Summary
Millions of Americans may experience delays in receiving their tax refunds if they do not provide their direct deposit information to the IRS. The IRS is moving away from sending paper checks because it wants faster and safer electronic payments. Some people, like those without bank accounts, may face difficulties due to this change.
Key Facts
- Over 830,000 taxpayers received IRS notices because they did not include bank information for refunds.
- IRS Notice CP53E tells people to update their direct deposit info online within 30 days to avoid delays.
- If people do not update their banking info, their refund will be sent as a paper check, which takes longer.
- The IRS aims to phase out paper checks due to fraud risks, slower delivery, and higher costs.
- Roughly 93% of taxpayers got refunds through direct deposit during the 2025 tax season.
- The move to electronic payments could be difficult for people without bank accounts or internet access.
- People receiving the CP53E notice can request a paper check waiver if needed.
