Mr Short Dollars

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Issue Number: IRS Tax Tip 2026-34
Every taxpayer has the right to quality service from the IRS

All taxpayers have the right to quality service. This is one of 10 core rights within the Taxpayer Bill of Rights. Let's define what this means for taxpayers.

Right to quality service
Taxpayers have the right to:

Receive prompt, courteous and professional assistance from the IRS
Be spoken to in a way they can easily understand
Receive clear and easily understandable communications from the IRS
Speak to a supervisor about inadequate service
What taxpayers can expect
When taxpayers interact with the IRS, they can expect IRS representatives to:

Listen objectively. They will consider all relevant information prior to giving the taxpayer an answer.
Answer questions promptly, accurately and thoroughly
Give the taxpayer information on recourse options and applicable appeal rights
Treat people with courtesy
Generally, only contact taxpayers between 8 a.m. and 9 p.m.
Provide the taxpayer with information about how to get help from the Taxpayer Advocate Service in all statutory notices of deficiency
Provide information about options for legal help if someone is eligible for assistance from a Low-Income Taxpayer Clinic
IRS representatives will not:

Contact the taxpayer's employer if they know the employer doesn't allow such contact
Make aggressive phone calls that threaten arrest or prison time
Taxpayers can find answers to most tax questions on IRS.gov. Taxpayers can also contact the IRS directly by calling the number on the top right corner of all notices and letters.

16 hours ago | [YT] | 4

Mr Short Dollars

Issue Number: IR-2026-54
Inside This Issue
IRS issues Whistleblower Alert, expands efforts to uncover fraud

IR-2026-54, April 17, 2026

WASHINGTON — The Internal Revenue Service today issued a Whistleblower Alert highlighting an area of concern about misuse, diversion or fraudulent use of federal funds by tax-exempt organizations, individuals and businesses, and urged the public to provide information.

“Whistleblower Alerts are a new way for the IRS to spotlight high-risk areas and reach people who may have direct knowledge of noncompliance,” said IRS Chief Executive Officer Frank J. Bisignano. “We are expanding how we identify potential fraud, and these alerts will help connect us with individuals who can provide credible, timely information.”

The IRS Whistleblower Program offers monetary awards of up to 30% of proceeds collected based on whistleblower-provided information. Whistleblowers are encouraged to report specific, timely, and credible information about noncompliance with tax laws or other laws the IRS is authorized to administer. Whistleblowers should report what they know via Form 211, Application for Award for Original Information, at IRS.gov/SubmitATip.

The IRS Whistleblower Office intends to issue additional Whistleblower Alerts in the future as other high-risk areas emerge.

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6 days ago | [YT] | 7

Mr Short Dollars

If you need more time to file, request an extension

IR-2026-52, April 14, 2026

WASHINGTON — As the end of filing season approaches, the Internal Revenue Service reminds taxpayers they can get an extension to file their federal income tax return until Oct. 15, 2026, but they must request the extension by April 15, 2026, in order to avoid penalties.

An extension provides extra time to file, not additional time to pay. Taxes owed are still due by April 15. To avoid or minimize penalties and interest, taxpayers should estimate their total tax liability, subtract any payments already made, and pay the remaining balance by the deadline.

Ways to request an extension to Oct. 15

Use IRS Free File. All individual filers can use IRS Free File guided software at IRS.gov to electronically request an extension at no cost.
Use Free File Fillable Forms. Taxpayers can complete and submit Form 4868, Application for Automatic Extension of Time To File U.S. Individual Income Tax Return, electronically, regardless of income.
Pay online and select “extension.” Taxpayers who pay all or part of what they owe using IRS online payment options, including IRS Online Account, Direct Pay, or Electronic Federal Tax Payment System (if already registered), can select “extension” as the reason for the payment. This automatically generates an extension; no additional forms are required. Taxpayers should keep their confirmation number in their records.
File Form 4868 by mail. Taxpayers can complete and mail Form 4868, Application for Automatic Extension of Time To File U.S. Individual Income Tax Return, to the address listed in the form instructions.
Automatic extensions for certain taxpayers

