Notice code 03

Notice code 03 — Failure to Deposit - We charged a penalty because it appears that you didn’t deposit the correct amo…

What this IRS notice code means, and what to check before you reply.

What to do next

Start with these steps before you reply.

03

Read the notice carefully and note any deadline. Gather returns, notices, and payment records. Book a free strategy session before responding if the amount is large, unclear, or collection language appears.

What the IRS language says

Failure to Deposit - We charged a penalty because it appears that you didn’t deposit the correct amounts of tax on time. We used your record of Tax Liability to determine where to apply your deposits. We applied your deposits in the date order we received them. We figured the penalty on any tax not deposited, deposited late, or not deposited in the correct amounts. For deposits due after 12/31/89, the penalty rate varies as follows: 2% - deposits made 1 to 5 days late 5% - deposits made 6 to 15 days late 10% - deposits made 16 days or more late, but on or before the 10th day after the date of the