By Leada Gore
al.com
(TNS)
A change from paper checks to electronic deposits could result in delayed refunds for hundreds of thousands of taxpayers.
Taxpayers who submit their returns electronically and provide banking information for direct deposit typically receive their refund within 21 days, assuming there are no other issues with the filing. However, as many as 1.4 million Americans who typically receive paper checks could have to wait longer for their refunds due to a federal government change mandating electronic deposits.
Democratic lawmakers, including Alabama Rep. Terri Sewell, recently sent a letter to the IRS questioning the switch and accompanying delays. The change is a result of President Trump’s “Modernizing Payment To and From America’s Bank Account,” Executive Order, signed in March 2025, that requires the IRS and other federal agencies to move away from paper checks except in an extremely limited number of cases.
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That means people who don’t provide banking information for their refund could face significant delays. The agency is currently in the process of notifying taxpayers who don’t provide banking information (account and routing numbers) through a CP53E form.
Filers have 30 days to update their information after receiving the notice. If they fail to do so, it will be six more weeks before a paper check is issued, pushing the wait time up to 10 weeks.
You can see more about what to do if you receive a CP53E form here.
What’s the average refund?
The latest filing statistics from the IRS show the average refund is $3,571, up almost 11% from last year’s average of $3,221. The agency has issued 57 million refunds, up from 53.7 million last year.
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That increase is due mostly to tax changes in Trump’s One Big Beautiful Bill, including eliminating taxes on overtime and tips and some other cuts.
Wonder where your refund is? You can track your refund here.
Photo credit: Richard Stephen/iStock
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