Some taxpayers automatically receive additional time to file, even if they do not request an extension:

Members of the military on duty outside the United States and Puerto Rico receive an automatic two-month extension to file, until June 15. However, tax payments are still due April 15 to avoid interest.
Taxpayers serving in combat zones generally have at least 180 days after leaving the combat zone to file returns and pay any taxes due.
U.S. citizens and resident aliens who live and work outside of the United States and Puerto Rico receive an automatic two-month extension of time to file, until June 15. Interest will still apply to payment received after April 15.
Taxpayers in certain federally declared disaster areas may receive additional time to file and pay. Those eligible do not need to request an extension. Information on the most recent tax relief for disaster situations is available on IRS.gov.
Payment options

The IRS offers several options to make a payment and get the automatic filing extension:

IRS Individual Online Account
IRS Direct Pay
Electronic Federal Tax Payment System
Credit card, debit card, or digital wallet

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1 week ago | [YT] | 7

Mr Short Dollars

Last-minute filing tips, resources available to help taxpayers who still need to file

WASHINGTON — The Internal Revenue Service reminds last-minute tax filers that the April 15 tax deadline is next week. The IRS encourages those who still need to file to use free tools and resources on IRS.gov to file on time or request an extension.

From refund status and getting tax preparation assistance to researching tax law and finding answers to frequently asked questions, IRS.gov offers resources to help individuals and businesses meet the deadline.

For last-minute filers looking for free filing resources, IRS Free File remains an option for qualified taxpayers to file their return.

Taxpayers with questions about the new tax provisions in the One, Big, Beautiful Bill can find eligibility information and guidance on IRS.gov. The site also offers tools to help taxpayers understand how these changes could affect their tax return.

Key IRS.gov resources

IRS.gov/ITA. The Interactive Tax Assistant asks a series of questions and provides answers on a variety of tax topics based on the taxpayer’s responses.
Forms and Instructions. Find forms, instructions, and publications that reflect the latest tax changes, along with interactive links for additional help. This includes the new Schedule 1-A, Additional Deductions, used to claim tax deductions related to four major OBBB provisions.
Publication 17, Your Federal Income Tax. This publication explains tax law to help ensure taxpayers pay only the tax they owe.
Get personalized account services and faster refunds

IRS Individual Online Account. Access tax information 24/7 through a secure IRS Individual Online Account. Taxpayers can view tax account information and transcripts, interact with the IRS, and manage payments, refunds, and communications.
Direct Deposit. The fastest way to receive a refund. The IRS is phasing out paper tax refund checks and encourages taxpayers to choose direct deposit.
Get an extension to file

Taxpayers who cannot file their return by April 15 should request an extension by that date to avoid a failure to file penalty. An approved extension gives taxpayers until Oct. 15 to submit their return. However, any tax owed is still due by April 15. An extension of time to file is not an extension of time to pay. All taxpayers can also use IRS Free File to request an extension electronically.

Some taxpayers qualify for automatic extensions

U.S. citizens and resident aliens abroad
Members of the military on duty outside the United States and Puerto Rico. Those serving in combat zones have at least 180 days after they leave the combat zone to file returns and pay any taxes due. Details are available in Publication 3, Armed Forces' Tax Guide.
Taxpayers residing in a federally declared disaster area.
Taxpayers who do not qualify for an automatic extension can request one by the April 15 deadline. They should still pay as much as they can by the deadline to minimize interest and penalties.

Having trouble paying? IRS has options

Taxpayers who owe taxes have several payment options.

Those unable to pay in full by April 15 may qualify for online payment plans, including short- and long-term installment agreements. The IRS urges taxpayers to file their tax return and pay what they can, even if they cannot pay the full amount owed.

