The IRS has recently mailed more than 1 million “CP53E” notices to taxpayers regarding direct deposit information for tax refunds. Many taxpayers — and even tax professionals — have questioned whether these notices are legitimate because some include QR codes and, in certain cases, were sent to taxpayers who were not expecting refunds. (Journal of Accountancy)
What the Notice Means
The CP53E notice was created as part of the federal government’s transition away from paper refund checks and toward electronic payments. The notice asks taxpayers to update or provide bank account information through their IRS online account within 30 days. (Journal of Accountancy)
Why the Confusion?
Some notices appear to have been sent in error, including to taxpayers who:
- Owe taxes instead of receiving refunds
- Applied refunds to estimated taxes
- Requested paper checks instead of direct deposit
In addition, scammers are reportedly sending fake versions of these notices to steal personal and banking information. (Journal of Accountancy)
Important Safety Tips
If you receive a CP53E notice:
- Do not automatically scan the QR code
- Do not click unfamiliar links
- Instead, go directly to IRS.gov and log into your IRS online account to verify the notice
- Contact our office if you are unsure whether the notice is legitimate
The IRS has confirmed that some real CP53E notices do contain QR codes, which has added to the confusion. (Journal of Accountancy)
Do You Have to Respond?
If you are actually due a refund and do not respond, the IRS says it will generally mail a paper check after approximately six weeks. (IRS)
Our Recommendation
Before taking any action, verify the notice through your IRS online account or contact our office for assistance. Given the increase in fraudulent tax notices, extra caution is warranted.
