When the IRS attempts a direct deposit and it fails, because of an incorrect account number, a closed account, or a bank rejecting the deposit, the agency no longer simply falls back to a paper check. Instead, it sends Notice CP53E, giving the taxpayer 30 days to log into their IRS Online Account and provide corrected direct deposit information. Only after that 30-day window passes without a response does the IRS issue a paper check, and even then, standard refund-check processing can take another 4–6 weeks.
Two things fully within your control can cut this risk to nearly zero. First, opt for direct deposit on every return, even if you’ve historically preferred paper checks. Second, double- and triple-check your account and routing numbers before filing. A single-digit typo is often what triggers this entire cycle, and fixing it after the fact can mean starting the 30-day clock from scratch.
This shift is part of a broader push toward digital tax administration at both the federal and state level. California, for example, already requires electronic filing for many returns and penalizes large paper payments. That’s the direction things are heading, so it’s worth taking the time now to set up online accounts with both the IRS and your state tax department.
The good news: once you’ve corrected your account details in your IRS Online Account, the system doesn’t wait out the full 30 days. It re-reads the updated information and attempts a new direct deposit roughly once a week during that window.
The bad news: a number of taxpayers have reported the process not working as the CP53E notice describes. Here’s what some have experienced:
Case A: The account details were updated, but the IRS system kept attempting deposits into the old, inactive account for several weeks. The taxpayer only found out when they called the IRS Helpline for an update and was told simply to wait until the system caught up and issued the refund to the new account.
Case B: The taxpayer updated their details, but the IRS system reverted to a paper check refund within the 30-day CP53E window anyway. The Helpline explained that the system had already made multiple direct deposit attempts and had switched to a paper check with no way to switch back, leaving the taxpayer waiting another 4–6 weeks for a check, despite following the CP53E instructions correctly.
Case C: A taxpayer chose to wait out the full 30-day window. Instead of issuing a paper check, the IRS system tried another direct deposit and issued a second CP53E notice, resetting the clock entirely. An IRS agent confirmed there’s no way to override a restarted cycle: the taxpayer would need to wait another 30 days before a paper check would even be issued, then another 4–6 weeks for it to arrive. In total, the wait from filing to refund stretched to 14–16 weeks.
Two things fully within your control can cut this risk to nearly zero. First, opt for direct deposit on every return, even if you’ve historically preferred paper checks. Second, double- and triple-check your account and routing numbers before filing. A single-digit typo is often what triggers this entire cycle, and fixing it after the fact can mean starting the 30-day clock from scratch.
This shift is part of a broader push toward digital tax administration at both the federal and state level. California, for example, already requires electronic filing for many returns and penalizes large paper payments. That’s the direction things are heading, so it’s worth taking the time now to set up online accounts with both the IRS and your state tax department.
The CP53E notice leaves taxpayers with one option: log into their IRS Online Account and provide up-to-date direct deposit details. Taxpayers who don’t already have an account will first need to verify their identity through ID.me, a process that can add several more days before they can even access their account to fix the problem.
Many are asking why this transition was rolled out nationwide in one sweep, rather than phased in with real-world testing. A recent Government Accountability Office (GAO) report found that refund wait times have roughly tripled in the 2026 filing season.
The timing makes the delays sting more. Many taxpayers are expecting larger refunds this year thanks to the tax reductions introduced by the One Big Beautiful Bill Act (OBBBA), reductions that weren’t reflected in 2025 withholding tables. Those savings are welcome, but the added wait is landing at a time when many Americans are already stretched thin by the cost of living.
Many taxpayers only learn about the Executive Order once their refund is already delayed. Most tax filing software, both consumer products and the professional applications CPAs use, hasn’t been updated to flag the importance of choosing direct deposit or double-checking account details before filing.
Paper checks will remain an option for taxpayers who’d rather not go digital, but clearer guidance built into filing software would go a long way toward helping both taxpayers and CPAs avoid delays that are, in most cases, entirely avoidable.
Don’t wait on it passively. Log into your IRS Online Account (or complete ID.me verification if you haven’t already) and update your direct deposit information as soon as possible.
Not sure where your refund stands, or want help navigating a CP53E notice you’ve received? Contact our team. We’ve helped several clients work through exactly this issue this season.