Interest and late-payment penalties will continue to accrue on unpaid balances after April 15. However, the failure to pay penalty is reduced by half while an installment agreement is in effect. More information is available on IRS.gov under About Form 9465, Installment Agreement Request.

Taxpayers can find these resources and more on the Let Us Help You section of IRS.gov, which provides quick access to filing assistance, refund information, payment options, and answers to common questions.

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1 week ago | [YT] | 4

Mr Short Dollars

Mr Short Dollar on YouTube
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Treasury, IRS issue final regulations listing occupations where workers customarily and regularly receive tips under the One, Big, Beautiful Bill

IR-2026-49, April 10, 2026

WASHINGTON ̶ The Department of the Treasury and the Internal Revenue Service today issued final regulations on the “No Tax on Tips” provision. The One, Big, Beautiful Bill final regulations provide the list of occupations that receive tips and define “qualified tips” that eligible taxpayers may claim as a deduction. Treasury and the IRS received over 300 comments, and a public hearing was held on Oct. 23, 2025. The final regulations describe the comments and how they are addressed in the final regulations.

“Taxpayers are already benefiting from No Tax on Tips since the IRS already is issuing refunds to eligible workers,” said IRS Chief Executive Officer Frank J. Bisignano. “Given the wide variety of workers who receive tips, these final regulations help implement an important tax benefit for American workers.”

The final regulations list more than 70 separate occupations of tipped workers, from bartenders to water taxi operators. Additionally, the final regulations provide clarification on the definition of qualified tips, as well as guidance on other requirements under the section of the tax law defining qualified tips.

List of occupations that receive tips The List of Occupations that Receive Tips is classified by the Treasury Tipped Occupation Code system, comprising a three-digit code and description for each of the occupations listed within the final regulations. As in the proposed regulations, the final regulations group the occupations into eight categories:

100s – Beverage and Food Service
200s – Entertainment and Events
300s – Hospitality and Guest Services
400s – Home Services
500s – Personal Services
600s – Personal Appearance and Wellness
700s – Recreation and Instruction
800s – Transportation and Delivery
The final regulations expand the list to include visual artists and floral designers in the personal services category and add gas pump attendants in the transportation and delivery category.

Definition of qualified tips A worker may only claim the deduction for qualified tips. To be a qualified tip, the tip must be received by a worker in an occupation on the List of Occupations that Receive Tips. The final regulations follow the proposed regulations in further clarifying that qualified tips must satisfy certain requirements:

Qualified tips must be paid in cash or an equivalent medium, such as check, credit card, debit card, gift card, tangible or intangible tokens that are readily exchangeable for a fixed amount in cash, or another form of electronic settlement or mobile payment application denominated in cash.
Qualified tips must be received from customers or, in the case of an employee, through a mandatory or voluntary tip-sharing arrangement, such as a tip pool.
Qualified tips must be paid voluntarily by the customer and not be subject to negotiation. Qualified tips do not include service charges unless the customer has an option to disregard or modify the service charge. For instance, in the case of a restaurant that imposes an automatic 18% service charge for large parties and distributes that amount to waiters, bussers and kitchen staff, if the charge is added with no option for the customer to disregard or modify it, the amounts distributed to the workers from this service charge are not qualified tips.
Importantly, workers can take the deduction only for qualified tips that are included on Form W-2, Form 1099-NEC, Form 1099-MISC, Form 1099-K, or reported by the worker on Form 4137. Gig workers and other self-employed individuals can qualify for this deduction if their occupation is on the List of Occupations that Receive Tips and the other statutory and regulatory requirements are met.

The new law limits the deduction for self-employed individuals to the individual’s net income.

For more information about the tax benefits from the One, Big, Beautiful Bill, please see the provisions page on IRS.gov.

