How to Respond to CP248 Notice from the IRS
Summary:
The CP248 Notice is issued by the IRS when a taxpayer fails to make a required federal tax deposit (FTD) through the Electronic Federal Tax Payment System (EFTPS). This notice serves as a reminder to comply with federal tax deposit requirements, outlining the steps to take to resolve the issue and avoid future penalties. Understanding the reasons behind the notice and taking corrective action can help taxpayers stay compliant and avoid unnecessary fines or interest charges.
Receiving an IRS notice can be unsettling, especially if it concerns a missed federal tax deposit. The CP248 Notice indicates that a taxpayer did not make a required federal tax deposit through the EFTPS. This notification is intended to alert taxpayers to their missed obligations and guide them on how to rectify the situation. In this article, we’ll cover what a CP248 Notice means, the steps to take when you receive one, and how to avoid future issues.
Compare Tax Preparation Services
Compare multiple vetted providers. Discover your best option.
What is a CP248 notice?
The CP248 Notice is sent by the IRS to notify taxpayers that they failed to make a federal tax deposit (FTD) through the Electronic Federal Tax Payment System (EFTPS), as required by law. Federal tax deposits include payments for income tax withholding, social security taxes, and other employment-related taxes that businesses are required to deposit periodically. When these deposits are not made correctly through EFTPS, the IRS issues a CP248 Notice to remind the taxpayer of their obligation and to encourage prompt correction of the error.
Pro tip
Always double-check your federal tax deposit details, including the EIN, tax type, and payment period, before submitting through EFTPS. This simple step can help you avoid common errors that trigger a CP248 Notice.
Reasons for receiving a CP248 notice
Failure to use EFTPS for federal tax deposits
One primary reason for receiving a CP248 Notice is failing to use EFTPS to make the required tax deposits. The IRS mandates that all federal tax deposits be made electronically using EFTPS, which is a free service that allows taxpayers to pay their federal taxes safely and securely. If the payment is made through another method, such as by check or cash, the IRS will issue a CP248 Notice.
Missed or late tax deposit
Another reason for the CP248 Notice is making a tax deposit late or missing a deposit altogether. Taxpayers are required to make deposits according to specific schedules, such as semi-weekly, monthly, or quarterly, depending on the amount of tax liability. Missing these deadlines can trigger the notice and potentially result in penalties.
Incorrect payment details
Even if the payment is made through EFTPS, errors such as entering the wrong Employer Identification Number (EIN), tax type, or tax period can cause the deposit to be incorrectly recorded. When this happens, the IRS may send a CP248 Notice to address the discrepancy.
Struggling with IRS notices? If you’ve received an IRS letter and aren’t sure how to handle it, you might want to explore professional tax relief options. Optima Tax Relief has helped thousands of people resolve their tax issues and get back on track with the IRS. Learn more about how they can assist you with your situation.
Steps to take when you receive a CP248 notice
1. Review your tax records
The first step is to check your tax records and confirm the deposits you made during the tax period. Verify that the payments match the amounts required and were made according to the correct schedule.
2. Determine the cause of the issue
Identify why your federal tax deposits were not made correctly. This may involve checking whether you used the correct payment method (EFTPS) or confirming that the deposit details (EIN, tax type, etc.) were accurate.
3. Make future deposits electronically
Ensure that all future federal tax deposits are made through EFTPS to comply with IRS requirements. The EFTPS system is not only free but also provides instant confirmation of payment, which helps avoid future discrepancies.
4. Respond promptly if additional information is required
If the CP248 Notice requests any documentation or additional information, respond as soon as possible to prevent further complications or penalties. The notice will specify what actions need to be taken to resolve the issue.
Understanding the Electronic Federal Tax Payment System (EFTPS)
What is EFTPS?
EFTPS is a free online payment system offered by the U.S. Department of the Treasury. It allows taxpayers, both businesses and individuals, to pay federal taxes electronically. The system is available 24/7, providing a convenient and secure method for making tax payments.
Benefits of using EFTPS
- Convenience: Tax payments can be scheduled in advance, and the system is accessible any time.
- Security: EFTPS provides a secure platform for tax payments, reducing the risk of fraud or errors.
