notice includes information about where the overpayment was applied along with amounts.

CP 139 – You May Not Need to File Forms 940 or 941

The IRS sends CP 139 if you are no longer required to file form 940. If you have filed no tax due for four straight quarters, the IRS uses this notice to let you know that you don’t have to file unless you owe tax. It also includes instructions on how to request forms to be sent you in the future.

CP 145 – Application of Overpayment Reduced

The IRS sends CP 145 to let you know that they were not able to apply the entire requested overpayment amount to the following tax period. This IRS notice includes possible reasons for the overpayment reduction and specifies how much the IRS was able to apply toward the next payment period.

CP 160 – Reminder of Balance Due

The IRS sends CP 160 to remind you that you owe the IRS money and that the balance due will continue to accrue penalties and interest until you pay the total amount due in full.

CP 161 – Balance Due – Request for Payment or Notice of Unpaid Balance

The IRS sends CP 161 to let you know that you owe them money and to request payment. They may also include a number of forms or schedules related to your specific federal tax liability needs.

CP 165 – Penalty for Dishonored Check (Federal Tax Deposit)

The IRS sends CP 165 to let you know that they assessed you a penalty if your bank returned your federal tax deposit check as unpaid. This IRS notice requests that you resend payment and include the additional penalty in the total amount.

CP 166 Electronic Fund Transfer – Notice of Insufficient Funds Penalty

The IRS sends CP 166 to let you know that there were insufficient funds in your account to cover the installment payment you agreed to.

CP 167 – We are Proposing a Federal Unemployment Tax Increase

The IRS sends CP 167 if they found a discrepancy between the information you reported to the IRS and the information on record with your state unemployment agency. This IRS notice lets you know what the discrepancy is, proposes an increase in your federal unemployment tax, and instructs you of what to do if you disagree with the increase.

CP 168 – We are Proposing a Federal Unemployment Tax Decrease

The IRS sends CP 168 if they found a discrepancy between the information you reported to the IRS and the information on record with your state unemployment agency. This IRS notice lets you know what the discrepancy is, proposes a decrease in your federal unemployment tax, and instructs you of what to do if you disagree with the decrease.

CP 174 – Unemployment Tax Return Incomplete – Exempt Payments Not Explained

The IRS sends CP 174 if your explanation for exempt payments listed on your unemployment tax return is either missing or unacceptable. This IRS notice demands that you send to the IRS a better explanation for your exempt payments.

CP 207 – Proposed FTD Penalty – Request for Correct Information

The IRS sends CP 207 to tell you that your ROFTL (record of federal tax liability) was missing, incomplete, illegible, or showed a tax liability that didn’t match the taxes on your return. This IRS notice informs you that the IRS has added a penalty for this mismatch in data and requests that you submit another ROFTL so they can process your tax return.

CP 209 – EIN Assigned in Error

The IRS sends CP 209 when they inadvertently assign you more than one EIN (employment identification number). This IRS notice identifies the erroneous EIN and asks you to destroy the federal tax deposit coupon book showing the number.

CP 235 – Federal Tax Deposit Penalty Waived Due to Change in Deposit Requirements

The IRS sends CP 235 if you didn’t send in your federal tax deposit under your current requirements and if you qualify for penalty relief. This IRS notice lets you know that you don’t have to pay the penalty that would normally be assessed for missing a federal tax deposit deadline.

CP 236 – Reminder of Your Semi-Weekly Deposit Requirements

If the IRS changes your monthly deposit schedule to a bi-weekly deposit schedule and you continue to send deposits monthly, they send CP 236 to remind you that you need to send your payments every other week instead of once a month.

CP 238 – You Made One or More Late Federal Tax Deposits but We Didn’t Charge You a Penalty

The IRS sends CP 238 to you if you are new to filing federal tax deposits and you’ve missed or been late on sending in payments. This IRS notice lets you know that the IRS is waiving late penalties and includes commonly asked questions and additional information about federal tax deposits and how to make them.

CP 253 – Your Wage Reports Do Not Match the Amounts on Your Employment Tax Returns

The IRS sends CP 253 when you reported amounts on form W-3 to the Social Security Administration that differ from what you reported on forms 941, 943, 945, or Schedule H. This IRS notice asks that you refile forms to clear up the discrepancy or send documentation showing that the records of either the IRS or the Social Security Administration are incorrect.

CP 260 – Credit Adjustment

If the IRS mistakenly applies a credit to your account and then catches their own mistake, they send CP 260 to let you know that they have reversed their error and that you now owe them a balance along with any additional penalties and fees.

CP 261 – Notice of Acceptance as an S-Corporation

The IRS sends CP 261 to let you know they accepted your request to be treated as an S-corporation and to remind of the associated obligations.

CP 267 – Account Overpaid – Possibly Misapplied Payments

The IRS sends CP 267 if you sent in more money than your tax account shows you owe. This IRS notice informs you of the overpayment and asks you to specify where the payment should be applied.

CP 268 – Correction and Overpayment Notice

The IRS sends CP 268 to let you know that they made changes to your return during processing that created a difference between the number of credits you claim and the number of credits shown in IRS records. This notice explains that the difference resulted in overpayment on your part and asks you to verify that the credits posted to your account are accurate.

CP 297 – Notice of Intent to Levy and Notice of Your Right to a Hearing

The IRS sends CP 297 to warn you and to notify you that they intend to levy your property if you don’t pay what you owe. This IRS notice outlines your right to a hearing and your right to receive appeals consideration.

CP 298 – Final Notice Before Levy on Social Security Benefits

The IRS sends CP 298 to let you know that they intend to levy up to 15% of your Social Security benefits to repay your tax debt if you don’t respond within 30 days of the date on the notice.

CP 521 – Installment Agreement Reminder Notice

The IRS sends CP 521 as a reminder that your payment toward the installment agreement you set up with them is due. This IRS notice reminds you that interest, penalties, and fees will continue to accrue until you pay the tax debt in full.