Taxpayers advised they can ignore CP53E notice — after verifying error

Taxpayers who aren’t due a refund but received a CP53E notice anyway can ignore the notice after they confirm its validity online, the Taxpayer Advocate Service (TAS) said.

Most IRS notices are sent automatically, meaning a processing error or an adjustment to a taxpayer’s return could have caused a taxpayer to receive the notice, according to a TAS news release.

Taxpayers should check their online account to determine the validity of the notice. “If it was received in error, you’re okay to ignore it,” the release, dated Monday, said.

The IRS, in response to Executive Order 14247, created the CP53E notice before the most recent filing season as part of the transition from paper checks to electronic payments and deposits. 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 notice asks taxpayers to add or update their bank account information to enable the use of direct deposit for tax refunds, using their IRS online accounts. It provides 30 days to respond. If taxpayers take no action, the IRS will issue a paper check after six weeks.

But the notices caused some accounting firms to warn of possible fraud. The QR code on the notice was among the reasons for suspicion.

The TAS release advised taxpayers to be cautious about using links or QR codes in notices. A legitimate notice may include a QR code, but fraudulent notices may take taxpayers to malicious websites. Instead, echoing the advice of CPAs, the TAS release advised taxpayers to go to the IRS website to find information about their account status.

While the CP53E notice includes a toll-free number to call, that line provides only recorded explanations of the notice and next steps, TAS said. Callers to that number are not transferred to customer service and are unable to enter bank account information.

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