- Accuracy: Instant confirmation and detailed records of all transactions help ensure that payments are correctly applied.
- Cost-effective: EFTPS is free to use, unlike some third-party payment services that may charge fees.
Pro tip
Set up automated payment reminders or schedule your federal tax deposits in advance with EFTPS. This ensures you never miss a deadline and helps you stay compliant with IRS requirements.
How to enroll in EFTPS
If you have not yet enrolled in EFTPS, you can sign up online at the EFTPS website. For businesses, enrollment is often pre-activated when applying for an Employer Identification Number (EIN). If you did not receive your EFTPS PIN or need to activate your account, you can do so by calling the EFTPS customer service number.
Potential penalties for failing to make federal tax deposits correctly
Failing to make federal tax deposits through EFTPS or missing deposit deadlines can result in penalties, including:
- Failure-to-deposit penalty: The IRS may impose penalties for missing, late, or insufficient deposits. These penalties can range from 2% to 15% of the unpaid amount, depending on how long the deposit is overdue.
- Interest charges: In addition to penalties, interest may accrue on the unpaid tax amount from the due date until the date of payment.
- Additional compliance actions: If the issue remains unresolved, the IRS may take further actions such as levying assets or garnishing wages to collect the owed taxes.
How to avoid future CP248 notices
Use EFTPS for all federal tax payments
Always use the EFTPS system to make your federal tax deposits. This ensures that payments are recorded correctly and timely, which helps you avoid future notices.
Verify payment details before submitting
Double-check the information you enter when making a payment through EFTPS, such as the EIN, tax period, and tax type. Mistakes in these details can lead to processing errors and potential notices from the IRS.
Set up payment reminders
Consider setting up payment reminders or scheduling payments in advance to ensure that deposits are made on time. EFTPS allows taxpayers to schedule payments up to 365 days in advance.
Pro tip
If you receive a CP248 Notice, don’t hesitate to contact a tax professional for guidance. A CPA or tax attorney can help you understand the notice, resolve the issue, and potentially avoid penalties.
Further support options for resolving CP248 notices
If you’re struggling to resolve a CP248 Notice, you can seek assistance from the following resources:
- Certified tax professionals: Consulting with a CPA or tax attorney can help you navigate the complexities of federal tax deposits and ensure compliance.
- The IRS website: Visit the IRS website for information on how to correct federal tax deposit errors.
- Local IRS office or Taxpayer Advocate Service: If you require additional support, you can contact your local IRS office or the Taxpayer Advocate Service for guidance.
Looking for the best way to reduce your tax burden? We’ve compiled a list of the Best Tax Relief Companies to help you navigate tax challenges and save money. Click here to discover trusted experts who can assist you with tax resolution, IRS negotiations, and more!
Frequently asked questions
What should I do if I disagree with the CP248 notice?
If you believe the CP248 Notice was sent in error or disagree with the information it contains, you should contact the IRS immediately. You can call the number provided on the notice to discuss the issue with an IRS representative. Be prepared to provide documentation, such as proof of payment, to support your case. If the notice cannot be resolved through a phone call, you may need to submit a written request for reconsideration, including copies of your records showing that the deposits were made correctly.
Can I resolve a CP248 notice online?
The IRS does not currently offer an online resolution option specifically for CP248 Notices. However, you can access the EFTPS system online to review your payment history, ensure all payments were made correctly, and schedule future payments. For resolving the notice, you may need to respond by mail or phone using the contact details provided on the notice itself.
How long do I have to respond to a CP248 notice?
The timeframe for responding to a CP248 Notice is usually indicated on the notice itself. Generally, it is advisable to respond as soon as possible to avoid additional penalties or interest charges. Even if the notice does not specify a deadline, taking prompt action can help resolve the issue more quickly and minimize any potential consequences.
What if I can’t afford to make the required tax deposits?
If you are experiencing financial difficulties and cannot afford to make the required tax deposits, you should still contact the IRS to discuss your situation. The IRS may offer payment plans or other options to help manage your tax obligations. Additionally, consider consulting a tax professional for guidance on how to handle federal tax deposit requirements during financial hardship.
Does a CP248 notice mean I owe additional taxes?
