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Many taxpayers are receiving IRS notices (CP53E) regarding refunds even though their 2025 tax return showed a balance due. This has caused confusion for taxpayers and tax professionals across the country, and reports indicate that many of these notices may have been issued in error.
If you receive one of these notices unexpectedly, do not assume your tax return was prepared incorrectly or that you are suddenly entitled to a refund. In many cases, the notice appears to be related to an IRS processing issue involving refund and direct deposit notices.
The IRS has stated that taxpayers who receive these notices generally do not need to respond unless additional correspondence is received or they are actually expecting a refund.
What the Notice Means
The notice is typically generated when the IRS cannot process a direct deposit refund because banking information is missing, incorrect, outdated, or rejected by the bank.
For taxpayers who are legitimately due a refund, the IRS indicates that a paper refund check may be issued within approximately six weeks if no action is taken.
Be Aware of Scams
Scammers are also taking advantage of the confusion by sending fake notices designed to steal personal and banking information. Fraudulent versions often contain suspicious QR codes, requests for sensitive information, or instructions to call unofficial phone numbers.
Taxpayers should remember:
- The IRS generally communicates through physical mail, not text messages or email.
- Do not click unfamiliar links or scan QR codes unless you are certain they direct to IRS.gov.
- Verify refund information directly through your IRS Online Account or the “Where’s My Refund?” tool.
If you are uncertain whether a notice is legitimate or applies to your situation, contact your tax advisor before responding.