...
By Amanda Greenwood
Associate News Editor
0
Share
Newsweek is a Trust Project member
See more of our trusted coverage when you search.Prefer Newsweek on Googleto see more of our trusted coverage when you search.
Millions of Americans expecting a federal tax refund may face delays stretching into June if they fail to complete one increasingly critical step: Providing direct deposit information to the Internal Revenue Service (IRS).
According to reporting from The Hill, more than 830,000 taxpayers have already received IRS notices warning that their refunds are being held because they did not include banking details when filing their returns.
The delays are tied to the IRS’s accelerated push to phase out paper refund checks in favor of electronic payments.
Read More on Personal Finance
What Is Causing The Tax Refund Delays?
At the center of the problem is IRS Notice CP53E, which is sent to taxpayers whose refunds cannot be issued electronically. Lawmakers say the notice instructs recipients to log into their IRS online account and provide or correct direct deposit information within 30 days.
If they fail to do so, the IRS says a paper check will eventually be mailed—but only after a significant delay.
House Ways and Means Committee Democrats wrote in a March letter that affected taxpayers could wait more than 10 weeks to receive a paper check, pushing some refunds well into early summer.
IRS Push to Eliminate Paper Checks
The delays stem from a broader federal effort to modernize government payments. In September 2025, the IRS formally announced it would begin phasing out paper tax refund checks, citing higher fraud risks, slower delivery times, and increased costs compared with electronic payments.
The change was mandated by Executive Order 14247, which directed federal agencies to transition away from paper-based transactions where legally possible. The IRS says paper checks are over 16 times more likely to be lost, stolen, or delayed than direct deposit payments.
During the 2025 filing season, roughly 93 percent of taxpayers received refunds via direct deposit, according to the IRS.
Who Is Likely To Be Most Affected?
The National Taxpayer Advocate Service—an independent office within the IRS that works to protect taxpayer rights—reported that the IRS’s transition to phase out paper refund checks may disproportionately impact Americans who don’t have bank accounts, are living abroad, belong to some religious groups, are victims of domestic abuse, or have disabilities that may limit access to traditional banking.
It cautioned that while the move to electronic payments improves efficiency, it risks creating hardships for taxpayers who lack reliable internet access or familiarity with online systems.
“Progress should not come at the expense of the most vulnerable among us. For some taxpayers, paper checks are not just a matter of preference; they are the only option that respects their financial reality, geographic constraints, or religious convictions," the National Taxpayer Advocate Service said.
How Taxpayers Can Avoid Delays
The National Taxpayer Advocate Service says that those who receive a CP53E notice—which will only be sent once—must update the IRS with their banking information online. If a taxpayer doesn’t have any banking details, they can request a paper check waiver through their online account.
If a taxpayer doesn’t respond to the notice within 30 days, “the IRS will issue a paper check after six weeks.”
As tax season enters its final stretch, one missing detail could be the difference between getting a refund in weeks or waiting until summer.
...
View 0 Comments
Submit Correction
View Editorial & AI Guidelines