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What Is an IRS CP53E Notice? How to Identify Scams and Protect Your Tax Refund
We want to make you aware of an increase in fraudulent IRS notices related to Form CP53E and provide guidance on how to properly identify and respond to these communications.
A CP53E notice is a legitimate IRS notice issued when a tax refund cannot be directly deposited and is unable to be completed. This can occur for several reasons, including incorrect or missing banking information, a rejected deposit, or an issue validating the account provided on the tax return. When a CP53E letter is received, the IRS requests that the taxpayer update their direct deposit information through their IRS Online Account within a 30-day window. If no action is taken, the IRS will generally issue the refund via paper check within about six weeks. It is important to note that the IRS does not allow representatives to update banking information on a taxpayer’s behalf through phone or other informal channels.
Lately, we’ve seen scammers take advantage of this situation by sending out fake CP53E notices in an attempt to collect sensitive financial information. Because anything related to a tax refund tends to get immediate attention, these messages are often written to create a sense of urgency that tends to push taxpayers to act quickly before taking the time to confirm whether the notice is in fact legitimate.
There are a few clear signs that a CP53E notice may not be legitimate. The IRS will not ask you to respond by email, text, or phone, or direct you to non-IRS websites. Be cautious of messages that include QR codes, request payment (especially via gift cards), or push you to act quickly without giving you time to verify the request. Also, keep in mind that IRS representatives cannot update your banking information on your behalf therefore any notice suggesting otherwise should be treated as suspicious.
Legitimate CP53E notices, by contrast, are issued exclusively through U.S. mail and will direct you to log in to your account at IRS.gov to complete any necessary updates. The notice will clearly outline the 30-day response period and explain the alternative process of issuing a paper check if no updates are made. The IRS does not include unsolicited links, request sensitive information through unverified methods, or initiate contact via email or text for matters of this nature.
If you receive a CP53E notice, avoid clicking on any links or following the instructions provided until you have confirmed that the notice is legitimate. Instead, navigate directly to IRS.gov and access your secure online account to confirm whether action is required. After updating your banking information, you can typically expect processing within a few business days and should continue to monitor your refund status through the IRS “Where’s My Refund?” tool.
Given the continued rise in IRS-related scams, we encourage all clients to remain vigilant when reviewing any tax-related correspondence. As a reminder, the IRS generally communicates through mailed notices and does not initiate contact via email, text, or social media for sensitive matters. Maintaining awareness of these evolving tactics is an important step in protecting your personal and financial information.
For additional details, please refer to the IRS webpage on CP53E notices at the link below:
https://www.irs.gov/individuals/understanding-your-cp53e-notice
Citations:
https://www.irs.gov/individuals/understanding-your-cp53e-notice