Getting a Tax Refund and Avoiding a Scam

You’re expecting a tax refund, and you gave the IRS your bank info so they can deposit it directly into your account. But what if there’s a problem? In that case, the IRS will give you something called a “CP53E notice” saying they could not deposit the money and that you have 30 days to update the details or add a new bank account. Understanding these tax refund notices can help you respond appropriately while avoiding fraudulent communications that attempt to steal personal or banking information.

How to Respond to Tax Refund Notices

1. Access or establish your online account by visiting your account to add or update your bank account information.
2. Upon successfully completing the process, allow 2-5 days for your refund information to update online. Use the Where’s My Refund tool to check your refund status.
3. If you encounter any systemic issues that prevent you from updating your bank account information, read the message carefully and try again later.

Frequently Asked Questions

Why do I need to provide a bank account for a direct deposit?

Executive Order 14247 mandates the transition to electronic payments for all Federal disbursements, including tax refunds, except under certain circumstances. Refer to IRS.gov/modernpayments for more information.

How will I know if my bank account was updated successfully?

You will receive a message indicating your bank account update was successful. If there are any issues with your changes, you will receive an error message. Read all messages carefully and follow any instructions given promptly.

Can I update my bank account if I call in to the toll-free line?

No, you can only update your bank account by accessing your online account. IRS employees cannot update bank account information. You must access your online account within 30 days from the date of the CP53E notice in order to receive your refund via direct deposit.

What if I added or updated my bank account information, but made a mistake. Can I correct it?

No, you will only have one opportunity to add or update your bank account using your online account. If your direct deposit is not accepted by the bank and is rejected, the IRS will issue a paper check.

If I don’t have a direct deposit account, how will I get my refund?

You may access your online account or contact the customer service toll-free number for more information. Visit IRS.gov/modernpayments for more on direct deposit options.

What if I did not respond to the CP53E?

If you don’t respond to the notice, the IRS will issue a paper check after 6 weeks. For updates on your refund status, visit Where’s My Refund.

Understand Tax Refund Notices and Avoiding Scams

The IRS has not commented on any scams, but several news organizations have cited possible dangers. That is, scammers are sending fake CP53E notices to taxpayers in order to access their bank information. How do you know it’s a fake letter?

For one, you can make bank information changes only on your own IRS account page. You cannot make changes by going to a non-IRS site, sending a text to anyone, or making a phone call. Any letter that asks you to do those things is a fake.

Also, were you even expecting a refund? If not, the letter is a fake. A letter uses a QR code to take you to a non-IRS site is fake. Some fake tax refund notices may also use QR codes or links directing taxpayers to non-IRS websites.

Your safest bet is to work with your tax preparer to help you differentiate a real IRS notice from a scam. The experts at Siepert & Co., LLP can help you identify legitimate tax refund notices and protect your financial information from fraudulent activity.