The IRS’s Notice CP53E is causing a lot of confusion for taxpayers who had balances due on their 2025 returns.
The notice asks taxpayers for their banking information so the IRS can issue a direct deposit refund. For those who expected to pay in this year, not only is the notice confusing, but it also seems like a scam. Experts think the surprise refunds are happening because the IRS recalculated and reduced underpayment penalties, usually related to disaster relief.
Taxpayers who expect a refund but didn’t provide banking info are also getting notices. This is related to the government moving away from paper checks and toward electronic payments.
If you’ve gotten an IRS Notice CP53E, create an account or log in to your IRS Individual Online Account so you can update your banking details. You’ll need to do so within 30 days of the notice date. If you don’t, the government will send you a check six weeks after the notice date. So, there could be a pretty long delay before you receive your refund.
Also, as with anything related to the IRS, scammers are circulating fraudulent versions of the notice. So, make sure you’re only using the official IRS.gov website to provide or update your information.
If you need help with your IRS Individual Online Account, please let us know.