May 2026 – IRS Direct Deposit Issue (CP53E Notice)

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May 2026 – IRS Direct Deposit Issue (CP53E Notice)

OVERVIEW

The Internal Revenue Service has recently been sending CP53E notices to taxpayers. If you receive this notice, it does not mean your refund is lost but there are some important things to understand for updating.

If you had an overpayment to 2026 or balance due with your 2025 tax return, the IRS still appears to be sending out this notice requesting an update to direct deposit information. If you are not expecting a refund with your 2025 tax return, it is important to note that there is no further action with the IRS.

What is a CP53E Notice?

A CP53E notice may be issued when the IRS cannot complete your refund by direct deposit or when direct deposit information is missing and the refund is temporarily frozen pending taxpayer action.

Common reasons may include:

  • Incorrect routing or account number
  • Closed or inactive bank account
  • A mismatch between the account information and bank records
  • A bank rejection for security or processing reasons
  • Missing direct deposit information on the return

What Should You Do if You Receive a CP53E Notice?

If you receive a CP53E notice and you are expecting a refund from your 2025 tax return, you generally have 30 days to add or update your bank account information through your IRS Online Account at IRS.gov/Account.

We recommend logging in to your existing IRS Online Account or setting one up as soon as possible if needed.

Important points:

  • IRS employees cannot update your bank account information by phone or in person.
  • You generally have only one opportunity to add or update your bank account information through your online account.

If you are unable to update within the 30-day window the IRS will issue a paper check after 6 weeks and should be mailed to the address on record from your filed tax return.

Important Reminders

  • As a general note, the IRS will not call, text, or email you.
  • Always verify communications through official IRS channels or our office.

If you have received a CP53E notice and are unsure what to do next, we will be happy to help review your situation. Please reach out to our team with any questions.