The IRS introduced CP53E notices in 2026 as part of Department of Treasury’s shift toward electronic refunds. Normally, the notice means the IRS approved a refund but could not complete direct deposit. This can occur for several reasons, including but not limited to:
- Invalid or outdated banking information
- A closed bank account
- A rejected electronic deposit
- Missing account verification
Taxpayers then have 30 days to log into their IRS Online Account and update their banking information.
The IRS published officially CP53E guidelines in January 2026 following the adoption of under Executive Order 14247. You can view these guidelines here: Understanding Your CP53E Notice.
What’s happening now?
Taxpayers have received CP53E notices even when they were not expecting a refund or when no direct deposit was requested at all.
While this notice is legitimate and part of the IRS’s updated refund procedure, recent reports suggest that some CP53E notices may have been issued in error—creating confusion for taxpayers and raising concerns regarding the legitimacy of these notices.
At RP&B CPAs, we want our clients to stay informed and avoid taking unnecessary action. Here’s what you need to know in the event you receive a CP53E notice from the IRS.
What seems to be causing the issue?
In some cases, these notices were triggered when taxpayers:
- Applied an overpayment to future estimated taxes
- Had no refund due
- Already received their refund
- Never entered direct deposit information in the first place
At this moment, it is speculated that the CP53E notices may have been automatically generated as part of the IRS’s new refund-processing system. However, no official IRS statement regarding the issue has been published yet.
What Should You Do If You Receive a CP53E Notice?
If you receive a CP53E notice, don’t panic. It is important to review the notice carefully and confirm its validity before submitting any banking information.
If you were expecting a refund:
You should:
- Log directly into your IRS Online Account by visiting the official IRS website.
- Confirm if there is an active CP53E action item on your account
- Verify your refund status before submitting any banking information
If you were not expecting a refund:
For example, if you:
- Applied your overpayment toward future estimated taxes
- Already received your refund
- Owed tax instead of receiving a refund
You should contact your tax advisor and verify your IRS account transcript before updating any banking information.
Be Alert for Scams
Unfortunately, scammers often move quickly when new IRS notices are introduced. If you receive a CP53E notice, avoid doing the following:
- Do not scan QR codes from unsolicited mail
- Do not click links from emails or text messages claiming to be from the IRS
- Always access your IRS account by typing http://www.irs.gov directly into your browser
The IRS contacts taxpayers only through mailed notices—not email, text, or social media.