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 failure to include direct deposit details could result in a temporary freeze on your refund.
The IRS continues to recommend direct deposit as the fastest and most reliable way to receive a refund. (pixels)”Your refund will be withheld until you provide accurate direct deposit information or request a paper check,” the IRS Taxpayer Advocate Service said.
Affected taxpayers will receive a CP53E notice instructing them to update their details within 30 days. Missing the deadline can result in the IRS mailing a paper check about six weeks later.
Direct deposit preferredThe IRS continues to recommend direct deposit as the fastest and most reliable way to receive a refund.
Taxpayers who choose this method usually see payments within three weeks. If direct deposit is rejected, taxpayers must correct the problem themselves, as a paper check will not automatically be issued.
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The emphasis follows 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 inefficiency.”
The order cited increasing complaints of mail theft since the COVID-19 pandemic as a reason for the move.
What should taxpayers do?Taxpayers should ensure that they provide valid direct deposit information when filing. If banking details are unavailable, the IRS allows a waiver request for a paper check through an online account.
This change affects all federal payments, including Social Security and tax refunds
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The US Treasury Department notes that it costs about 50 cents to issue a paper check, while electronic transfers cost less than 15 cents.
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 fund transfer systems, the Treasury Department added.
