IRS Notice CP134B: deposits don't match your return
Last updated · Reviewed for accuracy against IRS.gov guidance
CP134B is a balance-due notice telling a business that federal tax deposits credited to its account differ from the amount reported on its return, and asking for payment by the date shown. Often the cause is a missing or misapplied deposit. Compare EFTPS records with the notice; pay if it's right, or call if payments are missing.
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Why you received it
Per the IRS, CP134B alerts you to a discrepancy between deposits credited and the tax reported, and asks for payment by the pay-by date. Common reasons:
- A deposit was skipped or short.
- A deposit was applied to the wrong quarter or the wrong form (for example 940 instead of 941).
- The return reported more tax than was deposited.
- A deposit was made under a different EIN.
How to respond
- Agree: pay through your business tax account or EFTPS; otherwise use Direct Pay for business, or mail a check payable to United States Treasury with your EIN, form number and period.
- Payments missing: call the number on the notice with EFTPS acknowledgment numbers and bank records.
- Disagree: the IRS says to contact it at the number listed on the notice.
If you can't pay in full, the IRS notes you'll receive late payment or failure-to-deposit penalties, and points to Form 9465 for installment agreements.
Penalties attached
A shortfall can bring the failure-to-deposit penalty (2%–15%), the failure-to-pay penalty and interest at 7% a year. If the cause was a misapplied deposit, getting it moved usually eliminates both the balance and the penalty. Otherwise see payroll penalty abatement.
Is the notice real?
Confirm a CP134B is genuine before acting on it. Sign in to your IRS business tax account or request a business account transcript and check that the period and amount match. If you call, use the number printed on the notice only after confirming it matches the one IRS.gov lists for that notice. The IRS doesn't demand payment by gift card, cryptocurrency or wire transfer to an individual.
If the balance is real and you can't pay
Keep the current quarter's deposits on time, then request a payroll payment plan. Unpaid trust fund amounts can be assessed against responsible people, so consider designating payments. See also Form 941 balance due, or run the business assessment.
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Start the calculatorFrequently asked questions
Is CP134B a penalty notice?
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It's a balance-due notice. Penalties may be included or follow if the balance isn't paid.
What if I paid but the IRS doesn't show it?
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Call the number on the notice with proof such as the EFTPS acknowledgment number.
Can a deposit be moved to the right quarter?
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Yes. The IRS can reapply a misapplied deposit when you show where it belongs.
Where do I learn the deposit rules?
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The IRS points to Publication 15, Employer's Tax Guide.
Can I get a payment plan for a CP134B balance?
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Yes. The IRS references Form 9465 and online payment agreements.
Related topics
Sources
IRS figures on this page (rates, fees, thresholds) verified as of 2026-11-04. See our editorial policy.
TaxSettlementCalculator.com is not a tax firm, law firm, CPA, or government agency and is not affiliated with the IRS or any state tax agency. Estimates are for educational purposes only and are not tax, legal, or financial advice. Results vary based on individual circumstances, and no outcome is guaranteed. We connect users with independent tax relief professionals.