An unexpected IRS letter can make anyone pause. A letter asking you to update bank information can feel especially unsettling.

Recently, many taxpayers have been receiving IRS CP53E notices related to tax refunds and direct deposit information. The notice itself is real, but scammers appear to be taking advantage of the confusion by creating fake versions designed to steal personal or financial information. Kiplinger reported on May 6, 2026, that CP53E letters are landing in more than 1 million mailboxes, with congressional data indicating 1.4 million notices had been issued as of March 2026.

Here’s what to know before you respond.

 

What is a CP53E notice?

A CP53E notice is an IRS letter connected to refund delivery. According to the IRS, the notice is related to recent changes in direct deposit options and allows some individual taxpayers to provide a new or updated bank account so they can receive a tax refund by direct deposit.

The notice does not automatically mean you are being audited. In most cases, it means the IRS needs corrected or confirmed refund delivery information.

 

Why are more people receiving these letters now?

The increase is tied to a broader federal shift away from paper checks and toward electronic payments. The IRS says Executive Order 14247, signed March 25, 2025, directed the Treasury and federal agencies to advance the transition to electronic federal payments, including the phaseout of paper tax refund checks beginning September 30, 2025, to the extent permitted by law.

The IRS says electronic refunds are generally faster and more secure, while refunds sent by mail can take six weeks or longer.

 

What should you do if you receive a CP53E notice?

Pause before taking action. The safest first step is to go directly to the IRS website yourself rather than using a link, phone number, or QR code from a letter you have not verified.

The IRS says taxpayers who receive a CP53E notice generally have 30 days to add or update bank account information through their IRS Online Account. After successfully completing the process, taxpayers should allow two to five days for refund information to update online and then use the “Where’s My Refund?” tool to check status.

For this notice, the IRS is also clear about one important point: IRS employees cannot update your bank account information by phone. You must use your online account within 30 days if you want to receive the refund by direct deposit.

If you do not respond, the IRS says it will issue a paper check after six weeks.

 

Red flags that a letter may be fake

A real IRS notice can still feel formal or confusing, so the goal is not to panic. The goal is to slow down and verify.

Be cautious if a letter asks you to provide your full Social Security number, bank login credentials, or detailed personal information through a third-party website. Also be wary of urgent or threatening language, unfamiliar links, or a QR code that sends you somewhere other than an official IRS page. Taxpayers should be especially careful when a letter asks for sensitive information, pushes third-party links, or does not match their tax situation.

The IRS says a message, call, letter, or email may be a scam if it is unexpected, rushes or threatens you, offers refunds or credits, pressures you for personal or financial information, or tells you to pay immediately “or else.”

 

How to verify an IRS letter safely

The IRS typically contacts taxpayers first by mail through the U.S. Postal Service. To verify a notice, the IRS recommends searching for IRS notices and letters through its official site. The IRS also reminds taxpayers that official government websites use “.gov” and secure sites use HTTPS.

 

A practical approach:

1. Type IRS.gov into your browser.

2. Sign in to your IRS Online Account directly from the official IRS site.

3. Check whether your refund status or notice information appears there.

4. Use “Where’s My Refund?” after any successful update.

5. Do not share bank login credentials, scan an unverified QR code, or call a number you cannot confirm.

 

If you receive a CP53E notice, do not ignore it—but do not rush either. A legitimate notice may require action if you want your refund by direct deposit. A fake notice may be designed to get you to act before you think.

When money, identity, and taxes overlap, a little extra verification is worth it. Log in through IRS.gov directly, confirm what the IRS has on file, and reach out to your tax professional or financial team if anything feels off.

 

We’re here to help!

If you received a CP53E notice or any IRS letter and are unsure what to do next, Abacus! is here to help you review the notice, understand your options, and take the right next step with confidence.

Contact our Abacus! Professionals before sharing personal or financial information so we can help you verify the notice and protect your refund.