IRS paper check changes trigger tax refund delays for more than 830,000 filers
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As many Americans see higher tax refunds this season, some are facing payment delays amid the IRS push to phase out paper checks.
House Ways and Means Committee Democrats this week sent a letter to Treasury Secretary and acting IRS Commissioner Scott Bessent, seeking answers about the more than 830,000 IRS notices sent to filers about refund delays for paper payment requests.
The letter references a CP53E notice, which the agency sends to request updated banking information for refund payments via direct deposit. Recipients have 30 days to provide these details via an IRS online account, or the agency will issue a paper refund after six weeks.
“Having reviewed the IRS notice and called the IRS phone lines, we learned that there is no simple process for these taxpayers to request an immediate release of their refund by paper check without waiting at least 10 weeks,” wrote Reps. Danny Davis, D-Ill., and Terri Sewell, D-Al., who each serve as ranking subcommittee members.
The IRS did not immediately respond to CNBC’s request for comment about the House Democrats’ letter.
The CP53E notices stem from an executive order signed by President Donald Trump in March 2025, which mandated government agencies transition from paper to electronic payments.
During the 2025 filing season, roughly 94% of individual taxpayers opted for refunds via direct deposit by providing banking details on their returns, according to the National Taxpayer Advocate. The remaining filers, about 10 million taxpayers, received 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, filers living abroad, those with religious constraints, victims of domestic abuse or individuals with disabilities, she wrote.
The change also “punishes those who don’t want to provide direct deposit information,” said Josh Youngblood, owner of The Youngblood Group, a Dallas-based tax firm. He is also an enrolled agent, which is a tax license to practice before the IRS.
While Youngblood always recommends his clients use direct deposit for refunds, he said some filers don’t want to send those details to the IRS.
What to know if you receive a CP53E notice
If you’re due a refund and don’t provide direct deposit details with your return this season, you can expect a CP53E notice.
Filers can’t resolve the issue by calling the IRS. The only way to provide banking details is via an IRS online account, according to the agency.
When clients receive the notice and want to update banking information, “we can’t do it for them, even with the power of attorney,” Youngblood said.
Always double-check that information before updating your account because the IRS will send a paper check if the details are incorrect and the bank rejects the deposit.
After updating your account, you should see refund details online within two to five days, according to the IRS. You can also use the Where’s My Refund tool to check the status of your payment.
