Tax Refund Updates: Increased Payments, Paper Check Delays
This tax season, many Americans are seeing larger refunds. However, others are facing delays as the IRS shifts away from issuing paper checks.
Recently, Democrats from the House Ways and Means Committee reached out to Treasury Secretary and Acting IRS Commissioner Scott Bessent regarding over 830,000 notices sent to taxpayers about refund delays connected to requests for paper checks.
These notices, known as CP53E, request updated banking information for direct deposit refunds. Recipients have 30 days to provide this information via their online IRS account. If they miss this deadline, the IRS says a paper check will be mailed after a wait of about six weeks.
“After reviewing the IRS notice and calling their helpline, we noticed that there isn’t an easy way for these taxpayers to request their refund as a paper check without waiting at least 10 weeks,” noted Representatives Danny Davis (Ill.) and Terry Sewell (Alabama).
In September, the IRS announced the phasing out of paper refund checks, urging taxpayers to start adjusting to this upcoming change.
Important Information Regarding CP53E Notifications
This notice follows an executive order signed by President Donald Trump in March 2025, which aimed to transition government payments to electronic formats.
For the 2025 filing season, approximately 94% of individual taxpayers opted for direct deposit, according to the National Taxpayer Advocate. However, about 10 million taxpayers still receive paper refunds.
“Some taxpayers rely on paper checks due to various factors like geography and financial circumstances,” shared National Taxpayer Advocate Erin Collins. This could pertain to unbanked households, overseas filers, or individuals facing personal challenges.
Josh Youngblood, a tax firm owner in Dallas, commented that this transition could adversely affect those unwilling to share their direct deposit information with the IRS. He usually recommends direct deposit but understands some clients’ hesitations.
If you’re expecting a refund but haven’t provided your direct deposit information, anticipate receiving a CP53E notification. Unfortunately, you can’t resolve this by calling the IRS. The only method for submitting your banking details is through your IRS online account.
Even with a power of attorney, updates cannot be handled by someone else, Youngblood explained. If your banking information is incorrect and your deposit is rejected, a paper check will be issued. It’s wise to double-check your details before making any updates.
After updating your account, the IRS indicates refund details should appear online within 2 to 5 days. You can also use the IRS tool to check your payment status.
