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.

Related Topics

Related Resources

IRS Notice CP06 – Supporting Documentation Requested

Learn more about form CP06, why you received it, and how to handle an IRS CP06 notice with help from the tax experts at H&R Block.

What Happens After You Report Identity Theft to the IRS

Did someone file a fraudulent return in your name? Get the facts about reporting tax identity theft to the IRS and what you can expect after you report it.

IRS Notice CP518 – You Must File Your Tax Return

Learn about IRS Notice CP518, why you received it, and how to address unfiled tax returns. Get tax help from the tax experts at H&R Block.

Tax Dictionary – Tax Identity Theft

Learn about the two types of tax identity theft: refund fraud and employment-related theft. Get the IRS definition and read more insight from H&R Block.