A CP248 Notice does not necessarily indicate that you owe additional taxes. Instead, it serves as a reminder that a required federal tax deposit was either missed or not made correctly through EFTPS. However, if the missed deposit is not corrected, it could lead to penalties or interest charges, which would increase the amount owed. Ensuring compliance with federal tax deposit requirements can help you avoid these extra costs.
Need help understanding other IRS letters and notices? Visit our comprehensive guide to IRS Letters and Notices or search for the document you received in the table below.
| CP01 | The IRS verified your claim of identity theft and will monitor your account. |
| CP01H | The IRS received a tax return with a social security number that belongs to a dead person. |
| CP02H | Money is due on an amended return based on a grant received due to Hurricane Katrina, Rita, or Wilma. |
| CP03C | You received the First-Time Homebuyer Credit for a house you purchased. |
| CP04 | You may be eligible for tax deferment because either you or a spouse served in a combat zone, a qualified contingency operation, or a hazardous duty station during the tax year specified on your notice. |
| CP08 | You may be entitled to additional money due to the Additional Child Tax Credit. |
| CP10 | Your tax return changed due to a miscalculation, and the refund you wanted to apply to an estimated tax payment has changed. |
| CP10A | Your tax return changed due to a miscalculation of the Earned Income Credit, and the refund you wanted to apply to an estimated tax payment has changed. |
| CP11 | You owe money because the IRS amended your return due to a miscalculation. |
| CP11A | Your tax return changed due to a miscalculation of the Earned Income Credit, and the refund you wanted to apply to an estimated tax payment also changed. |
| CP11M | Your tax return changed due to a miscalculation of the Making Work Pay and Government Retiree Credit, and the refund you wanted to apply to an estimated tax payment has changed. |
| CP12 | You are due a bigger refund because the IRS corrected one or more mistakes on your tax return. |
| CP12A | The IRS made changes to correct the Earned Income Credit (EIC) claimed on your tax return. |
| CP12E or CP12F | The IRS corrected a miscalculation on your return. |
| CP12M | The IRS made changes to the computation of the Making Work Pay and/or Government Retiree Credits on your return. |
| CP12R | The IRS made changes to the computation of the Rebate Recovery Credit on your return. |
| CP13 | The IRS made changes to your return due to a miscalculation. There is no refund or amount due. Your balance is zero. |
| CP13A | The IRS made changes to your return due to a miscalculation of the Earned Income Credit. There is no refund or amount due. Your balance is zero. |
| CP13M | The IRS made changes to your return due to a miscalculation of the Making Work Pay credit or the Government Retiree Credit. There is no refund or amount due. Your balance is zero. |
| CP13R | The IRS made changes to your return due to a miscalculation of the Recovery Rebate Credit. There is no refund or amount due. Your balance is zero. |
| CP14 | You owe money on unpaid taxes. |
| CP16 | The IRS made changes to your return due to a miscalculation. The refund you were due was applied to other tax debts. |
| CP21A | You owe money due to the changes you requested that the IRS make on your tax returns. |
| CP21B | You are due a refund due to the changes you requested that the IRS make on your tax returns. The money should arrive within 2 to 3 weeks. |
| CP21C | The IRS made the requested changes to your tax return. You will not receive a refund, and there is no tax due. Your balance is zero. |
| CP21E | As a result of your recent audit, the IRS made changes to your tax return, and you owe money as a result of those changes. |
| CP21I | The IRS made changes to your tax return relating to the Individual Retirement Arrangement (IRA) taxes. You owe money due to the changes. |
| CP22A | The IRS made the changes you requested, and you owe money as a result. |
| CP22E | As a result of your recent audit, the IRS changed your tax return, and you now owe money. |
| CP22I | The IRS made changes to your tax return relating to the Individual Retirement Arrangement (IRA) taxes. You owe money due to the changes. |
| CP23 | The IRS changed your return because there was a difference between the amount of estimated tax payments listed on your tax return and the amount actually posted to your account. You owe taxes due to these changes. |
| CP24 | The IRS changed your return because there was a difference between the amount of estimated tax payments listed on your tax return and the amount actually posted to your account. This resulted in an overpayment of estimated taxes. |
