What is an IRS CP136B Notice?

The IRS CP136B is a Federal Tax Deposit (FTD) Reminder Notice. It is sent to businesses to inform them of their required deposit schedule for Form 941 (Quarterly Employment Tax Return). This notice outlines whether you must deposit employment taxes on a monthly or semiweekly basis, based on your past filing history.

Why did I receive a CP136B notice?

You may receive a CP136B if:

• The IRS has reviewed your past payroll tax filings and determined your deposit frequency has changed.

• You are a new filer and the IRS is assigning your initial deposit schedule.

• Your total reported tax liability has increased or decreased, moving you from monthly to semiweekly deposits (or vice versa).

This notice doesn’t mean you did something wrong—it’s an instruction to help you stay compliant with deposit requirements.

What do I need to do?

The CP136B explains your new deposit frequency and the period it applies to. After receiving it, you must:

1. Review the deposit schedule stated in the notice.

2. Update your payroll or tax system to follow the required deposit frequency.

3. Make timely deposits to avoid late deposit penalties.

How TaxBandits helps with IRS CP136B notices

When you receive a CP136B, the first step is to upload the notice into your TaxBandits account. This keeps it securely stored and allows you to access guidance on what the notice means and how to follow your updated deposit schedule.

Plus, TaxBandits also supports the services that help you avoid/resolve CP136B:

• E-file Form 941 returns accurately with built-in validation.

• Smart Review checks help you avoid common employment tax reporting errors.