Beginning with the 2026 filing season for 2025 tax returns, the IRS has changed how it handles refunds when direct deposit information is missing or incorrect. Instead of automatically issuing a paper refund check, the IRS will freeze the refund and send a CP53E notice requesting updated banking information.

For most taxpayers, this isn’t a big deal. Ninety-three percent of all taxpayers already receive their refunds by direct deposit. But some 5.6 million American households don’t have a checking or savings account. This transition to direct deposit is proving difficult for them.

Taxpayers who receive a CP53E notice have 30 days to provide or correct their bank account information through their IRS online account. This may require creating an account and completing identity verification through ID.me. Once the correct banking information is provided, the IRS will release the refund by direct deposit.

If no action is taken within 30 days, the IRS will generally issue a paper refund check after approximately six weeks, potentially delaying receipt of the refund by up to ten weeks. Refunds delayed more than 45 days may qualify for interest payments from the IRS.

Taxpayers without bank accounts, internet access, or those who prefer not to provide banking information may call the IRS at 800-829-1040 and request that a paper refund check be issued.

To avoid delays, taxpayers should ensure that the routing and account numbers on their tax returns are accurate and that the bank account name matches the name shown on the tax return.