CP53E notice tied to paper-check transition causes confusion

Fraudulent or legitimate? In error or correct?

Those are among the questions taxpayers and tax professionals are asking after the IRS sent over a million CP53E notices to taxpayers advising them to update their bank information within 30 days for a direct deposit. Some are skeptical because the notices include a QR code, and some practitioners say their clients owe money and are not due a refund.

The IRS created the CP53E notice before the most recent filing season as part of the transition from paper checks to electronic payments and deposits ordered by President Donald Trump in Executive Order 14247. As of March, an estimated 1.4 million taxpayers had received the notice, according to a letter from members of the House Ways and Means Committee to Treasury Secretary Scott Bessent.

The notices caused some accounting firms to warn of possible fraud, with the QR code among the parts raising suspicions. Firms’ frequent advice: log on to irs.gov and bypass the QR code.

“Scammers are creating highly convincing fake CP53E notices, often featuring QR codes or links that lead to credential-stealing websites,” Pennsylvania firm Brinker Simpson warned on its site. “The IRS has begun using QR codes on some legitimate correspondence, which makes the fakes harder to spot at a glance. The safest assumption is that any QR code or link in a notice you receive should not be used until the notice itself has been verified through official channels.”

A Bank of Iowa blog post said: “Recently, some legitimate IRS CP53E notices may include a QR code which takes you to the IRS site. But, scammers may also use QR codes, so to be safe, we recommend that you do not use the QR code. Instead, manually type IRS.gov into your browser and log in to your official account to verify the notice and update banking information.”

CPAs’ experiences

Sadie Richardson, CPA, estimated that six of her clients received the CP53E notice. The firm where she works, Tax Specialists of Northern Colorado, had 25 to 30 clients receive the notice.

When Richardson first saw the notice, she didn’t think it was a scam. She didn’t scan the QR code, however, because “it’s just kind of like clicking on a link. I’m not going to scan a random QR code either,” she said. Instead, she has helped clients set up their account on IRS.gov and search for the notice there.

Even notices confirmed to have come from the IRS have caused problems. Richardson said some clients questioned why she had told them that they had a balance due when the notice said the IRS needed banking information to deposit a refund.

“They’re all confused and concerned that we did something wrong, or that something’s wrong somewhere,” she said. “I’ve had to explain to them, I don’t believe you actually do have a refund. I think this is a mistake or preemptive for future years or something. But I haven’t quite found an answer yet, so I’m just trying to reassure them that it doesn’t necessarily mean something’s wrong.”

Mark Gallegos, CPA, MST, a tax partner on Porte Brown’s accounting and consulting services team in the Elgin, Ill., office, said only a few of his clients lack an online account with the IRS. But among those few, several received fraudulent CP53E notices.

“What I tell clients is if you get one of those notices, if you’re not comfortable scanning it, give us a call, email us, get us a copy of that letter,” he said. “And I’ll help you set up an ID.me account. I’d rather do that than (have) someone say, ‘Hey, I just scanned this thing, and it took me to a site where I can put all my bank account information in. And a lot of people, unfortunately, will do that because they don’t know what’s going on, and they’re like, ‘Oh, I can just handle this myself.’ And then, in the blink of an eye, money is drawn from the account.”

AICPA response

The AICPA posted an advisory about the CP53E confusion, saying it’s aware that some notices may have been sent in error, including when overpayments are scheduled to be applied to 2026 estimated tax or when a balance is due. “Until further guidance is issued, the IRS is not recommending any further action,” the advisory said.

The AICPA said it’s also aware that some notices may be fraudulent and advised that taxpayers be sure to verify that any QR code links to irs.gov.

Treasury

For a taxpayer who doesn’t respond to the notice — and who is due a refund — the IRS said it will issue a paper check after six weeks.

Treasury did not respond to an email seeking comment on CP53E notices.

— To comment on this article or to suggest an idea for another article, contact Martha Waggoner at Martha.Waggoner@aicpa-cima.com.