Some taxpayers have recently received IRS Notice CP53E, a notice generally used when the IRS believes a taxpayer is due a refund but needs updated banking information before issuing the refund by direct deposit. The IRS says taxpayers who receive a valid CP53E notice generally have 30 days to update banking information through their IRS Online Account or select an exception that allows a paper check.
However, there is currently confusion surrounding these notices. The AICPA has reported that the IRS is aware some CP53E notices may have been sent in error, including situations where an overpayment was intended to be applied to 2026 estimated taxes or where the taxpayer actually has a balance due.
There are also known scams involving fake CP53E notices. Some fraudulent notices may include QR codes, links, or phone numbers designed to collect personal or banking information. Because legitimate IRS correspondence may also include QR codes, we recommend that clients do not scan a QR code or click any link in a notice until the notice has been verified.
The safest approach is to go directly to IRS.gov by typing the address into your browser and logging in to your IRS Online Account. Do not provide banking information through an unfamiliar website, text message, email, or phone number listed on a suspicious notice.
If you receive a CP53E notice and are unsure whether it is legitimate or whether action is required, please contact our office before responding. We can help review the notice and determine the appropriate next step.