Beware of Scammers Exploiting the IRS CP53E Notice
If you recently received a CP53E notice from the IRS and felt unsure about what it meant, you are not alone. The IRS sent the notice to millions of taxpayers, including many who were not expecting a refund, creating confusion that scammers quickly began exploiting.
Before you take any action, here is what you should know.
What Is the CP53E Notice?
The CP53E is a legitimate IRS notice related to the federal government’s efforts to modernize payment processing under Executive Order 14247. The IRS sends this notice when it approves a refund but cannot complete the direct deposit because the taxpayer’s banking information is missing, incorrect, or unverifiable.
The notice instructs taxpayers to log in to their IRS Online Account at IRS.gov and update their banking information within 30 days. If taxpayers do not respond, the IRS will mail a paper refund check after six weeks.
However, the IRS also sent CP53E notices in error to many taxpayers who are not actually due a refund. That mistake caused confusion, and scammers quickly began exploiting it.
How Are Scammers Using the CP53E Notice?
Scammers understand that unexpected IRS correspondence often creates urgency. They are sending fake CP53E notices and impersonating the IRS through phone calls, text messages, and emails to collect banking and personal information.
Because many taxpayers already question whether their notice is legitimate, these scams can appear convincing.
How Can You Tell If a CP53E Notice Is Fake?
Keep these important reminders in mind:
The IRS sends CP53E notices by mail only. The IRS will not call, text, or email you to request banking information.
IRS employees cannot update your banking information over the phone or in person. Only you can make updates through your IRS Online Account.
Do not scan QR codes or click links included in suspicious communications claiming to come from the IRS. Instead, open your browser and type IRS.gov directly.
The IRS generally issues the CP53E notice only once. If you receive a “follow-up” CP53E notice, you should treat it as suspicious.
What Should You Do If You Receive a CP53E Notice?
Your next steps depend on your situation.
If you were not expecting a refund, the IRS likely sent the notice in error. In most cases, you do not need to take any action, though you should continue monitoring your IRS Online Account for updates or unusual activity.
If you are expecting a refund, log in directly to your IRS Online Account at IRS.gov and follow the instructions provided there.
If someone contacts you by phone, text, or email claiming to represent the IRS regarding a CP53E notice, do not respond or provide any information. Instead, go directly to IRS.gov to verify your account status or refund information.
The Bottom Line
The IRS’s mistaken distribution of CP53E notices created a prime opportunity for scammers. Regardless of why you received the notice, you should never provide banking or personal information in response to unsolicited communications. Always verify information directly through IRS.gov.
If you have questions about a notice you received, or need help determining whether it is legitimate, our team is here to help.
Disclaimer of Liability
Our firm provides the information in this article for general guidance only, and does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisors. Before making any decision or taking any action, you should consult a professional advisor who has been provided with all pertinent facts relevant to your particular situation. Tax articles in this blog are not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding accuracy-related penalties that may be imposed on the taxpayer. The information is provided “as is,” with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.