1 week ago | [YT] | 5

Mr Short Dollars

Mr Short Dollar on YouTube
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“Hands Off” of Clients’ Refunds and Other Payments from the IRS
Although the 2026 filing season has drawn to a close, many filed tax returns are still to be processed. And certainly, there are a large number of Form 1040 series tax returns that are on automatic extension, as well as amended returns, that have yet to be prepared and filed. With that backdrop, the Office of Professional Responsibility (OPR) is taking the opportunity to remind tax practitioners about the non-endorsement and non-negotiation of their clients’ individual income or other tax refunds.

The Rule
The prohibition against endorsement or negotiation of taxpayers’ federal tax refunds is a longstanding one in Circular 230, Regulations Governing Practice before the Internal Revenue Service (Part 10 of Title 31 of the Code of Federal Regulations (CFR)),[1] which the OPR administers and enforces. The rule currently appears in section 10.31, Negotiation of taxpayer checks, and states:

A practitioner may not endorse or otherwise negotiate any check (including directing or accepting payment by any means, electronic or otherwise, into an account owned or controlled by the practitioner or any firm or other entity with whom the practitioner is associated) issued to a client by the government in respect of a Federal tax liability.

While the section encompasses refunds of tax, which are the primary focus of the provision, it extends to any “check” drawn on the United States Treasury paid to a taxpayer in connection with their liability for federal taxes. Also, as to refunds, the section’s coverage is not limited to those claimed on tax returns that a practitioner prepared for the taxpayer.[2]

Additionally, the OPR broadly interprets and applies the key phrase “endorse or otherwise negotiate” and the term “check.”

Section 10.31’s use of “by any means” should be taken literally, and regardless of method or form of deal entered into.
The use of “check,” in the sense of a tangible, paper one, is simply a continuation from the past and now operates more as an umbrella term.[3] While it still encompasses traditional payments on paper instruments that are cashed or deposited, it now extends to modern forms of payment, including electronic transfers of funds (direct deposit) to a financial account (bank or credit union account or IRA), prepaid or debit card, payment app, or digital wallet. See “Direct deposit” on irs.gov.
Caution: A taxpayer’s oral or written (or otherwise documented) consent given to their CPA, enrolled agent, or other practitioner to negotiate the taxpayer-client’s refund or other tax-related payment is NOT a valid defense and is irrelevant. It does not factually or legally matter, including, for example, in the all too common scenario in which the two mutually agree or arrange to share or split the payment, as an easy fix, because the taxpayer cannot afford to pay for the practitioner’s services other than through the expected refund or because the client is unbanked.

The standard for liability for violating section 10.31 is having acted “willfully” (see section 10.52(a)(1)). A willful violation is a voluntary and intentional disregard of a known legal duty. Black's Law Dictionary (12th ed. 2024), Willfulness (also defining “willful misconduct” as “Misconduct committed voluntarily and intentionally”).[4] The OPR will take into account during an investigation any attempt to circumvent or to mask prohibited endorsement or negotiation by having a client sign a document directing, agreeing to, or requesting the conduct it sets forth. The OPR potentially may treat the activity as contributing to or substantiating willfulness. Also, the OPR will not consider a client’s acceptance of the plan to be a mitigating factor.

Exemption: Refund Anticipation Loans & Other Products



The agreements described above should not be confused with a Refund Anticipation Loan (RAL), which advances funds to a taxpayer as a borrower, based on an anticipated income tax refund. Refund anticipation checks[5] (RACs), and other products or services similar to RACs (and RALs), are likewise predicated on an expected refund. They are contracts between the taxpayer and the lender or other provider, and the IRS is not a party to the contract or otherwise involved in the transaction that is formed.[6] Additionally, the IRS is not responsible or answerable for their use with clients or customers.[7]

The overall point is that appropriately structured refund anticipation financial agreements are not endorsement or negotiation of IRS payments issued to taxpayers.

