The IRS CP53E notice is a legitimate IRS notice that some taxpayers may receive when the IRS cannot complete a refund by direct deposit and needs the taxpayer to add or update bank account information through their IRS Online Account. Taxpayers who receive CP53E have 30 days from the date of the notice to update their information online, and IRS employees cannot make that change for them by phone. If the taxpayer does not respond, the IRS says it will issue a paper check after 6 weeks.
Because CP53E is a real IRS notice involving refunds and bank account information, scammers are using fake versions to try to steal taxpayers’ personal and financial data. The notice also comes as the IRS continues its broader shift toward electronic payments.
What Is the Real CP53E Notice?
The real IRS CP53E notice is issued when the IRS cannot process a taxpayer’s refund via direct deposit, typically because:
- No bank account information was provided
- The bank rejected the deposit
- The account could not be validated
If a taxpayer receives a real CP53E notice, the IRS instructs them to log in or create an account at IRS.gov/Account, update their bank information there, and allow 2 to 5 days for the refund information to update. The taxpayer can then check Where’s My Refund? for status updates.
Why Scammers Are Targeting the Real CP53E Notice
This notice is especially attractive to scammers because it involves two things that immediately get a taxpayer’s attention: a tax refund and a request related to bank account information. That makes a fake notice easier to believe and more likely to prompt a quick response.
How to Spot a Fake CP53E Notice
Watch for these warning signs:
- Includes a QR code
- Tells the taxpayer to respond by text message, email, or phone
- Directs the taxpayer to a site other than IRS.gov
- Requests payment by gift card, prepaid card, or another unusual method
- Uses language that feels unusually urgent, threatening, or inconsistent
- Claims an IRS employee can update bank information on the taxpayer’s behalf
One of the clearest red flags is any instruction to update bank information anywhere other than the taxpayer’s IRS Online Account. The IRS says taxpayers can update bank information for CP53E only through their online account, and IRS employees cannot do it for them.
What a Legitimate CP53E Looks Like
A real CP53E notice should:
- Arrive by U.S. mail
- Direct the taxpayer to update information through IRS.gov/Account
- State that IRS employees cannot update bank information for you
- Give the taxpayer 30 days to add or update bank information
- Explain that if the taxpayer does not respond, the IRS will issue a paper check after 6 weeks
- Refer the taxpayer to Where’s My Refund? to monitor refund status after updating their information
What You Should Do If You Receive a CP53E
- Do not scan QR codes or click links in the notice.
- Go directly to IRS.gov/Account by typing the address into your browser.
- Log in or create your IRS Online Account and update bank information only there.
- After updating your information, allow 2 to 5 days for the change to appear, then check Where’s My Refund? for status updates.
- If you are unsure whether the notice is real, rely only on your IRS Online Account for instructions.
Key Takeaway
The CP53E notice itself is real, but scammers are exploiting it. The safest approach is to ignore links, QR codes, and alternate contact instructions and use only the taxpayer’s IRS Online Account at IRS.gov to verify and respond.
If you have any questions or are interested in learning more, we are here to help. Please do not hesitate to reach out to discuss your specific situation.
This material has been prepared for general, informational purposes only and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. Should you require any such advice, please contact us directly. The information contained herein does not create, and your review or use of the information does not constitute, an accountant-client relationship.
