IRS seeks examples of incorrect CP53E notices

The IRS believes it did not send any CP53E notices erroneously and is seeking the AICPA’s help in uncovering any examples of taxpayers who should not have received one, an AICPA tax leader said last week.

The notices, which seek bank account information for people who are due refunds, created an uproar from those who said the IRS did not owe them money. At least 3 million notices were sent, the AICPA said.

“Where our members are really seeing the pain points is when they weren’t expecting that notice,” Melanie Lauridsen, the AICPA’s vice president–Tax Policy & Advocacy, said Thursday during AICPA Town Hall. But the IRS said the notices also went to taxpayers who had a net positive adjustment to their account, even if they were only owed a penny, she said.

“If you believe you received an erroneous notice that was not a net positive adjustment, or where your bank rejected the deposit, please send me an email because the IRS would love to actually see an erroneous notice for this,” Lauridsen said.

The email address is IRSServices@aicpa-cima.com.

In response to Executive Order 14247, the IRS created the CP53E notice before the most recent filing season as part of the transition from paper checks to electronic payments and deposits.

The notice asks taxpayers to add or update bank account information through their IRS online accounts to enable direct deposit for refunds. It provides 30 days to respond. If the taxpayers take no action, the IRS issues a paper check after six weeks.

However, notices were also sent to taxpayers who were not due a refund, including those who applied overpayments to the following year, reported no balance due or a balance due, or had already provided valid direct deposit information, the AICPA said in a letter sent to the IRS in June.

The IRS did provide further guidance, but it arrived after filing season ended, the AICPA said.

— To comment on this article or to suggest an idea for another article, contact Martha Waggoner at Martha.Waggoner@aicpa-cima.com.