Expecting a paper refund? IRS is sending delay notices to many taxpayers - here's why

Many taxpayers in the U.S. are expecting a paper refund check, but instead they are getting an IRS notice, not money. The Internal Revenue Service (IRS) is sending a special notice called CP53E to these people. By mid-March, more than 830,000 notices were expected to be sent. These notices are going to people who did NOT give bank account details on their tax return. This information came from a letter written on March 9 by Danny Davis and Terri Sewell.

The leaders said there is NO easy way to quickly get a paper check after getting this notice. Taxpayers may have to wait at least 10 weeks to get their refund, as stated by USA Today. They blamed a new rule linked to an order by Donald Trump for causing delays. They said this rule is creating financial problems for millions of people. They also said this delay is not required by tax law, but is due to policy changes.

No phone update problem

The IRS is NOT allowing updates by phone through toll-free numbers. Instead, taxpayers must go online and update bank details through their IRS account. They must do this within 30 days after receiving the CP53E notice. If they do nothing, the IRS will send a paper check after about 6 weeks. People can track refunds using the “Where’s My Refund” tool.

People without bank account

This situation is creating a big headache for many taxpayers. It is worse for people who are not comfortable with technology. Some people don’t trust banks or don’t want to open accounts. Many affected people are “unbanked” (no bank account).

The Federal Deposit Insurance Corporation said about 4.2% of U.S. households (5.6 million people) have no bank account, as per the report by USA Today. The National Taxpayer Advocate said for these people, paper checks are a lifeline, not a choice. Some people have disabilities or system barriers that stop them from using online systems. Some religious groups avoid digital banking due to beliefs. Victims of domestic violence may avoid sharing bank details for safety and privacy reasons.

Trump rule paper checks stop

Matt Hetherwick advised taxpayers to keep bank details ready before filing returns. He also said people should double-check their tax forms to avoid errors. A similar notice (CP53) can also be sent if wrong bank details are given.

On March 25, 2025, Donald Trump signed an order to reduce paper checks. The reason given was that paper checks cause delays, fraud risk, theft, and extra cost. Because of this, the IRS is now slowly stopping paper refunds. Most taxpayers already use direct deposit for refunds. Around 94% of people gave bank details in the 2025 tax season, as noted by USA Today. But still, over 10 million people got paper checks last year.

What to do after notice

The IRS said it will send notices if: bank info is missing OR direct deposit fails. The IRS will still process your tax return even without bank details. But your refund will be delayed. When filing online, you may get an alert about missing bank info.

If you get the CP53E notice, you should act fast to get your money sooner. You must log in or create an IRS online account to update bank details. After updating, you will get a confirmation message. If there is an error, the system will show a message and you must follow instructions. After a successful update, it takes 2 to 5 days to update the refund status, as cited by USA Today. If the system doesn’t work, you should try again later.

FAQs

Q1. Why did I get an IRS CP53E notice instead of my refund?

You got it because you did not add bank details or there was a problem with your direct deposit, as per the Internal Revenue Service.

Q2. How can I get my tax refund faster after CP53E notice?

You must update your bank account online in your IRS account within 30 days to avoid long delays.