IRS paper check changes trigger tax refund delays for many filers
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While many Americans are seeing higher tax refunds this season, some are facing payment delays due to pressure from the IRS to phase out paper checks.
House Ways and Means Committee Democrats this week sent a letter Treasury Secretary and Acting IRS Commissioner Scott Bessent is seeking answers about more than 830,000 IRS notices sent to filers about refund delays on paper payment requests.
One in the letter CP53E notificationTo request updated bank information for refund payments via direct deposit, the agency sent . Recipients have 30 days to provide these details through an IRS online account, or the agency will issue a paper refund after six weeks.
Reps. Danny Davis, D-Ill., who each served as ranking subcommittee members. “After reviewing the IRS notice and calling IRS phone lines, we learned that there is no simple process by which these taxpayers can request the immediate release of their refunds via paper check without waiting at least 10 weeks,” wrote Rep. and Terri Sewell, D-Al.
The IRS did not immediately respond to CNBC’s request for comment on the House Democrats’ letter.
The CP53E notices stem from an executive order signed by President Donald Trump in March 2025 that required government agencies to transition from paper to electronic payments.
Roughly in the 2025 application season 94% of individual taxpayers According to the National Taxpayer Advocate, they chose to issue refunds via direct deposit by providing their bank information on returns. The remaining approximately 10 million taxpayers received their refunds via paper check.
“Many of these taxpayers receive paper checks due to systemic, geographic or religious factors,” national taxpayer advocate Erin Collins wrote in a blog post updated in late February.
This could include unbanked households, those living abroad, those with religious restrictions, victims of domestic abuse or individuals with disabilities, he wrote.
Josh Youngblood, owner of The Youngblood Group, a Dallas-based tax firm, said the change “will also penalize those who don’t want to provide direct deposit information.” He is also a registered agent with a tax license to practice with the IRS.
While Youngblood always recommends direct deposit for refunds to his clients, he said some filers don’t want to send those details to the IRS.
What you need to know if you receive a CP53E notification
If you need a refund and you don’t provide direct deposit details on your return this season, you can expect a CP53E notification.
Filers cannot resolve the issue by calling the IRS. According to the agency, the only way to provide bank details is through an IRS online account.
When customers receive the notification and want to update their banking information, “we can’t do that for them, even if they have power of attorney,” Youngblood said.
Always double check this information before updating your account; because if the details are incorrect and the bank refuses to deposit, the IRS will send a paper check.
Once you update your account, you should see refund details online within two to five days, according to the IRS. You can also use: Where’s My Refund? Tool to check the status of your payment.
