Worried about that CP53E QR code? IRS updates FAQs

The IRS updated its FAQs on Notice CP53E with answers to four more questions, including how to determine if the QR code on the notice is legitimate.

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 bank account information, to enable 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.

Some tax professionals said their clients received the notices even though they owed money to the IRS and were not due a refund. In a news release, the Taxpayer Advocate Service (TAS) explained that 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.

Also, the QR code on the notice raised questions about the notice’s legitimacy. In updated FAQs, the IRS addressed that concern by advising taxpayers who use a link or QR code to look for a lock icon or “https://” at the start of the URL and to make sure the address ends in “.gov.”

TAS advised taxpayers to check their online account to determine the notice’s validity. “If it was received in error, you’re okay to ignore it,” the release said.

New and modified CP53E questions

In addition to the question about the QR code, the IRS added three questions and answers May 11:

1. What if I cannot access or create an online account?

You may access IRS.help.id.me for assistance in creating or accessing your online account.

2. How will I know if my bank account was updated successfully?

You will receive a confirmation message indicating your bank account update was successful. If there are any issues with your changes, you will receive an error message. Read all messages carefully and follow any instructions given promptly.

3. Can I use a bank account that doesn’t belong to me, like a family member or a friend?

No, the IRS requires you to use a direct deposit account under your own name or a joint account you share. If we are unable to validate your bank account information, we will issue a paper check.

The IRS modified the answers to two questions May 11:

1. What if I don’t have a direct deposit account, how will I get my refund

Visit IRS.gov/ModernPayments to learn about other direct deposit options, such as:

• Prepaid debit cards.
• Mobile payment applications.

There are limited exception conditions to request a paper check using your online account.

2. What if I don’t respond to the CP53E?

If you don’t respond to the notice, we will issue a paper check after six weeks. For updates on your refund status, visit Where’s My Refund?

Unchanged questions and answers

1. Why do I need to provide a bank account for a direct deposit?

Executive Order 14247 mandates the transition to electronic payments for all federal disbursements, including tax refunds, except under certain circumstances. Refer to IRS.gov/ModernPayments for more information.

2. Can I update my bank account if I call in to the toll-free line?

No, you can only update your bank account by accessing your online account. IRS employees cannot update bank account information. You must access your online account within 30 days from the date of the CP53E notice to receive your refund via direct deposit.

3. What if I added or updated my bank account information, but made a mistake, can I correct it?

No, you will only have one opportunity to add or update your bank account using your online account. If your direct deposit is not accepted by the bank and is rejected, we will issue a paper check.

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