04/30/2026
ATTENTION: I KNOW SEVERAL CLIENTS HAVE RECEIVED THIS LETTER. IF YOUR HAVING ANY ISSUES PLEASE CONTACT US AND WE CAN HELP WITH THE PROCESS.
CP53E Causing Confusion on Balance-Due Returns
NATP members are reporting an increase in CP53E notices referencing “missing direct deposit information,” even when a return shows a balance due. This appears to be a system-generated message tied to missing banking information, not the taxpayer’s actual outcome. This has raised questions from both practitioners and clients about accuracy and whether action is needed.
NATP brought this issue directly to the IRS. Here’s the current understanding:
The CP53E notice is legitimate, not a scam, despite concerns about QR codes.
Balance-due situations are still being evaluated by the IRS and the IRS doesn’t yet have clear data.
Published official guidance is expected soon.
Until official guidance is released, we recommend telling your client that if the return shows a balance, the direct deposit language does not apply and can be ignored.
Proactive clients can log in to their IRS online accounts and enter their direct deposit or withdrawal information. Note that clients have 30 days to update or add bank account information upon receiving a notice.
National Association of Tax Professionals
PO Box 8002, Appleton, WI 54912
800-558-3402
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