If you received a CP53E notice (or you got your refund by paper check in the last filing season), this is the update you don’t want to learn the hard way.
In past years, if your direct deposit failed—or if you didn’t want direct deposit—you could often default to a paper refund check and move on.
Now the IRS has started phasing out paper refund checks for individual taxpayers as part of Executive Order 14247. For most people, refunds are being pushed to electronic delivery (direct deposit or other approved electronic options), and the “paper check fallback” can mean delays and extra steps.
What changed:
What didn’t change:
Your return can still be processed—but the IRS may temporarily freeze the refund until you provide direct deposit info (or request a paper check through the IRS process).
This can happen when the account is closed, the numbers don’t match, or the bank rejects the transaction. Under the new process, the IRS generally does not automatically reissue a rejected direct deposit as a paper check.
Translation: you need to be ready to act.
If your refund is frozen, the IRS sends a CP53E notice.
Here’s the IRS explainer (bookmark it):
The key points:
This is where people get burned.
Under the CP53E process:
The IRS has acknowledged that not everyone has traditional banking access. Depending on what’s available/approved, alternatives may include:
The practical takeaway: if you’re not using a traditional bank account, make sure your chosen option can actually receive an IRS refund electronically before you file.
If you got a paper check last year—or you’ve had direct deposit hiccups before—do this now:
✅ Confirm your routing number and account number are current
✅ Confirm the account is open and able to receive ACH deposits
✅ Set up (or access) your IRS Online Account so you can respond fast if anything flags
✅ If you changed banks recently, update your plan before filing
✅ If you use a prepaid card/digital wallet, confirm it supports the right deposit details
About 7% of individual refund recipients received their refunds by paper check in the most recent filing season. That’s millions of people who now need a cleaner system before they file.
If you want this handled proactively—so you don’t lose weeks waiting on IRS process delays:
Schedule a Free Tax Strategy Session
Protecting your blind side,
Laura
This post is for general informational purposes only and is not tax, legal, or accounting advice; consult your tax professional for guidance specific to your situation.