IRS notices issued; refunds could take more than 10 weeks
Changes to the IRS refund system are causing delays for some taxpayers, with many receiving notices instead of their expected tax refunds.
The Internal Revenue Service has begun issuing CP53E notices to taxpayers who requested paper checks but failed to provide bank account information. More than 830,000 notices are expected to be sent by mid-March.
The CP53E notice informs taxpayers that their refunds are being delayed due to missing or incorrect banking information. As a result, many filers are receiving letters instead of refund payments and may face extended waiting periods.
The issue stems from the federal government’s push to phase out paper checks. Donald Trump signed an executive order directing agencies to reduce paper payments, prompting the IRS to expand direct deposit as the primary refund method.
Taxpayers who receive the notice must update or add their bank account information through their IRS online account within 30 days. If no action is taken, the IRS will issue a paper check after approximately six weeks, though the total delay could exceed 10 weeks, according to congressional concerns.
The changes are expected to disproportionately affect vulnerable populations, including unbanked households, seniors with limited digital access, and certain religious communities that avoid electronic financial systems. The Federal Deposit Insurance Corporation estimates that about 5.6 million U.S. households do not have bank accounts.
Democratic lawmakers have criticized the policy, arguing that it places an undue burden on taxpayers who rely on paper checks. The administration, however, maintains that reducing paper payments will lower costs, improve security, and increase efficiency.
Experts advise taxpayers to avoid delays by providing accurate banking information when filing and double-checking their returns before submission. Those who receive a CP53E notice are urged to promptly update their information online to expedite their refunds.