Consequences of Noncompliance
Practitioners who have or may have violated section 10.31 (or any of the other regulations governing practice) are subject to investigation by the OPR, typically based on referrals received from IRS personnel, submitted to us on Form 8484, Suspected Practitioner Misconduct Report for the Office of Professional Responsibility.[8] Complaints from taxpayers are another source — alleging, for example, that a practitioner they hired to prepare and file their tax return misappropriated their refund in some way. IRS Form 14157, Return Preparer

1 week ago | [YT] | 9

Mr Short Dollars

Treasury, IRS provide guidance to States for nominating census tracts as qualified opportunity zones under the One, Big, Beautiful Bill

IR-2026-45, April 6, 2026

WASHINGTON — The Department of the Treasury and the Internal Revenue Service today issued guidance to the Chief Executive Officers of any State, the District of Columbia, and U.S. territories regarding the procedure for nominating population census tracts to be designated as qualified opportunity zones (QOZs) under the One, Big, Beautiful Bill.

“Permanently extending and expanding Qualified Opportunity Zones offers states an opportunity to attract long-term investment into underserved, rural, and economically distressed areas,” said IRS Chief Executive Officer Frank J. Bisignano. “The IRS works collaboratively with the Treasury Department and the states to ensure a smooth QOZ designation process, which in turn encourages investment in Qualified Opportunity Funds that spur economic development.”

Revenue Procedure 2026-12, which describes the nomination process, also identifies the eligible population census tracts, including those that are comprised entirely of a rural area, which may be nominated by the CEOs of the States, the District of Columbia, and the U.S. territories (States) to be designated as QOZs beginning in 2027.

New QOZ designations under OBBB

A QOZ is an economically distressed area in which new investments, under certain conditions, may be eligible for preferential tax treatment. The OBBB makes the QOZ tax incentive permanent. The first round of QOZ designations following the enactment of the OBBB will take effect on Jan. 1, 2027, with new rounds following every 10 years. In addition, the OBBB added tax benefits specific to investments made into QOZs that are comprised entirely of a rural area.

To be eligible for QOZ designation for 2027, a census tract must qualify as a low-income community (LIC). Rev. Proc. 2026-12 identifies 25,332 population census tracts that are LICs eligible for nomination as a QOZ. Of those, 8,334 tracts are comprised entirely of a rural area. By law, the number of population census tracts in a State that may be designated as QOZs may not exceed 25% of the number of LICs in the State. If a State contains 25 – 99 LICs, then a total of 25 eligible population census tracts may be designated and if a State contains fewer than 25 LICs, then all eligible population tracts within the State may be designated.

Beginning on July 1, 2026, and lasting a period of 90 days, subject to a single 30-day extension, State CEOs will begin nominating eligible census tracts to be designated as QOZs. Following the nomination process, the Secretary of the Treasury will certify and designate the nominated census tracts as QOZs. The Treasury Department and the IRS expect to issue additional guidance identifying the designated QOZs following the conclusion of the nominations and designation process, prior to Jan. 1, 2027.

Online tools and resources to be made available to State CEOs

To help with the nomination process, online tools and resources will be rolled out to State CEOs in the coming months to ensure efficiency and accuracy of their nominations.

In addition, the Treasury Department and the IRS previously issued Notice 2025-50 providing guidance on QOZ investments in rural areas as provided for under OBBB. For more information, see One, Big, Beautiful Bill provisions on IRS.gov.

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2 weeks ago | [YT] | 3

Mr Short Dollars

Issue Number: IR-2026-46
Inside This Issue
IRS expands Business Tax Account access to partnerships, government entities, and tax-exempt organizations

IR-2026-46, April 6, 2026

WASHINGTON — The Internal Revenue Service today announced a major expansion of its Business Tax Account, making the online self-service platform available to partnerships, federal, state, and local governments, Indian tribal governments, and tax-exempt organizations.

“By opening the Business Tax Account to partnerships, tax-exempts and other organizations, we’re giving millions more entities secure, convenient access to their tax information,” said IRS Chief Executive Officer Frank J. Bisignano. “Digital access will reduce the burden on these taxpayers because they no longer will be limited to paper and phone interactions to perform simple tasks with the IRS.”

