04/01/2026
Got an IRS Notice CP53E?
Due to a recent Executive Order 14247 the IRS changed direct deposit options that taxpayers now have available. The new direct deposit change will allow individual taxpayers to provide the IRS with a new or updated bank account to receive the tax refund via direct deposit if certain conditions are met including not providing direct deposit information. This is because the IRS is phasing out paper checks because of fraud issues, slow mail delivery, and the cost of printing and mailing millions of checks. Be aware that the next thing they could do is send refunds out via credit cards instead of paper checks.
The confusing part? The letter says "The IRS can't deposit your refund" but people are getting it even if they OWE money and sent a check as well as if you applied your refund next year.
Bottom line: You're getting this notice if the IRS doesn't have valid banking information on your 2025 tax return, regardless of whether you're getting a refund or not.
You can still receive your refund via check mailed to the address on file however because they have added this step it does mean that your check will be delayed by the additional time to process sometimes up to 10 weeks.
Here's what you need to do:
• You've got 30 days from the notice date to update your bank info online
• Don't call the IRS - their staff literally cannot update your banking information over the phone
• Go to IRS.gov/Account and do it yourself (it's the only way)
• If you ignore this, they'll eventually send a paper check, but it could take 10+ weeks
• You only get one shot to get your banking info right
This is happening to a lot of people right now, so don't panic. The IRS is just trying to get everyone set up for electronic payments moving forward.
You can also see the information on the IRS website and the frequently asked questions especially you change your mind and want to add direct deposit information.
https://www.irs.gov/individuals/understanding-your-cp53e-notice
