Want Your Tax Refund Fast? Avoid This Common Mistake, Agency Warns
As tax season ramps up, many Americans are eagerly awaiting their refunds — some anticipating "very large" sums this year. However, the Internal Revenue Service (IRS) and its Taxpayer Advocate Service (TAS) have issued an important warning: a small but critical oversight when filing your taxes could significantly delay your refund.
The Importance of Direct Deposit for Refunds
For years, the IRS has recommended receiving tax refunds through direct deposit as the fastest and most secure method. This year, however, it’s more crucial than ever. A new policy, stemming from an executive order signed by former President Donald Trump last year, aims to modernize federal payments by phasing out paper checks and money orders in favor of electronic transactions. The goal is to move all government payments — including IRS refunds, Social Security benefits, and Department of Veterans Affairs payments — to direct deposit or other electronic means.
What Happens if You Don’t Provide Direct Deposit Information?
According to the IRS’s Taxpayer Advocate Service, taxpayers who do not provide valid direct deposit details when filing this year risk having their refunds temporarily frozen.
If you omit your bank account information or if the information provided is incorrect, your refund will not be issued until you update your information or explicitly request a paper check. In such cases, the IRS will send a CP53E notice, instructing you to provide or correct your direct deposit information via the IRS website, generally within 30 days. Failing to act within this time frame will result in the IRS mailing a paper refund check after a six-week waiting period.
Beware: Paper Checks Are Not Automatically Issued
If the IRS rejects your direct deposit, it is critical to respond promptly. The TAS highlights that paper checks will not be automatically sent in response to rejected direct deposit attempts. Taxpayers will receive only one CP53E notice and have a single opportunity to update their banking details for direct deposit. Ignoring this notice may result in longer delays in receiving a refund.
Alternative Options for Receiving Your Refund
If you do not have traditional bank account details to provide, don’t worry. The IRS confirms that refunds can be sent to some mobile banking apps and prepaid debit cards, as long as they have valid routing and account numbers. Additionally, refunds may be deposited to certain retirement accounts such as traditional and Roth IRAs, and Simplified Employee Pension accounts.
For individuals without access to these options, the IRS offers a Treasury-sponsored alternative called the Direct Express Debit Mastercard, allowing recipients to access their refunds electronically without requiring a bank account.
Tax returns will still be processed regardless of payment method. However, to avoid delays, taxpayers should ensure their contact and banking information are accurate.
Speed and Cost Benefits of Direct Deposit
Taxpayers who choose direct deposit typically receive their refunds within three weeks of filing, according to the IRS. The agency also notes an important fiscal benefit — issuing paper refund checks costs taxpayers over $1 per check, while direct deposit costs only about 10 cents per transaction.
Paying the IRS If You Owe Taxes
For those who owe taxes rather than expecting a refund, there are no significant changes this year in payment options. However, the TAS indicated that additional updates affecting payments may be introduced in 2027. —
In Summary: To ensure the fastest possible delivery of your tax refund this year, avoid the mistake of not including your direct deposit information when filing. Verify that your bank details are accurate, and promptly respond if you receive a CP53E notice. Utilizing direct deposit not only expedites your refund but also supports government efforts to modernize payment systems and reduce costs.
For more information or assistance, taxpayers can visit the IRS website or their IRS Online Account portal.
Article source: Nexstar Media Inc., Jan 27, 2026