I opted for paper check and the IRS sent me a CP53E. Why does TurboTax not follow IRS requirements to enter the bank account?

[ryjouk-work]

Due to TurboTax issue - not following IRS requirements and misleading people that they still can get paper checks from IRS for 2025 year - my tax refund will be delayed + I am now required to create irs.gov account, which I don't want to + I need to spend a lot of time to do this. As TurboTax should follow IRS procedures, it should notify and disallow paper checks for the federal return. Why didn't TurboTax follow the IRS 2025 guidelines regarding direct deposit requirements?

[maglib]

@ryjouk-work   I sent your suggestion to TT moderators.  It is a good one as it is impacting many filers this year. Direct deposit has also been an issue as many banks are rejecting joint filer returns when only 1 is on the account and SSN must match.  

Here was message I sent:

OP made a great suggestion as the IRS no longer is mailing refund checks under Executive Order 14247 delaying many refunds this year. These users are now getting CP53E notices and having to create IRS.gov accounts and  tax refunds will be delayed for extended time.  This should be made clear to any user who requests a paper check.  Additionally direct deposit users should be made aware that SSN of the taxpayer must match for direct deposits and many banks won't accept direct deposit if both joint filers are not on their accounts.   It is causing a number of issues.  Clarity on the options needs to be better.

[TomParke2022]

I have same issue and logging into the IRS to update the information has got me in a loop of verifying my information and uploading my drivers license. The loop keeps taking me back to the start.

TurboTax should be the one fixing this issue since they caused it. I paid good money to get my taxes completed correctly with up to date IRS rules and regulations.

This is delaying my return, I am unemployed and need the money. Will TurboTax refund some of my file fees due to THEIR error?

[maglib]

@TomParke2022 actually the IRS caused it and their regulations under paperwork reduction no more checks yet all directions still require tax programs to offer the checks.  System for verification is NOT TT, it is federal govt.  You have to do it now for unemployment, social security too....

[user17748735829]

Turbo Tax absolutely has responsibility. The executive order requiring direct deposit was signed March of 2025. Almost a year later and they don't make it clear in their software you must provide a bank account number when you file. I as well did not provide an account number as I was unaware of the EO. Now I'm stuck in the "get your ID verified" loop like everyone else. This along with incorrect tax payment instruction at the state level, I'm probably done with Turbo Tax.

[maglib]

IRS will still issue checks. IRSrequires sadly causing delays for many and is an IRS change but, physical checks are a REQUIRED option for filing still as per IRS regulations. Turbotax may possibly give a clearer warning in near future.  Banks rejecting electronic deposits for SSN mismatch or joint returns is banks doing as  part of Know your Customer. Just requiring ID verify now which you will need for so many things in future.  This is part of combatting fraudulent filings that cost taxpayers.  

[rcsaal]

I have had the same issue and received the CP53E.  TurboTax should have alerted us to this new directive on the appropriate screen where you indicate the option to receive a paper check, as we have done for years.  Note that you only have 30 days from date of notification to now provide your direct deposit information.  I did not realize you also need to now open up a new IRS.gov account.  Again this is info that should have been provided on the appropriate screen.  I would have gladly provided direct deposit info when I e-filed, in order to avoid setting up an unnecessary IRS account.  

[mahonj]

TT totally missed the boat on this requirement, which was published at least 6 months ago.  TT should not allow you to file a return without banking information, period.  This is causing heartburn for hundreds of filers, undoubtedly.  If we can't trust the software to not create a huge hassle for us, what are we paying for?

[mikebris1968]

This mistake should have been known and rolled out as an update before the 2026 season.  You get a F on knowing tax code for 2026 Intuit.  Very Sad.  My 83 year old mother in law now has to got through the whole process of logging into the IRS now just to get her SS refund.  Pathetic.

[mikebris1968]

Per IRS notice CP53E...

We have 30 days to update the bank account number

or update direct deposit information on the IRS website.

Apparently 83 year old grandmothers on SS are not " special circumstances".

[mahonj]

Agreed.  TT needs to up their game and add a notification page detailing all of the current year's changes, and whether TT plans to adjust or ignore.  Seems to me they just ignore a lot of important changes the Fed announce.

[maglib]

There is not an error. The IRS requires the option of a paper check.  
i do agree TT and all other tax services should have made the check option to have a flag.  Other providers did not inform either. 
suggestion was made to TT to make this clearer.

[lbracht]

Hi,

 I feel your pain; however in the future we may not be able to request paper at all!!! If you feel this is unfair, I would suggest you voice your concerns to the IRS and your legislative body.

 FYI, I have used my routing number and account number to receive and/or pay city, state, and federal governments, I hope this information helps.

[mesquitebean]

And a lot of people will be unhappy when they find out at some point they will no longer be able to pay the IRS by check either--either for taxes due, quarterly estimated taxes, extension requests, etc.    I don't know when the IRS plans to start phasing that in.   I actually find it easier to pay electronically using the IRS website or inside my online IRS account.   And safer (I hope) than sending a paper check, and then worrying about whether it was received, etc.