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A major IRS shift is catching many taxpayers off guard — and it could delay your refund by weeks. More than 830,000 filers who requested paper checks are now facing unexpected holdups.
If you're counting on your refund to get ahead financially, this is one issue you'll want to address quickly. Here's what's happening — and what you need to do right now to avoid a long delay.
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The IRS is phasing out paper refund checks
The IRS has begun phasing out paper refund checks as part of a broader push toward electronic payments. As a result, the agency has sent CP53E notices to more than 830,000 taxpayers who originally requested a mailed check.
These notices ask filers to provide direct deposit information instead of receiving a paper check. Taxpayers are given 30 days to respond and update their payment details through their IRS online account.
If you receive this notice and don't take action, you can still receive a paper check. But, your refund will be delayed by six weeks or longer. That's why this change is creating confusion — and delays — for many filers this year.
Why the IRS is making this change now
The IRS says the move away from paper checks is largely about security and efficiency. According to the agency, paper checks are more than 16 times as likely to be lost, stolen, altered, or delayed compared to electronic payments.
By shifting to direct deposit, the IRS can process refunds faster and reduce fraud risks. This is part of a larger modernization effort aimed at improving how payments are sent and received. While the long-term goal is faster, safer refunds, the transition period is creating short-term friction for taxpayers who are used to receiving checks.
Who is most affected by the change
Not everyone will feel the impact of this shift equally. Taxpayers who prefer or rely on paper checks are the ones most likely to face delays.
This includes people without bank accounts, Americans living abroad, individuals with religious objections to traditional banking, domestic abuse survivors who may avoid shared accounts, and some people with disabilities. Critics of the policy argue that it may unfairly burden these groups, especially those who have legitimate reasons for not using direct deposit. For these taxpayers, providing banking information is not always simple or safe.
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What to do if you receive a CP53E notice
If you've received a CP53E notice, timing matters. You have 30 days to log into your IRS online account and provide direct deposit information. Once you submit your banking details, the IRS can resume processing your refund electronically. This is the fastest way to resolve the issue and avoid extended delays.
Ignoring the notice or missing the deadline can significantly slow things down. That's why it's important to act as soon as possible if you receive one.
How to avoid this issue going forward
The simplest way to avoid refund delays in future tax seasons is to choose direct deposit when you file your return. Electronic refunds are typically processed much faster than paper checks.
E-filing your tax return and selecting direct deposit is still the most reliable way to receive your refund within a few weeks. It also reduces the chances of errors or payment disruptions. Even if you prefer paper checks, this IRS shift signals that electronic payments will likely become the default moving forward. Planning ahead can help you avoid surprises next year.
Bottom line
The IRS's move away from paper refund checks is already affecting hundreds of thousands of taxpayers, with delays tied directly to how refunds are requested. If you receive a CP53E notice, responding quickly is the best way to keep your refund on track.
For most filers, switching to direct deposit is the easiest way to avoid future issues and lower your financial stress — especially during tax season when timing matters most.
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