Some taxpayers are receiving IRS Notice CP53E this filing season and are understandably unsure whether it is legitimate or whether they need to act. In many cases, the notice relates to a delayed refund because the IRS does not have usable direct deposit information. In some cases, however, the notice appears to have been issued in error. 

Here is what individual taxpayers should know. 

What Is IRS Notice CP53E? 

CP53E is an IRS notice sent when the IRS cannot issue a refund electronically because: 

• no direct deposit information was provided on the tax return or 
• the bank account information on file was invalid or rejected.  

More taxpayers are seeing this notice now because the IRS is moving away from paper refund checks and encouraging electronic payment methods instead. As part of that process, the IRS may send CP53E to ask taxpayers to provide bank information or explain why they cannot.  

If You Are Not Expecting a Refund 

Some taxpayers who are not actually due a refund have reportedly received CP53E by mistake. If that happens, do not panic. 

The best next step is to verify your status directly through your IRS Online Account or the IRS “Where’s My Refund?” tool. If those systems confirm that no refund is due and the notice does not apply to you, you can generally disregard the notice.  

Because IRS notices are often generated automatically, a processing issue or return adjustment may sometimes trigger a notice that does not match the taxpayer’s actual situation.  

If You Are Expecting a Refund 

If you are expecting a refund and receive CP53E, take these steps: 

1. Go directly to IRS.gov 

Do not scan QR codes or click a link printed in the notice. Instead type IRS.gov into your browser yourself and log in to your IRS Individual Online Account.  

2. Confirm whether the IRS needs information from you 

Use your Online Account or the Where’s My Refund? tool to confirm that your refund is being held because the IRS needs updated payment information.  

3. Update your bank information, if appropriate 

If the IRS is waiting for valid direct deposit details you can generally add or update your bank account information through your IRS Individual Online Account. Once updated the refund is typically released quickly.  

4. If you do not have a bank account, select an exception 

Taxpayers who do not have a bank account may be able to select the appropriate exception through their IRS Online Account so the IRS can issue a paper check sooner. If you cannot access your online account you may call the IRS for help entering an exception but not to provide bank account details.  

5. Know the timing 

CP53E generally gives taxpayers 30 days to respond. If no action is taken the IRS will generally issue a paper check about six weeks after the notice date assuming there are no other issues with the return.  

Watch for Scams 

CP53E generally include a QR code which can make a real notice look suspicious or make it easier for scammers to imitate.  

The safest approach is simple: 

• Do not scan QR codes from a tax notice. 
• Do not click embedded links from a letter, text or email. 
• Go directly to IRS.gov on your own. 
• Verify the notice through your IRS Online Account before taking action.  

A Key Red Flag: The IRS Will Not Take Your Bank Information by Phone or In Person 

This point is especially important: IRS employees will not request or accept your banking information by phone or in person for this purpose. If someone calls, texts or emails asking for your account and routing numbers that is a major warning sign.  

Bottom Line 

Receiving CP53E does not automatically mean something is wrong or that the notice is fake. But it does mean you should verify your situation carefully. 

• If you are not expecting a refund confirm that through official IRS tools and if the notice was sent in error you can generally ignore it.  
• If you are expecting a refund log in directly through IRS.gov, update your information if needed or choose the proper exception if you do not have a bank account.  
• In all cases, avoid QR codes, avoid embedded links and never provide bank information to someone who contacts you by phone, text or email.  

If you have questions about a notice you received, please contact your F+H advisor before responding so we can help you determine the safest next step.