Several clients have recently reported receiving IRS Notice CP53E despite not being due a refund. Although the inquiries may relate to legitimate IRS inquiries, it appears that many of these notices may have been issued in error. Nonetheless, taxpayers should remain vigilant.
If you receive a CP53E notice, or a similar communication, here is what you should know before taking any action.
What a CP53E Notice Means
A legitimate CP53E notice is issued when:
- A taxpayer is due a refund; and
- The IRS is unable to deposit the refund to the taxpayer’s bank account due to missing, incorrect, or rejected bank account information.
Genuine CP53E notices typically provide taxpayers with 30 days to update banking information through their IRS Online Account. If no action is taken within that timeframe, the IRS will generally issue a paper check within approximately six weeks.
IRS employees cannot update bank account information by phone or in person. Any required changes must be made by you using your IRS Online Account. Information about IRS Online Accounts can be accessed here.
Scam Opportunities
As with many new IRS initiatives, confusion over these CP53E notices means hunting season is open for the legions of fraudsters looking to prey upon innocent taxpayers. Anyone who calls, texts, or emails offering to “help” update your IRS online information is NOT from the IRS.
What Action to Take
The IRS appears to be experiencing a processing error. If you receive a CP53E notice but are not expecting a refund, or otherwise believe the notice was issued in error, consider the following steps:
- Do not update your banking information immediately.
- Avoid using the QR code on the notice. Instead, access your account by typing the official IRS website, www.irs.gov, directly into your browser. Search for “online account.” Alternatively, you can try calling the IRS directly. You can find IRS phone numbers, identity confirmation documentation required before the IRS will speak to you, and estimated wait times here.
- Review your tax return and IRS account to confirm whether a refund is shown as issued or pending.
- If no refund was requested, the notice can be ignored.
While these notices may be issued in error, taking a careful and informed approach can help avoid unnecessary action and reduce the risk of fraud. If you have questions about a CP53E notice or your specific situation, please contact your tax advisor before taking any action.
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