| CP24E | The IRS changed your return because there was a difference between the amount of estimated tax payments listed on your tax return and the amount actually posted to your account. This resulted in an overpayment of estimated taxes. |
| CP25 | The IRS changed your return because there was a difference between the amount of estimated tax payments listed on your tax return and the amount actually posted to your account. You are not due a refund, nor do you owe any money. Your balance is zero. |
| CP31 | You need to update your address because your refund check was returned to the IRS. |
| CP45 | The IRS was unable to apply your overpayment to your estimated tax as you requested. |
| CP49 | The IRS used all or part of your refund to pay a tax debt. |
| CP53 | Your refund check will be sent by mail because the IRS can’t provide your refund through direct deposit. |
| CP57 | The bank declined your payment, so the IRS was unable to draft funds from your bank account. |
| CP71 | A reminder of the amount you owe in tax, penalty, and interest. |
| CP71A | A reminder of the amount you owe in tax, penalty, and interest. |
| CP71C | A reminder of the amount you owe in tax, penalty, and interest. |
| CP71D | A reminder of the amount you owe in tax, penalty, and interest. |
| CP88 | The IRS is holding your refund because you haven't filed one or more tax returns, and it believes you will owe tax. |
| CP90 | The IRS is notifying you of its intent to levy certain assets for unpaid taxes. You have the right to dispute the levy in a Collection Due Process hearing. |
| CP91 | The IRS will levy up to 15% of your social security benefits for unpaid taxes. |
| CP120 | The IRS needs documentation of your tax-exempt status. |
| CP120A | Your organization’s tax-exempt status has been revoked because it failed to file a Form 990 series return for three consecutive years. |
| CP130 | You may no longer need to pay the Alternative Minimum Tax (AMT) because your tax return filing requirements changed. |
| CP152 | The IRS received your return. |
| CP153 | The IRS will send your refund by mail because your direct deposit did not go through. |
| CP161 | You have an unpaid balance due to the IRS. |
| CP166 | Your monthly payment to the IRS did not go through due to insufficient funds in your bank account. |
| CP178 | You may no longer owe excise tax because your tax return filing requirements changed. |
| CP231 | You need to update your address because your refund was returned to the IRS. |
| CP259 | You did not file the business tax return identified in the notice. |
| CP259A | You should have filed these forms but did not – Form 990/990-EZ, Return of Organization Exempt From Income Tax, or Form 990-N (e-Postcard). |
| CP259B | The IRS requires you to file these forms but did not – Form 990-PF, Return of Private Foundation or Section 4947(a)(1) Nonexempt Charitable Trust Treated as a Private Foundation. |
| CP259C | The IRS believes that you are a private foundation, but did not file the required Form 990-PF, Return of Private Foundation or Section 4947(a)(1) Nonexempt Charitable Trust Treated as a Private Foundation. |
| CP259D | You must file this form, but you did not – Form 990-T, Exempt Organization Business Income Tax Return. |
| CP259E | You should have filed this form, but you did not – Form 990-N (e-Postcard) or Form 990/990-EZ, Return of Organization Exempt From Income Tax. |
| CP259F | The IRS requires you to file this form but did not – Form 5227, Split-Interest Trust Information Return. |
| CP259G | The IRS requires you to file this form, but you didn’t – Form 1120-POL, U.S. Income Tax Return for Certain Political Organizations. |
| CP259H | As a tax-exempt political organization, you must file this form, but you did not – Form 990/990-EZ, Return of Organization Exempt From Income Tax. |
| CP276A | You submitted your tax liability schedule incorrectly. The IRS typically charges a Federal Tax Deposit (FTD) penalty for this but did not this time. |
| CP276B | The IRS did not receive the correct amount of tax deposits. It normally charges a Federal Tax Deposit (FTD) penalty but did not this time. |
| CP297 | The IRS is notifying you of its intent to levy certain assets for unpaid taxes. You have the right to dispute the levy at a Collection Due Process hearing. |
| CP297A | The IRS has levied your assets for unpaid taxes. You have the right to dispute the levy at a Collection Due Process hearing. |
| CP298 | The IRS notifying you of its intent to levy up to 15% of your social security benefits for unpaid taxes. |
| CP501 | You have a balance due on one of your tax accounts. |