The newly eligible entities join sole proprietors, S corporations, and C corporations that are already able to access the platform. The expansion supports the agency’s ongoing service improvement effort by broadening digital access to more segments of the business community.

The Business Tax Account is a secure, centralized platform that allows eligible users to manage their federal tax responsibilities online. Through BTA, users and designated officials can:

View tax balances, make payments, and see payment history
Download select digital notices
View eligible transcripts, such as payroll and income
Request a tax compliance check
See the business name and address on file with the IRS
For more information or to set up a Business Tax Account, visit www.irs.gov/businessaccount

2 weeks ago | [YT] | 5

Mr Short Dollars

More than 4 million children have been signed up for the Trump Accounts. The One, Big, Beautiful Bill established the Trump Accounts and the Trump Account contribution pilot program allowing taxpayers to establish an individual retirement account for children under 18 and receive a $1,000 federal seed contribution.

The eligibility requirements for a Trump Account and the pilot program are:

Trump Account is new type of individual retirement account for an eligible child who meets the age requirement and has valid Social Security number
Trump Accounts pilot program offers a $1,000 federal seed contribution for children born between Jan. 1, 2025, and Dec. 31, 2028, who are U.S. citizens with a valid Social Security number
Qualifying taxpayers must use Form 4547, Trump Account Election(s) to establish a Trump Account and to enroll in the pilot program with their tax year 2025 return.

For more information on Trump Accounts visit trumpaccounts.gov.

Back to Top

How the One, Big, Beautiful Bill helps gig economy workers
New provisions in the One, Big, Beautiful Bill lessen tax burden for gig economy workers.
Here are the notable changes that affect gig economy workers.

No tax on tips deductions: Eligible gig economy workers can deduct up to $25,000 in qualified tips based on filing status from their taxable income from tax year 2025 through 2028\
Permanent Qualified Business Income deduction: This deduction is now permanent and allows eligible workers to plan long term to maximize benefits. Certain tip income may be excluded when computing QBI.
Form 1099-K and the increased reporting threshold: Third party payment platforms must issue a Form 1099-K if the payments made during the calendar year is more than $20,000 and more than 200 transactions. Taxpayers must report all income when they file their tax return regardless of whether they receive a Form 1099-K or other information return
Bonus depreciation: The law allows 100% bonus depreciation on certain assets acquired after Jan. 19, 2025. This allows gig workers who buy certain qualifying property solely for use in their business.
Visit the One, Big, Beautiful Bill Provision on IRS.gov for more information.

Back to Top

Beware of tax scams related to the One, Big, Beautiful Bill
Scammers frequently exploit new or complex tax laws by spreading misinformation and making false promises. Businesses and individual taxpayers should watch for OBBB-related scams and take steps to protect their personal and financial information.

Here are some scams to watch for:

Ghost preparers exploiting new credits
Tips and overtime deduction scams
Deduction for senior enrollment scam
Fake OBBB credit or deduction outreach\
Refund advance or fast OBBB payout scams
Social media and influencer tax scams
Common red flags of these scams include:

Requests for personal or financial information by text, email, or social media
Promises of guaranteed or unusually large refunds
Fees to “enroll,” “activate,” or “expedite” tax benefits
Preparers who refuse to explain calculations or sign returns
For more information on the new tax law, visit One, Big, Beautiful Bill Provisions on IRS.gov.

Back to Top

IRS Business Tax Account expands user access
Business Tax Account is now available partnerships, federal, state, and local governments, Tribal governments, and tax-exempt organizations.
More businesses can now access IRS Business Tax Account. This secure online tool allows eligible users to manage their company’s federal tax responsibilities.

Through BTA, users and designated officials can: View tax balances, make payments, and see payment history
Download select digital notices
View eligible transcripts, such as payroll and income
Request a tax compliance check
See the business name and address on file with the IRS
For more information or to set up an account visit the Business Tax Account page on IRS.gov.

