IRS Notice CP57 – Insufficient Funds Penalty

The IRS sends CP57 to notify you that the bank did not honor a draft on your account.

View notice CP57 image

Type of notice: Account information or change

Most common tax problem area: Return and account problems

Other tax problem areas: 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.

Your options to address IRS Notice CP57

  1. Make arrangements to pay
  2. Clear up an account error

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?

See your local tax pro for a free consultation.

Related Topics

Related Resources

IRS Notice LT26 – The IRS Still Hasn’t Received Your Tax Return

Learn more about notice LT26, why you received it, and how to handle an IRS LT26 notice with help from the tax experts at H&R Block.

IRS Letter 854C – Penalty Waiver or Abatement Disallowed

When the IRS denies your request for penalty relief, you still have options. Learn more about Letter 854C and how to handle it with help from H&R Block.

Tax Dictionary – IRS Payments

Learn about your options to pay your tax debt. Read the IRS definition and get more insight from the tax experts at H&R Block.

IRS Notice CP128 – The IRS Applied Your Overpayment and You Still Have a Balance Due

Learn more about notice CP128, why you received it, and how to handle an IRS CP128 notice with help from the tax experts at H&R Block.