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If a cheque is dishonoured for any reason, the bank on which it is drawn must promptly return the cheque to the depositors (payees) bank, which will ultimately return it to the depositor.
How is the penalty calculated? When a check or other commercial payment instrument the IRS receives for payment of taxes doesnt clear the bank, a penalty of 2 percent of the amount of the check or other commercial payment instrument generally applies.
Dishonored checks are items deposited at a depository bank, but are returned to the State due to non-sufficient funds or other reasons preventing the bank from cashing the items.
(a) A drawer negotiating a check who knows or should know that payment of such check will be refused by the drawee bank either because the drawer has no account with such bank or because the drawer has insufficient funds on deposit with such bank shall be liable to the payee for damages, in addition to the face amount
The Dishonored Check Penalty applies if you dont have enough money in your bank account to cover the payment you made for the tax you owe. Your bank dishonors and returns your bad check or electronic payment and declares the amount unpaid.

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If a cheque is dishonoured for any reason, the bank on which it is drawn must promptly return the cheque to the depositors (payees) bank, which will ultimately return it to the depositor.
There is no embargo upon the payee to successively present a dishonored cheque during the period of its validity. There is no restriction regarding the no of times a cheque can be presented and that every subsequent representation and dishonor gives rise to fresh cause of action for filing complaint.
If a cheque is dishonoured The holder or payee can resubmit the cheque within three months of the date on it, if he believes it will be honoured the second time. However, if the cheque issuer fails to make a payment, then the payee has the right to prosecute the drawer legally.
Drivers License Problems include expired, invalid or stolen licenses. Too many checks The check writer has written too many checks during the risk period of a specific merchant. MICR code Issues with the magnetic ink character recognition code (unreadable, accounts, etc).
A dishonored cheque (or check or bank draft, according to local usage) has been presented for payment or deposited into a bank account but rejected or returned by the bank. Typical reasons include: Insufficient funds. Closed account. Improper, incomplete, or illegible drafting.

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