What is Notice CP53E?

Notice CP53E is the letter the IRS sends when it processes a return but cannot issue the refund electronically because the taxpayer's banking information is missing or invalid. The IRS freezes the refund and requests valid direct deposit details or an explanation. Most taxpayers already receive refunds by direct deposit, so the change mainly affects those who omit bank details. Responding promptly through an online account or by phone is the fastest way to release a frozen refund. The refund amount still reflects the credits a filer claims, such as the Child & dependent tax credits strategy.