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IRS alert: Missing bank info could delay your refund this tax season; here's what taxpayers should do
The 2026 US tax season has started, with the IRS urging people to share accurate banking info to prevent refund delays.
The 2026 US tax season began last week, and the Internal Revenue Service is urging taxpayers to submit accurate banking information to avoid delays in receiving refunds. The IRS Taxpayer Advocate Service announced Monday that failing to include direct deposit details could trigger a temporary freeze on your refund.
“Your refund will remain on hold until you provide correct direct deposit information or request a paper check,” the IRS Taxpayer Advocate Service said.
Taxpayers affected will receive a CP53E notice instructing them to update their details within 30 days. Missing the deadline may result in the IRS mailing a paper check approximately six weeks later.
Direct deposit preferred
The IRS continues to recommend direct deposit as the fastest and most reliable way to receive refunds.
Taxpayers choosing this method typically see payments within three weeks. If the direct deposit is rejected, taxpayers must correct the issue themselves, as a paper check will not be automatically issued.
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This emphasis comes after an executive order by President Donald Trump on March 25, 2025, aimed at modernizing federal financial transactions by phasing out paper checks. The order highlighted that paper checks “impose unnecessary costs; delays; and risks of fraud, lost payments, theft, and inefficiencies.”
The order also cited rising complaints of mail theft since the COVID-19 pandemic as a reason for the shift.
What taxpayers should do
Taxpayers should ensure they provide valid direct deposit information when filing. If banking details are unavailable, the IRS allows a waiver request for a paper check through the IRS Online Account.
This change affects all federal payments, including Social Security and tax refunds.
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The US Treasury Department noted that issuing a paper check costs roughly 50 cents, compared with less than 15 cents for an electronic transfer.
Eliminating paper checks is intended to reduce administrative costs and encourage more Americans to use electronic payment methods, including debit and credit cards, digital wallets, and other electronic funds transfer systems, the Treasury Department added.
