IRS Issuing CP53E Notices After Direct Deposit Attempt Fails
During the last quarter of 2025, the US Department of Treasury and the IRS began the transition to electronic federal payments, which included phasing out paper tax refund checks. If you filed a 2025 tax return and are expecting a refund, the fastest and most secure method to make a payment or receive a refund is by providing valid bank account information. If you recently changed banks or entered the wrong account information when you filed your return, the IRS will send a CP53E notice that their attempt to use direct deposit for your tax refund failed.
The IRS provides the following information to update your banking information for direct deposit:
- Sign in or create an online account.
- Check your Notifications in your Account Home.
- Select the Add bank account notification.
(This option will only be present when a CP53E notice has been issued) - Follow the prompts to add your account details. Guidance is provided if you don’t have a bank account.
- Allow around 2-5 business days for your refund status to update in your online account.
Error Message
If you are unable to update your banking information and encounter systemic issues, be certain to read the message carefully and try again later.
For updates on your refund status, visit Where’s My Refund.
For more information, visit https://www.irs.gov/individuals/understanding-your-cp53e-notice
As always, should you have questions on this or other matters affecting you or your business, please call 215.675.8364 or email us to speak with a CPA today.
DISCLAIMER: All communications by Wouch, Maloney & Co., LLP intend to provide general information, as of the date of the communication, and may reference information from reputable sources. Although our firm has made every reasonable effort to ensure that the information provided is accurate, we make no warranties, expressed or implied, on the information provided. Please be aware that this is not a comprehensive analysis of the subject matter covered and is not intended to provide specific recommendations to you or your business with respect to the matters addressed.
