IRS CP53E Refund Notice Scams: What Taxpayers Should Know

Accounting firms are seeing a noticeable increase in scams tied to IRS Notice CP53E, a legitimate notice that the Internal Revenue Service (IRS) has been issuing more frequently this year. As the IRS continues moving away from paper refund checks and toward electronic payments, many taxpayers are encountering CP53E for the first time – creating an opportunity for scammers to take advantage of confusion and urgency surrounding tax refunds. 

What is an IRS CP53E Notice

A CP53E notice is issued when the IRS cannot deliver a tax refund by direct deposit because bank information is missing or invalid. Executive Order 14247 has created a shift from paper refund checks to direct deposit. The new direct deposit emphasis has led the IRS to allow individual taxpayers to provide the IRS with a new or updated direct deposit account to receive their tax refund via direct deposit if certain conditions are met.

You could receive a CP53E notice when:

• Your tax return shows a refund, but the bank information is invalid, missing, or rejected, or

• A return with a balance due is corrected by the IRS and now results in a refund, such as

  • Estimated payments made but not reported on your return, or

  • Underpayment penalties have been recalculated and reduced (often related to disaster relief)

When you receive the CP53E notice you have 30 days to update or add a new bank account on IRS.gov.  If no action is taken, a paper check will be issued six weeks after the notice date.

Real vs. Scam: The Checklist

To keep your accounts safe, use these tips to identify whether the CP53E letter you receive in the mail is authentic.

A legitimate IRS CP53E notice will: 

·      Arrive by U.S. mail only.

·      Direct you to IRS.gov for any questions and to update your bank account information.

·      State that you cannot update your bank account information over the telephone.

A CP53E Notice may not be legitimate if it includes any of the following:

·      QR code directing you to verify, activate or unfreeze a refund.

·      Arrives via email with a clickable link to update bank account information.

·      Request bank account information by phone, text or email.

·      Urgent or threatening language.

·      Offer an “agent” who can “fix” the issue for you if you provide your details immediately.

How can Aldridge Borden – OneSource Help 

If you have questions about an IRS notice you have received or are unsure whether a communication is legitimate, your Aldridge Borden Accountant can help you evaluate the situation and determine appropriate next steps.