With tax filing season behind us, scammers are taking advantage by sending fake notices impersonating the IRS, specifically the CP53E notice. Taxpayers and businesses should remain alert and understand the warning signs, especially when a notice requests personal or financial information.
Below, we share key indicators to help identify potential scams and steps to stay protected.
IRS CP53E Notice: What It Is and Why Scammers Are Targeting It
One of the most common scams clients are reporting involves IRS CP53E notice, which is issued when the IRS cannot deliver a tax refund by direct deposit because the taxpayer’s valid bank account information is missing or incorrect.
CP53E is a legitimate IRS notice, but it is new enough that many taxpayers may be seeing it for the first time. The notice was introduced as part of the IRS’s shift toward electronic payments through Executive Order 14247. Scammers are taking advantage of that unfamiliarity, as well as the notice’s close connection to direct deposit information.
IRS CP53E Scam Red Flags to Watch For
A CP53E notice may not be legitimate if it includes one or more of the following:
- QR code or clickable link directing you to “verify,” “activate,” or “unfreeze” a refund. Even if a legitimate notice does reference IRS.gov, it is safest to type the website into your browser instead of scanning a code or clicking a link.
- A request for bank account information by phone, text or email. For CP53E, the IRS states that you can update bank account information only through your online account, and IRS employees cannot make that change by phone.
- Urgent or threatening language demanding immediate action. A legitimate CP53E provides a 30‑day response window. A fake notice may also appear “forward dated” to increase the perception of urgency.
Key takeaway: Banking information for a CP53E notice can only be updated through a taxpayer’s secure IRS Online Account. No IRS employee can make this change on a taxpayer’s behalf.
How to Stay Protected from Common Tax Scams
The IRS maintains a Recognize Tax Scams and Fraud resource page updated throughout the year, along with its annual Dirty Dozen list of the most prevalent tax scams for 2026.
To stay protected, remember the following:
- Know how the IRS requests information. The IRS does not request banking or personal information through unsolicited emails, texts, phone calls, links, or QR codes.
- Verify before acting. Review any unexpected notice through IRS.gov/Account before providing information or making changes.
- Report suspicious activity. Forward phishing emails to phishing@irs.gov. If you suspect a case of identity theft, visit IRS.gov/identitytheft for next steps. Tax fraud can also be reported at IRS.gov/SubmitATip.
When to Ask a Grassi Advisor
If you receive a suspicious notice and you are unsure whether it is legitimate, it is best to err on the side of caution. Grassi’s Tax advisors can help answer general questions about IRS notices and direct you to the appropriate next steps.
We remain committed to helping clients stay informed and protected.
Frequently Asked Questions:
Q: What is IRS CP53E notice?
A: IRS CP53E notice is issued when the IRS cannot deliver a tax refund by direct deposit because banking information is missing or invalid.
Q: Is IRS CP53E notice legitimate?
A: Yes. CP53E is a legitimate IRS notice, but scammers are circulating fake versions to obtain personal or banking information.
Q: How can I tell if a CP53E notice is a scam?
A: Red flags include QR codes, urgent threats, requests for banking information by phone or email, or instructions to respond outside IRS.gov.
Q: What should I do if I am unsure whether a notice is real?
A: Do not engage with the notice. Navigate directly to IRS.gov to verify information and seek general guidance if needed.
