In recent weeks, we have seen an uptick in scam activity involving IRS Notice CP53E from the Internal Revenue Service. While CP53E letters are a legitimate form of IRS correspondence, fraudsters are exploiting them to obtain sensitive financial and personal information from taxpayers.
Scammers replicate the format and language of official IRS notices to create convincing fraudulent letters. These communications may:
- Instruct recipients to “correct” or “verify” bank account details
- Request Social Security numbers, dates of birth, or account credentials
- Direct recipients to fraudulent websites or phone numbers
A genuine CP53E notice is issued when:
- A taxpayer’s return includes a direct deposit request, and
- The IRS is unable to complete the deposit (commonly due to incorrect or rejected bank account details)
In these cases, the IRS converts the refund to a paper check and mails it to the taxpayer’s address of record. Importantly, a legitimate CP53E notice does not require the taxpayer to resubmit banking information.
Red Flags to Identify Fraudulent Notices:
Have caution if a CP53E-related communication includes:
- Requests for sensitive information (e.g., full SSN, bank login credentials, PINs)
- Urgent or threatening language implying immediate penalties or enforcement
- QR codes directing to non-IRS domains (anything not ending in .gov)
- Contact information that does not match official IRS listings
As a rule, the IRS does not solicit confidential financial data through unsolicited correspondence tied to refund processing issues.
Follow a structured IRS Notice verification approach:
- Access their IRS Online Account
- Navigate directly to IRS.gov (do not use embedded links on email or letter)
- Validate notice details
- Confirm the notice number (CP53E), applicable tax year, and identifying information
- Contact the IRS using official channels
- Use phone numbers published on IRS.gov, not those printed on the suspicious letter
- Consult with your TBC advisor
- Maybe you weren’t supposed to receive a refund
- If refund delivery details or account information appear inconsistent
Reminder to always take caution:
- Do not respond directly to any notice that appears suspicious
- Do not provide personal or banking information based solely on mailed instructions
- Always verify through official IRS channels or your TBC advisor
The increasing presence of scam activity tied to IRS Notices CP53E makes us aware of a broader trend: fraudsters increasingly leverage legitimate tax processes to create credible phishing attempts. By reinforcing verification protocols and being aware of common red flags, it can significantly reduce the risk of identity theft and financial loss.
For any questions regarding IRS notices or refund processing, we encourage you to speak with your trusted TBC advisor.