The Internal Revenue Service is alerting taxpayers that refunds could be temporarily halted during the 2026 filing season if direct deposit information contains errors or omissions. With the agency processing an anticipated 164 million individual returns for tax year 2025, accurate banking details have become critical as paper checks are phased out.
IRS CEO Frank J. Bisignano emphasized that e-filing with direct deposit remains the fastest way to receive a refund. The shift toward electronic disbursements, accelerated by Executive Order 14247, aims to reduce issues like lost or stolen checks, which the IRS states occur over 16 times more frequently than with electronic payments.
Tax professionals note that many filers overlook routing and account numbers until a problem arises. "Many taxpayers haven't fully grasped that shift yet," said Mitchell Gerstein, a senior tax adviser. CPA Jacob Cohen warned that refusing to provide bank details can lead to delays stretching for weeks.
The IRS's "Where's My Refund?" tool updates once daily, typically showing status about 24 hours after an e-filed return is received. The Taxpayer Advocate Service clarified that returns filed without direct deposit information will still be processed, but refunds will be frozen until correct details are provided or a paper check is requested.
Taxpayers who receive a CP53E notice—issued when a direct deposit fails—generally have 30 days to update bank information online. After this window, the refund may be issued as a paper check, which can take six weeks or longer. IRS employees cannot update bank information over the phone.
For unbanked individuals, the IRS points to alternatives like certain mobile apps and prepaid debit cards that provide routing and account numbers. The agency also allows refunds to be split into up to three accounts. Officials advise against filing duplicate returns, as this can further slow processing.