IRS Notice CP57 – Insufficient Funds Penalty

Insufficient Funds Penalty

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.

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