IRS Freezes Refunds Over Missing Bank Information

Dear Client:

The IRS has changed the way it handles tax refunds when taxpayers fail to provide valid direct deposit information on their tax returns.

Beginning with 2025 tax returns filed during the 2026 filing season, the IRS generally will no longer automatically issue a paper refund check if your bank account information is missing or incorrect. Instead, the IRS may freeze the refund and send Notice CP53E.

If you receive a CP53E notice, you typically have 30 days to provide (or correct) your direct deposit information through your IRS online account. To do this, you may need to establish an online account and complete an identity verification process through ID.me.

If you do not respond within 30 days, the IRS should eventually issue a paper refund check, but the process may delay your refund for up to 10 weeks. In some cases, the IRS may also pay interest on delayed refunds.

Taxpayers who do not want to use direct deposit may contact the IRS to request a paper check.

To avoid unnecessary delays, we recommend verifying that your tax return includes accurate bank routing and account information and that the account name matches the name shown on your return.

If you want to discuss your tax refund, please contact us.

Sincerely,
Epperson CPA, PLLC