830K US Taxpayers Receive IRS Refund Delay Notice for Paper Check Requests

Americans are receiving bigger tax refunds this year. Internal Revenue Service data shows refunds increased more than 10% compared with the last filing season. As of 27 February, the average US tax refund was $3,742, up from $3,382 a year earlier.

The IRS has already disbursed $136.6 billion in refunds this tax season to 36.5 million taxpayers, up 9.4% from $124.8 billion a year earlier. US President Donald Trump's tax reforms and breaks on overtime and tips could be driving the higher refunds.

However, a new law is prompting the IRS to transition to fully electronic direct deposit payments instead of paper checks, which could mean not everyone receives their tax refunds on time. The US Treasury is moving away from paper checks primarily to reduce identity theft.

The IRS sent over 830,000 CP53E notices to tax filers about refund delays for paper check requests, according to House Ways and Means Committee Democrats. The committee sent a letter to US Treasury Secretary and acting IRS commissioner Scott Bessent, seeking answers about the CP53E notices sent to filers.

'Having reviewed the IRS notice and called the IRS phone lines, we learned that there is no simple process for these taxpayers to request an immediate release of their refund by paper check without waiting at least 10 weeks,' wrote Representatives Danny Davis and Terri Sewell in the letter.

The IRS had already notified taxpayers in September 2025 about the paper checks refund phaseout and encouraged filers to prepare for the change.

What Are CP53E Notices?

The IRS sends this notice to filers, urging them to update banking details for refund payments via direct deposit. Filers who received the notice have 30 days to provide the information through an IRS online account. If they don't, the agency will issue a paper check after six whole weeks.

The CP53E notices come from an executive order signed by Trump in early 2025 that directed government agencies to transition from paper payment requests to electronic payments.

While 94% of US individual taxpayers opted for refunds via direct deposit by providing banking details during the 2025 filing season, about 10 million taxpayers received refunds via paper checks.

The IRS transition to electronic payments could impact these millions of unbanked taxpayers the most. 'Many of these taxpayers receive paper checks due to systemic, geographic or religious factors,' said national taxpayer advocate Erin Collins. This could include unbanked households, filers living abroad, people with religious constraints, victims of domestic abuse, or individuals with disabilities.

The change also 'punishes those who don't want to provide direct deposit information,' said Josh Youngblood, owner of The Youngblood Group.

If you receive a CP53E notice, you can't resolve the issue by calling the IRS. You must provide banking details via an IRS online account. However, ensure to double-check the information before updating your account, since the IRS will send a paper check if the details are incorrect and the bank rejects the deposit.

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