More than 830,000 taxpayers have received IRS notices this filing season warning that their tax refunds may be delayed as the federal government shifts to electronic payments.
“More than 830,000 taxpayers have received notices from the IRS that their refunds are being held and delayed, some by more than 2 months, because they did not provide the required banking information,” the lawmakers said.
“Having reviewed the IRS notice and called the IRS phone lines, we learned that there is no simple process for these taxpayers to request an immediate release of their refund by paper check without waiting at least 10 weeks,” the lawmakers wrote.
The IRS said the move is designed to reduce fraud, speed up refunds, and lower costs. Paper checks are “over 16 times more likely to be lost, stolen, altered, or delayed than electronic payments,” the IRS said.
Most taxpayers already receive refunds electronically. During the 2025 filing season, the IRS issued more than 93.5 million refunds.
Of those, 87 million refunds—93 percent—were delivered through direct deposit, while about 6.5 million refunds—7 percent—were mailed as paper checks.
Taxpayers receiving the CP53E notice are instructed to update or add bank account information through their IRS online account within 30 days.
The agency said taxpayers must log in to their accounts online to update direct deposit information, as IRS employees cannot change banking details over the phone.
If taxpayers need to add bank information, it is important to enter it correctly the first time. According to the IRS, taxpayers who enter incorrect banking information when updating their account cannot fix it online—if a deposit is rejected, the IRS will issue a paper check
After updating the information, taxpayers can track their refund through the “Where’s My Refund” tool, with updates typically appearing within several days.
If taxpayers do not respond to the notice, the IRS said it will issue a paper check after about 6 weeks.
Lawmakers asked the agency to provide additional information on the delays and on how taxpayers without online accounts can request paper refunds, with a response due by March 23.
The IRS website explains the different notices and letters taxpayers may receive, including the CP53E notice. Instructions and guidance are available online at irs.gov.
