Got a CP53E Letter From the IRS? Don’t Panic

If you recently filed your federal tax return and received an IRS CP53E notice, you might be wondering what it means — especially if you weren’t expecting a letter from the IRS.

You’re definitely not the only one. The IRS has been sending out more of these notices this year, and some taxpayers are receiving them even when something doesn’t seem to add up.

What is a CP53E notice?

The IRS generally sends a CP53E letter when your tax return shows that you’re due a refund, but there’s an issue with the bank information provided. This could mean your account information was missing, incorrect, or your bank rejected the direct deposit. The notice usually asks you to add or update your bank account information through your online IRS account so the IRS can send your refund. This is becoming more common as the IRS moves away from sending tax refunds by paper check and generally requires taxpayers to receive refunds through direct deposit.

But what if you weren’t expecting a refund?

This is where things can get confusing. Some taxpayers have reported receiving CP53E notices even though they weren’t due a refund at all. In some cases, the taxpayer actually owed money to the IRS and paid the balance when they filed their return. Since many of these notices are sent automatically, mistakes can happen. Receiving a letter that doesn’t match what you know about your tax return can understandably make you wonder whether the notice is legitimate or even if you’re being targeted by a scam.

What should you do if you receive one?

If you receive a CP53E notice, the IRS’s National Taxpayer Advocate recommends checking your online IRS account first. This can help you confirm whether the notice actually applies to you and whether there is a refund showing on your account. If you check your account and determine that the notice was sent to you by mistake, you generally do not need to respond to the notice. The important thing is not to panic. An IRS notice can be concerning, but a CP53E letter doesn’t automatically mean that something is wrong with your tax return or that you’ve done anything incorrectly.

If you’re unsure about the notice or your online account shows something different from what you expected, it may be a good idea to speak with your tax professional before taking any action.