Missing Bank Information Can Delay an IRS Refund

The IRS is moving more federal payments toward electronic delivery, including tax refunds. For most taxpayers, direct deposit is already the normal way to receive a refund. The issue is what happens when a return does not include bank information, or when the bank rejects the deposit.

Beginning with the 2026 filing season for 2025 tax returns, the IRS is handling many missing or rejected direct deposit situations differently. Instead of automatically sending a paper refund check right away, the IRS may temporarily freeze the refund and issue Notice CP53E.

What IRS Notice CP53E means

Notice CP53E generally means the IRS could not issue the refund by direct deposit because the bank information was missing, invalid, or rejected. The notice gives the taxpayer 30 days to add or update direct deposit information through an IRS Online Account.

The notice is not a penalty. It does not create an additional tax charge, interest charge, or monetary sanction. The practical issue is timing: if the taxpayer does not act, the refund may take longer to arrive.

How to update bank information

Taxpayers who want the refund by direct deposit should use their IRS Online Account. The IRS says bank information cannot be updated by calling an IRS employee.

After signing in, the taxpayer should look for the CP53E-related notification and follow the prompts to add or correct the bank account. The Taxpayer Advocate Service describes the path as Profile > Banking > Information > Add Bank Account.

The bank account should be in the taxpayer's name, or be a joint account that includes the taxpayer. If the account cannot be validated, the IRS may issue a paper check instead.

What happens if no action is taken

If the taxpayer does not respond to Notice CP53E, IRS guidance says the IRS will issue a paper check after six weeks. That can create a meaningful delay compared with direct deposit.

The CP53E update process is generally available only once. If the taxpayer updates the bank information and the second direct deposit attempt is rejected, the IRS says it will issue a paper check rather than giving another online update opportunity.

Taxpayers who want a paper check

Some taxpayers do not have a bank account, cannot access an online account, or prefer a paper check. The Taxpayer Advocate Service says taxpayers who do not have direct deposit information or meet waiver criteria can request a paper check waiver through their online account.

If a taxpayer does not have access to an IRS Online Account, TAS says the taxpayer may need to call the main IRS phone number, 800-829-1040, and request a waiver with a customer service representative. The CP53E information line, 866-325-4066, is for recorded information and does not allow callers to enter banking information.

How to reduce the chance of a refund delay

Taxpayers expecting a refund should review direct deposit information carefully before filing. A small routing or account number error can create weeks of delay.

• Confirm the routing number and account number before filing.
• Make sure the bank account name matches the taxpayer or a joint account owner.
• Use an IRS Online Account to respond promptly if Notice CP53E is issued.
• Go directly to IRS.gov rather than using links from texts, emails, or unfamiliar messages.
• Use Where's My Refund? to monitor refund status after the return is filed.