A bounced check can be instantly resubmitted a second time in many cases, which is good news for you. You thus need to get the money to the bank ASAP if your check was returned for nonsufficient funds (NSF). Sometimes the clearinghouse your bank uses will resubmit your check, even while the IRS itself won’t. Check with yours to find out if the check will submit a second time. The NSF penalty should be deferred if the payment does clear after being resubmitted.
You will need to mail a second check to the IRS immediately if your check doesn’t automatically resubmit. This check will need to include the penalty amount. Ensure you have sufficient funds and include the correct amount to avoid any further issues.
How is the penalty calculated?
if the amount of the check is $25 or less the penalty is the check amount
if the amount of the check is over $25 but less than $1250.01 the penalty is $25
if the amount of the check is over $1250 the penalty is 2% of the check amount.
there may also be interest for late payment, the iRS will bill you.
