IRS Notice CP276B: incorrect deposits, penalty waived this time
Last updated · Reviewed for accuracy against IRS.gov guidance
CP276B tells a business that the IRS didn't receive the correct amount of timely tax deposits, which normally triggers a Federal Tax Deposit penalty, but the IRS decided not to charge it this time. No reply is required. It's a warning: review your deposit schedule and amounts so the next period doesn't draw a penalty.
Business tax relief assessment
What CP276B means
Per the IRS, CP276B says your deposits for the period were short or late, and that it normally charges a failure-to-deposit penalty in that situation but chose not to. You don't owe a deposit penalty because of this notice. The IRS recommends reviewing your records to see whether current payroll taxes are being paid on time and correcting your own copy of the return and liability schedule.
Check your deposit schedule
The IRS's CP276B page restates the rule: look at total tax liability for the four quarters before the quarter ending in September of last year (for quarterly filers). $50,000 or less means monthly deposits; more than $50,000 means semiweekly. Semiweekly liabilities for Saturday–Tuesday paydays are due the following Friday; Wednesday–Friday paydays, the following Wednesday. Holidays extend the date one business day each. See deposit schedules and CP136.
Why it still matters
A waived penalty this period doesn't mean future periods will be waived. Repeated deposit problems may also affect First Time Abate eligibility later and, if taxes go unpaid, can lead to a Trust Fund Recovery Penalty investigation. If a payroll provider makes your deposits, compare its reports with EFTPS.
Is the notice real?
Confirm a CP276B 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 there's a balance too
CP276B is about deposit timing; if the return also shows unpaid tax you'll get a separate balance-due notice. For short deposits identified against your return, see CP134B. If you can't pay, review payroll payment plans or take the business assessment.
See which relief programs you may qualify for
Answer 8 quick questions. Free, takes under 60 seconds, and won't affect your credit.
Start the calculatorFrequently asked questions
Do I have to reply to CP276B?
+
No. The IRS says no reply is required, but you should check why deposits were incorrect.
Does CP276B mean I owe money?
+
Not by itself. It says the IRS didn't charge a deposit penalty. Any unpaid tax is billed separately.
Can I authorize my accountant to call about it?
+
Yes. The IRS suggests Form 2848 to authorize a representative.
Will I get the penalty next time?
+
Possibly. The waiver applies to the period on the notice.
Does it count against First Time Abate?
+
A penalty that wasn't charged generally isn't a prior penalty, but check your transcript for the period.
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.