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IRS Notice CP57

Insufficient Funds Penalty

Millions of taxpayers make payments to the IRS through an installment agreement. If you've missed one of these payments, it's best to respond quickly. Let the experts at H&R Block identify the best plan of action to ensure you stay in your agreement.

What happened?

  1. You're in an IRS payment installment agreement to pay a tax balance, and you make payments through an automatic bank draft.
  2. The IRS sent CP57 to let you know there were insufficient funds in your account to cover your scheduled payment.
  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.

How can H&R Block help?

  • We understand the timelines for IRS collection activity, and we'll make sure you know the deadlines, too. We can review those timelines with you to ensure you have sufficient funds available to cover the next payment.
  • Sometimes situations change, making it hard to pay. We'll look into your tax situation and review your best options for a payment agreement.

Have questions about a CP57 notice you received? Schedule a FREE consultation with an H&R Block tax professional today. We'll sit down to review your notice, answer your questions, and, if necessary, recommend next steps to get your issue resolved.

Ready to file?

You've got your forms. And we've got your back. There's only one thing left to do. Let's do this.

Calculators

So how much will you get (or owe) this year? That’s the million-dollar question. We happen to have three very useful calculators to help you estimate your refund or balance due.

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