IRS Notices Causing Confusion

Several of you have reached out when you received a notice talking about a refund when you owed with your federal return.

The IRS is causing significant confusion by sending Notice CP53E to taxpayers who had a balance due on their 2025 returns. The notice requests bank account information to issue a direct deposit refund. Tax professionals speculate these unexpected refunds stem from the IRS recalculating and reducing underpayment penalties, often related to disaster relief. Notices are also being sent to taxpayers who are expecting a refund, but did not provide banking information with their tax return. This is part of a government-wide shift to electronic payments under Executive Order 14247. Taxpayers who receive the notice should use their IRS Individual Online Account (https://www.irs.gov/payments/online-account-for-individuals) to provide banking details within 30 days of the notice date.

Also, please be aware that scammers are circulating fraudulent versions of the notice and advise clients to only use the official IRS.gov website to provide information.