IRS Notice CP57 – Insufficient Funds Penalty


The bank did not honor a draft on your account.

Type of notice: Account information or change

Likely next step: Address IRS return and account problems

Also see: IRS bill for unpaid taxes, IRS penalties

Why you received IRS Notice CP57

  1. You’re in an IRS installment agreement to pay a tax balance, and you make payments through an automatic bank draft.
  2. The IRS was unable to draft funds from your bank account because there were not sufficient funds in the account to cover the draft.
  3. The IRS will attempt to draft the account again on your next scheduled payment date. If there still aren’t enough funds in your account,
    the IRS will charge an insufficient funds penalty and your agreement will go into default status.

Notice deadline: N/A

If you miss the deadline: Although no deadline is given, you need to make your IRS payment as soon as possible to prevent your installment agreement from defaulting.

Want more help?

Your tax professional can deal with the IRS for you. Learn more about H&R Block’s Tax Audit & Notice Services. Or make an appointment for a free consultation with a local tax professional by calling 855-536-6504 or finding a local tax pro.

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

How to Handle IRS Tax Return and Account Problems

Learn about IRS return and account problems that you may encounter when filing taxes from the tax experts at H&R Block.

What To Do If You Can’t Pay Your Taxes

Learn about the different options when you can't pay or still owe money from a past return from the tax experts at H&R Block.

Don’t Pay an IRS Penalty Without Looking Into Penalty Relief

The IRS grants four types of penalty relief, but many taxpayers don't ever ask. Learn how to request penalty abatement from the IRS.

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.