IRS Urges Accurate Bank Info to Avoid Refund Delays

The 2026 US tax season officially commenced last week, with the Internal Revenue Service (IRS) warning taxpayers that submitting incorrect or incomplete banking information could significantly delay refunds. The IRS Taxpayer Advocate Service (TAS) issued a notice on Monday emphasising that failing to provide accurate direct deposit details may result in a temporary freeze on payments.

“Your refund will remain on hold until you provide correct direct deposit information or request a paper check,” the TAS stated. Taxpayers impacted by missing or incorrect information will receive a CP53E notice, instructing them to update their details within 30 days. Failure to meet this deadline may compel the IRS to issue a paper check approximately six weeks later, further delaying receipt.

Direct Deposit Remains the Fastest Option

The IRS continues to recommend direct deposit as the fastest and most reliable method for receiving tax refunds. Taxpayers using this option typically receive their payments within three weeks. However, if a direct deposit is rejected, taxpayers must manually correct the issue. The IRS does not automatically send a paper check if an account number is missing or incorrect.

Background: Federal Shift Away from Paper Checks

This guidance aligns with a federal push to modernise financial transactions. In March 2025, President Donald Trump signed an executive order directing federal agencies to phase out paper checks. The order cited multiple concerns, including the “unnecessary costs, delays, and risks of fraud, lost payments, theft, and inefficiencies” associated with paper checks. Rising mail theft complaints since the COVID-19 pandemic further reinforced the need for electronic payments.

What Taxpayers Should Do

To avoid delays, taxpayers should:

Double-check all bank account numbers and routing details before submitting their tax returns.

Respond promptly to CP53E notices from the IRS within 30 days.

Consider updating their IRS account online to ensure direct deposit information is current.

Estimated Timeline for Refunds

With tax season underway, the IRS strongly urges all Americans to verify their banking details carefully to prevent unnecessary delays in receiving refunds.