More than 830,000 taxpayers have received notices this filing season telling them their refunds will be delayed as the IRS moves away from paper checks — a shift that could leave people without bank accounts or those who decline to share banking data waiting for weeks. Lawmakers are pressing Treasury and the IRS for answers about how the transition will affect vulnerable filers and what options exist to speed up payments.
House Ways and Means Committee Democrats this week asked Scott Bessent — who is serving as acting Treasury secretary and acting head of the IRS — to explain a surge in CP53E notices, which request updated banking information so refunds can be sent by electronic transfer. The outreach follows reports that the agency has mailed the notices to more than 830,000 taxpayers this season.
The notices are tied to a March 2025 executive order that directed federal agencies to move away from paper payments and push recipients toward electronic methods. The IRS announced last fall that it would phase out paper refund checks and urged taxpayers to provide bank account details on their returns.
So far this filing season, about 94% of individual filers chose to receive refunds by direct deposit, according to the National Taxpayer Advocate’s office. That leaves roughly 10 million people who have historically received paper checks — many of whom face practical or personal reasons for not providing bank information.
National Taxpayer Advocate Erin Collins has flagged groups disproportionately affected by the change: the unbanked, people living abroad, some religious communities, domestic abuse survivors and those with certain disabilities. Advocates and tax professionals warn the policy shift could create extra obstacles for these taxpayers.
How the CP53E notice works and why delays happen
The CP53E tells filers the IRS needs a bank account number and routing number to deposit their refund. Recipients typically have 30 days to submit the information through an IRS online account. If no valid banking details are provided within that window, the agency will convert the payment into a paper check — but that process can add weeks to the wait.
Tax professionals who represent clients say phone calls to the IRS won’t resolve the CP53E issue. The agency requires that updated banking information be entered through the taxpayer’s online account, and practitioners cannot submit it on behalf of a client even with a power of attorney.
Some preparers worry this creates practical problems. “For filers who won’t or can’t give bank details, the only fallback is a paper check — and getting one may take substantially longer than before,” said a tax practitioner familiar with the new procedures.
| Action or status | Typical timeline |
|---|---|
| CP53E notice issued | Immediately after return is flagged for missing bank info |
| Taxpayer window to respond via IRS online account | 30 days |
| Paper check issued if no valid deposit info | About six weeks after notice (additional mailing time applies) |
| Minimum wait reported to request an immediate paper check | At least 10 weeks, according to House committee members’ inquiry |
Practical steps if you get a CP53E
If you receive one of these notices, here’s what to know and do right away.
- Set up or sign into an IRS online account and update your direct deposit details within 30 days.
- If you enter incorrect bank information and the deposit is rejected, the IRS will revert to sending a paper check, which can add delay.
- Tax professionals cannot submit banking updates on a client’s behalf using power of attorney; the taxpayer must do it themselves.
- Check your status using the IRS Where’s My Refund tool; the agency says updates can appear in two to five days after you change account details.
For people who do not have bank accounts or who refuse to provide account numbers, the transition raises real-world concerns. Mail delivery problems, living overseas and safety issues for domestic abuse survivors are among the reasons some filers prefer paper checks — concerns that advocates say require closer attention as the federal government reduces paper payments.
Lawmakers have asked the Treasury and the IRS to explain how they will address those hardships and how taxpayers can request faster access to their refunds when a CP53E is issued. For now, the only surefire way to avoid a CP53E-related delay is to provide valid electronic deposit information when filing.
As the administration continues rolling out the electronic-payments policy, the immediate stakes are logistical and personal: delayed refunds can affect everyday bills and cash flow, especially for those with limited banking options. Taxpayers who think they might receive a CP53E should act quickly and monitor the IRS online account for updates.
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