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2 weeks ago | [YT] | 9

Mr Short Dollars

Tax filing season progressing smoothly with timely refund processing and a high use of electronic filing

IR-2026-43, April 2, 2026

WASHINGTON — The Internal Revenue Service continues to deliver excellent service to taxpayers during the 2026 filing season with the rise in tax refunds, the smooth pace at which taxpayers are getting their refunds and the high use of electronic filing.

“With less than two weeks left in the filing season, the IRS continues to provide historically outstanding service to taxpayers,” said IRS Chief Executive Officer Frank J. Bisignano. “Tens of millions of Americans are getting their refunds direct deposited in their bank accounts and their returns processed promptly without error or delay.”

Highlights from the 2026 filing season, through March 20:

Over 80 percent of refunds were issued in less than 21 days with an average refund amount of $3,571.
Over 98 percent of tax refunds have been issued electronically via direct deposit, out of a total of 57 million refunds issued.
Over 98 percent of returns were filed electronically, out of a total of more than 78 million individual federal income tax returns.
The average refund is up by more than 10 percent with total refunds now at more than $202 billion.
Get refunds faster by providing banking information

The IRS encourages all taxpayers who are expecting a refund to include banking information when they file. Taxpayers who did not provide valid bank information when they filed can use online tools on IRS.gov to provide the necessary information to get their refund faster.

Only about one percent of taxpayers received a CP53E notice informing them that their banking information on the return is missing or invalid. Taxpayers do not have to wait to receive the notice to act. They can check the Where’s My Refund? tool for next steps and if this situation applies to them, they can use their IRS Individual Online Account to resolve the issue quickly by providing accurate banking information or the reason they cannot. Once updated, the IRS will issue their refund, usually within seven days. For security purposes, IRS employees cannot update bank account information over the phone or in person.

What taxpayers need to do

After receiving the CP53E notice, they should:

Access or create their IRS Individual Online Account.
Navigate to:
“Profile”
“Banking information”
“Add bank account”
Enter and submit their direct deposit information.
If taxpayers already took action through Where’s My Refund or IRS Individual Online Account before they received the notice, they can disregard it.
After updating their information, taxpayers can check the status on IRS.gov, with or without signing into their IRS Individual Online Account. Updates typically appear within a few days.

What happens if no action is taken

Taxpayers who receive a CP53E notice generally have 30 days from the date on the notice to act. If a taxpayer does not act within the 30-day window, the IRS will issue a paper check six weeks after the date the notice was issued.

Direct deposit remains the fastest and most secure way to receive a refund, helping reduce the risk of lost or stolen payments. Across government, paper instruments (e.g., checks and money orders) are far more likely than electronic payments to be lost, stolen, altered, or delayed.

What the CP53E notice means

Taxpayers may receive a CP53E notice if:

No direct deposit information was included on the tax return, or
The bank account information provided was incorrect or rejected by the bank.
The notice does not mean the refund is denied. Instead, it means the refund is on hold until the taxpayer acts.

What happens if a taxpayer does not have a bank account?

Taxpayers who have filed their return without their direct deposit information and qualify for an exception to the direct deposit requirement may review and select the appropriate exception in their IRS Individual Online Account. Limited exceptions to electronic methods are available for specific situations such as those involving hardships, or legal and procedural requirements. Providing exception eligibility information will allow the release of a paper check within one to two weeks.

If the taxpayer can’t access their IRS Individual Online Account, they can call the toll-free line for assistance with entering an exception to receive a paper check. Consistent with prior years, a paper check generally takes one to three weeks longer to process than a direct deposit. The telephone representative cannot input or update a taxpayer’s banking information.

More information

In response to the executive order, Modernizing Payments To and From America’s Bank Account, the IRS announced that paper refund checks began phasing out on Sept. 30, 2025.

Taxpayers can learn more about this notice, including frequently asked questions and step-by-step instructions, by visiting Understanding Your CP53E Notice on IRS.gov.

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3 weeks ago | [YT] | 5