| CP503 | You have an unpaid balance on one of your accounts, and the IRS has not heard from you. |
| CP504 | You have an unpaid amount due on your account. If you do not pay immediately, the IRS will levy your state income tax refund to apply it to the amount you owe. |
| CP504B | You have an unpaid amount due on your account. If you do not pay immediately, the IRS will levy certain property or rights to property to apply it to the amount you owe. |
| CP521 | A reminder that you have an installment agreement payment due. |
| CP523 | You have defaulted on your payment agreement. Therefore the IRS is terminating the agreement and will levy your assets. |
| CP601 | Usted tiene un saldo pendiente de pago (dinero que le debe al IRS) en una de sus cuentas contributivas. |
| CP603 | No hemos recibido respuesta de parte de usted y todavía tiene un saldo sin pagar en una de sus cuentas contributivas. |
| CP604 | Usted tiene un saldo sin pagar en su cuenta. De no pagar esta cantidad inmediatemente, el IRS embargará cualquier reembolso de impuestos estatales al que tenga derecho y aplicarlo al pago de su deuda. |
| CP604B | Usted tiene un saldo sin pagar en su cuenta. De no pagar esta cantidad inmediatemente, el IRS embargará ciertas propiedades o derechos de propiedad y lo aplicará al pago de su deuda. |
| CP621 | Este aviso es para notificarle que usted tiene un plan de pagos a plazos vencido. Por favor, envíe el pago inmediatamente. |
| CP623 | Este aviso es para informarle nuestra intención de cancelar su plan de pagos a plazos y confiscar (embargar) sus bienes. Usted incumplió en su acuerdo. |
| CP711 | Nosotros realizamos cambios a su planilla debido a que entendemos que hubo un cálculo erróneo. Como resultado de estos cambios, usted adeuda dinero por sus contribuciones. |
| CP721 | Hicimos el(los) cambio(s) que usted solicitó a su declaración de impuestos para el año tributario que aparece en su aviso. Como resultado de éste(estos) cambio(s) usted debe dinero en sus impuestos. |
| CP722 | Hicimos el(los) cambio(s) que usted solicitó a su declaración de impuestos para el año tributario que aparece en su aviso. Como resultado de éste(estos) cambio(s) usted debe dinero en sus impuestos. |
| CP771 | Usted recibió este aviso para recordarle sobre la cantidad que adeuda en contribuciones, multas e intereses. |
| CP772 | Usted recibió este aviso para recordarle sobre la cantidad que adeuda en contribuciones, multas e intereses. |
| CP773 | Usted recibió este aviso para recordarle sobre la cantidad que adeuda en contribuciones, multas e intereses. |
| CP774 | Usted recibió este aviso para recordarle sobre la cantidad que adeuda en contribuciones, multas e intereses. |
| CP959 | Usted no radicó su planilla de contribución de negocios identificada en este aviso. |
| CP2000 | The income or payment information on file doesn’t match your tax return. The discrepancy may result in an increase or decrease in your tax due. |
| CP3219A | The IRS has received information that is different from what you reported on your tax return. This may result in an increase or decrease in your tax. |
| CP3219N | The IRS didn’t receive your tax return, so it calculated your return based on the information received from employers, financial institutions, and others. If you want to challenge the proposed tax, you have 90 days from the date of this notice. If you are outside the country, you have 150 days. |
| Letter 0012C | The IRS needs additional information to process your tax return. |
| Letter 0484C | The IRS wants a completed |
| Letter 0525 | Updates you on proposed changes after an IRS examination. Any changes are explained and details the refund due or taxes owed. |
| Letter 531 | IRS Notice of Deficiency. The information the IRS received about you was different from what you reported on your return. |
| Letter 0668D(LP 68) | The IRS released their levy. |
| Letter 0549C | Your tax bill was paid. |
| Letter 0681C | The IRS accepted your payment proposal. However, this is not a formal Installment Agreement. |
| Letter 0757C | You did not adhere to the terms of your Installment Agreement. |
| Letter LT 11 | The IRS plans to seize your property or rights to property. |
| Letter 1058 | The IRS has not received your payment. It plans to seize your property or rights to property. |
| Letter 1615 (LT 18) | You must respond to the IRS within 10 days of this notice regarding past due tax returns. |
| Letter 1737 (LT 27) | Complete and sign Form 433F, Collection Information Statement. |
| Letter 1961C | Your application for a Direct Debit Installment Agreement was declined. It explains why and what you need to do to qualify. |
| Letter 1962C | Your application for a |
