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As many People see higher tax refunds this season, some are going through fee delays amid the IRS push to phase out paper checks.
Home Methods and Means Committee Democrats this week sent a letter to Treasury Secretary and appearing IRS Commissioner Scott Bessent, searching for solutions concerning the greater than 830,000 IRS notices despatched to filers about refund delays for paper fee requests.
The letter references a CP53E notice, which the company sends to request up to date banking info for refund funds by way of direct deposit. Recipients have 30 days to supply these particulars by way of an IRS online account, or the company will challenge a paper refund after six weeks.
“Having reviewed the IRS discover and referred to as the IRS telephone traces, we realized that there isn’t any easy course of for these taxpayers to request a right away launch of their refund by paper verify with out ready a minimum of 10 weeks,” wrote Reps. Danny Davis, D-In poor health., and Terri Sewell, D-Al., who every function rating subcommittee members.
The IRS in September introduced the paper refund check phase-out and inspired filers to begin making ready for the change.
The CP53E notices stem from an executive order signed by President Donald Trump in March 2025, which mandated authorities businesses transition from paper to digital funds.
Throughout the 2025 submitting season, roughly 94% of individual taxpayers opted for refunds by way of direct deposit by offering banking particulars on their returns, in keeping with the Nationwide Taxpayer Advocate. The remaining filers, about 10 million taxpayers, obtained refunds by way of paper verify.
“Many of those taxpayers obtain paper checks attributable to systemic, geographic or non secular elements,” nationwide taxpayer advocate Erin Collins wrote in a weblog publish up to date in late February.
This might embrace unbanked households, filers residing overseas, these with non secular constraints, victims of home abuse or people with disabilities, she wrote.
The change additionally “punishes those that do not wish to present direct deposit info,” mentioned Josh Youngblood, proprietor of The Youngblood Group, a Dallas-based tax agency. He’s additionally an enrolled agent, which is a tax license to apply earlier than the IRS.
Whereas Youngblood all the time recommends his purchasers use direct deposit for refunds, he mentioned some filers do not wish to ship these particulars to the IRS.
What to know for those who obtain a CP53E discover
When you’re due a refund and do not present direct deposit particulars together with your return this season, you’ll be able to count on a CP53E discover.
Filers cannot resolve the difficulty by calling the IRS. The one method to supply banking particulars is by way of an IRS on-line account, in keeping with the company.
When purchasers obtain the discover and wish to replace banking info, “we will not do it for them, even with the facility of lawyer,” Youngblood mentioned.
At all times double-check that info earlier than updating your account as a result of the IRS will ship a paper verify if the main points are incorrect and the financial institution rejects the deposit.
After updating your account, it is best to see refund particulars on-line inside two to 5 days, in keeping with the IRS. You can even use the Where’s My Refund software to verify the standing of your fee.
