IRS tax scams have been on the rise over the past several years. The IRS even has a webpage dedicated to them. One of the latest tax scams references the CP53E Notice, which is issued when the IRS cannot complete a refund via direct deposit using the bank information on file.

As with any request for your personal or private financial information, always ask questions and verify before acting.

What the CP53E Scam Looks Like

Illegitimate requests from the IRS for bank or personal information can look very real. Fraudulent tax scams like the CP53E notices are designed to redirect you away from the IRS and toward an environment controlled by the scammers where your information can be captured. The goal is to create just enough urgency to discourage scrutiny. These messages often instruct you to:

• Click a link or scan a QR code.
• Enter or “confirm” bank account details.
• Respond via email, text, or phone.
• Act quickly to avoid delays or complications.

A few particularly clear red flags on tax scams such as this one will look like this:

• Request you to update information outside of your IRS Online Account
• Links that do not clearly lead to IRS.gov
• Have instructions to scan a QR code
• Request communication via text, email, or phone
• Language that feels urgent, threatening, or inconsistent with IRS tone

What a Real IRS Issued CP53E Notice Looks Like

The IRS CP53E Notice is a real document sent when the IRS encounters an issue with the bank account information on file. The taxpayer will be asked to log in to their IRS Online Account to update the details. There is no alternate method. There are no shortcuts. And there is no consequence for taking a moment to verify before acting. If you receive a real CP53E notice:

• You will be given 30 days to respond.
• You must update your information through your secure IRS Online Account.
• IRS representatives cannot update your bank information for you
• If you do nothing, the IRS will issue a paper check within several weeks.

Final Thought

Scams like this latest mimicking the CP53E Notice work by taking something real and creating just enough urgency to make you feel like you have to act immediately. The most effective response is to slow down and only rely on verified channels, such as your financial and tax advisors or the IRS directly.

If you receive a CP53E notice, or anything similar, and have questions, it is worth confirming before responding. We are always available to help you assess whether a communication is legitimate and to guide you on the appropriate next step. Contact your Sassoon Cymrot tax attorney with questions.