| Letter 2050 (LT 16) | The IRS is trying to collect unpaid taxes from you from returns that have been filed or from returns that have not been filed. |
| Letter 2257C | The IRS is providing the payoff amount that you requested. |
| Letter 226-J | An IRS letter to large employers notifying them that they may be liable for an Employer Shared Responsibility Payment (ESRP). |
| Letter 2271C | A request for an Installment Agreement has been approved. It explains the fees and how to qualify for a Low Income Fee Reduction. The letter may also request missing information. |
| Letter 2272C | An IRS letter explaining why your request to pay the balance due in installments was declined. |
| Letter 2273C | A confirmation letter of your request to pay the balance due in installments. It contained the amount to pay, fees charged, and where to send payment. Instructions on how to apply for the Low Income Fee Reduction included. |
| Letter 2318C | A response to a request to pay taxes due to payroll deductions. It also explains the fees that are charged. |
| Letter 2357C | The IRS is admitting that it did not send you the balance due notices that it should have. |
| Letter 2603C | The IRS accepted your installment agreement. The IRS will file a Notice of Federal Tax Lien on your personal property. |
| Letter 2604C | The IRS has accepted your request for installment payments. This IRS letter provides the monthly payment, the address where to send it, and the fees charged. The letter also provides instructions on how to apply for the Low Income Fee Reduction. |
| Letter 2761C | The IRS is requesting your combat zone service dates to ensure that it provides you with the special provisions and protection of the combat zone deferment. Copies of military orders or other documentation to support your time served may be requested. Civilians working in support of the Armed Forces may be required to provide a Letter of Authorization or a letter from their employer. |
| Letter 2789C | An annual reminder notice, as required by law, of the balance due to the IRS. It explains that penalties and interest continue to accrue until the balance is fully paid. |
| Letter 2840C | Confirms your Installment Agreement request and includes the payment amount and due date. This IRS letter explains the fees charged for paying monthly and explains how to apply for the Low Income Fee Reduction (if you qualify). |
| Letter 3030C | Provides an explanation of the tax, penalty, and interest still due on your account. |
| Letter 3127C | A confirmation of your request to make a change to your Installment Agreement. This IRS letter explains the fees for the change. Changes can be to the payment amount or due date, or it can include additional liabilities. |
| Letter 3174 | A reminder of taxes due after the IRS has sent a Notice of Intent to Levy. |
| Letter 3217C | The IRS has accepted your request to pay the balance in installments. This IRS letter provides your payment amount, the due date, and fees charged. The letter also provides instructions on applying for the Low Income Fee Reduction (if you qualify). |
| Letter 3228 (LT 39) | A request to pay the balance due within 10 days using the envelope provided. |
| Letter 3500 | The IRS has received your documents, and it needs additional time to review them. |
| Letter 3572 | Your Federal Income Tax Return has been selected for examination. The IRS auditor requests that you call to schedule an audit appointment. |
| Letter 4883C | The IRS received your federal income tax return but needs more information to verify your identity in order to process your tax return accurately. |
| Letter 4903 (LT 26) | You must file your tax returns immediately. The IRS has previously contacted you, but it did not receive a response. |
| Letter LP 47 | The IRS is trying to locate the person identified in the letter and is requesting that you provide their new address. |
| Letter LP 59 | The IRS has not received a response to the notice of levy it previously sent. |
| Audit Letter 2205 | The IRS manages audits either by mail or through an in-person interview to review your records. The interview may be at an IRS office (office audit) or the taxpayer’s home, place of business, or accountant’s office (field audit). |
| Letter 915 | You recently underwent an audit, and the IRS informs you that you now owe taxes. |
Key takeaways
- The CP248 Notice is issued when the IRS identifies a missed or incorrect federal tax deposit.
- Ensure all federal tax deposits are made through EFTPS to comply with IRS requirements.
- Penalties can apply for failing to make deposits correctly or on time.
- Reviewing your tax records and responding promptly can help resolve the notice and avoid future issues.
Share this post:
Table of Contents