IRS Letter 4838 – You Are a Client of a Payroll Service Provider


Your business’ payroll service provider has not made federal tax deposits and/or has not filed employment tax returns as required.

View notice image

Type of Notice: Late return

Most common tax problem area: Business unfiled returns

Other tax problem areas: Unpaid business taxes, Business tax penalties

Why you received IRS Letter 4838

  1. You use a payroll service provider (PSP) to process payroll, file employment tax returns and make federal tax deposits (FTD).
  2. The IRS determined that your PSP is not making federal tax deposits and/or not filing employment tax returns as required.
  3. The IRS sent Letter 4838 to advise you of the unpaid FTDs and/or unfiled employment tax returns. The letter provides IRS contact information and advises you to call the IRS to resolve any outstanding liabilities and to address the potential for penalty abatement due to reasonable cause. If no response is received, the IRS will continue with collection procedures.

Your options to address IRS Letter 4838

  1. File a return
  2. Dispute the penalties
  3. Make arrangements to pay

Notice deadline: None specified

Want more help?

See your local tax pro for a free consultation.

Get help from an IRS expert

H&R Block’s experts can solve any IRS problem, no matter how complex.

Make an appointment

Or call 855-536-6504

Related Information

Private: How to File Business Back Tax Returns with the IRS

Learn how to file your business back tax returns with the IRS and resolve any related tax issues, such as business back taxes and IRS penalties.

Private: How to Address IRS Business Tax Penalties

Understand the most common types of IRS business tax penalties for filing and paying late, and your possible options for requesting IRS penalty relief.

How to Avoid IRS Liens and Levies

Liens and levies are tools the IRS uses to collect back taxes. Learn more about each one -- and how to avoid tax liens and levies by working with the IRS.

Private: What To Do If You Can’t Pay Your Business Taxes

Learn how to request an IRS payment option, like an extension to pay or an IRS installment agreement, when your business owes taxes and can't pay.

Power of Attorney: It’s How Your Tax Pro Deals with the IRS For You

Learn the three main benefits of engaging a power of attorney to research your IRS account and resolve your tax problems. Get the facts from the experts at H&R Block.