The 2026 tax season in the United States has officially begun, with the Internal Revenue Service (IRS) urging taxpayers to submit accurate bank account details to ensure fast and seamless refunds. The IRS’s Taxpayer Advocate Service emphasised on Monday that refunds could be temporarily suspended if direct deposit information is incomplete or incorrect.
An IRS statement noted, “Your refund will remain on hold until accurate direct deposit details are provided or a paper check is requested.” Taxpayers affected by missing or incorrect information will receive a CP53E notice, which instructs them to update their information within 30 days. Failure to comply with the deadline will result in the IRS issuing a paper check, typically within six weeks.
Importance of Direct Deposit
The IRS strongly recommends the use of direct deposit, citing it as the fastest and most secure method of receiving tax refunds. A comparison of the two primary refund methods is provided below:
| Refund Method | Typical Processing Time | Notes |
|---|---|---|
| Direct Deposit | Approximately 3 weeks | Fastest and most secure |
| Paper Check | Approximately 6 weeks | Alternative method; higher risk of delays |
Taxpayers who cannot receive a direct deposit will not automatically receive a paper check; they must actively update their bank information or request a paper check themselves.
This guidance stems from an executive order issued on 25 March 2025 by then-President Donald Trump, which aimed to modernise federal financial transactions and gradually phase out paper checks. The order highlighted that paper checks contribute to unnecessary costs, processing delays, and increased risk of fraud, loss, or theft.
The shift has become even more critical in the aftermath of the COVID-19 pandemic, which saw a significant rise in mail-related theft complaints. The IRS has therefore urged taxpayers to provide correct details and update them promptly to avoid delays.
Key Takeaways for Taxpayers:
Submit accurate bank account information.
Opt for direct deposit wherever possible.
Update information on time to prevent refund delays.
Following these steps will help ensure that refunds are processed quickly, safely, and without interruption, allowing taxpayers to receive their funds efficiently and securely.