We have recently seen an increase in taxpayers receiving IRS Notice CP53E—often unexpectedly. In several cases, individuals who were not expecting a refund have still received this notice, leading to understandable confusion.

While CP53E is a legitimate IRS notice, reports across the accounting profession suggest that some notices may be issued in error due to processing issues. Unfortunately, situations like this can also create opportunities for scammers to take advantage of uncertainty. Understanding what this notice is—and how to respond safely—can help you avoid unnecessary stress and protect your personal information.

What Is IRS Notice CP53E?

Under normal circumstances, the IRS issues Notice CP53E when a taxpayer is owed a refund but the IRS is unable to complete the direct deposit. This can occur if:

• Banking information is missing or incomplete
• The bank rejects the deposit
• The account on file has been closed or cannot be validated

The notice explains how the taxpayer may update banking information by logging into their official IRS Online Account. Taxpayers typically have 30 days to take action. If no update is made, the IRS generally issues a paper check by mail after several weeks.

Recently, however, a growing number of taxpayers have reported receiving CP53E notices even when no refund is due, suggesting a broader IRS processing issue rather than an individual filing problem.

Why This Has Increased Scam Risk

Any IRS notice involving refunds and bank account information tends to draw attention—and scammers are quick to exploit that. Fraudsters are circulating convincing fake CP53E notices designed to look official but that direct recipients to fraudulent websites or request sensitive personal and financial information.

These scam messages may:

• Include QR codes or shortened links
• Urge immediate action or create a sense of urgency
• Ask for banking details outside of the IRS website

While the real CP53E notice is mailed by the IRS, scammers may also attempt follow‑up contact by phone, email, or text—methods the IRS does not use to request this information.

What to Do If You Receive a CP53E Notice

If you receive a CP53E notice, a calm and cautious approach is best:

• Pause before taking action. If you were not expecting a refund, the notice may have been sent in error.
• Contact PKS or your tax advisor. Your accountant can help you review the notice and verify whether it is legitimate before you take any further action.
• Do not click links or scan QR codes included in the notice. These are commonly used in fraudulent communications.
• Go directly to IRS.gov by typing the address into your browser rather than using any embedded links.
• Review your filed tax return and IRS account to confirm whether a refund was issued or is pending.
• Be cautious of unsolicited outreach. The IRS does not contact taxpayers by phone, email, or text to request bank information.

When Action May Be Required

If you determine that you are legitimately owed a refund and the IRS could not complete the direct deposit, you can follow the instructions by logging into your official IRS Online Account and updating the information there.

If you confirm that no refund is due, no further action is typically required, and the notice can be disregarded.

Staying Vigilant

Whether issued in error or legitimately, the recent increase in CP53E notices serves as a reminder that verifying unexpected IRS correspondence is always worthwhile. Taking a moment to confirm details through official channels can help protect you from potential fraud—and from unnecessary concern.

If you receive an IRS notice and are unsure how to proceed, please contact your accountant or reach out through the button below. We are happy to help you evaluate the notice and determine appropriate next steps.