Here’s something worth knowing right now: the IRS quietly removed the paper check option from Form 8888 this year. No announcement, no fanfare. It was just… gone. And nearly 1 million taxpayers who filed without direct deposit information received a CP53E notice telling them their refund was frozen. Not delayed. Frozen.
The Direct Deposit Freeze Is Real — and It’s Not Automatic
Starting with 2025 returns filed in 2026, the IRS is phasing out paper refund checks entirely under its “modernized payments” initiative. If your banking info is missing or outdated, your refund doesn’t automatically convert to a paper check anymore. It sits.
You get a CP53E notice and 30 days to update your bank details through IRS Online Account at IRS.gov — which requires ID.me verification, just to add another step. If you don’t respond within six weeks, a paper check eventually goes out, but congressional Democrats warned in a March 9 letter to Treasury Secretary Scott Bessent that some filers faced waits of 10 weeks or longer.
So if you recently switched banks? Go update your information today. Genuinely.
Bigger Refunds, But Slower Processing.
Here’s the Real Story
The average refund as of April 3, 2026 was $3,462, up 11.1% from $3,116 at the same point in 2025, according to the Tax Foundation. IRS CEO Frank Bisignano testified in March that 90% of e-filed refunds were issued within 21 days. But Bloomberg Tax reported the agency was processing measurably fewer returns per week in early 2026 versus 2025. Those two things can both be true.
Why the slower pace? In February 2026, DOGE terminated roughly 6,000–7,000 IRS employees mid-filing season. about 25–30% of the workforce. Bigger refunds are largely a one-time effect of new OBBBA deductions: tips, overtime pay (up to $12,500, or $25,000 joint), car loan interest, and a senior deduction up to $6,000. These require a brand new form, Schedule 1-A. More complex returns mean more IRS review. Translation: your refund might be larger and slower at the same time.
The Deadline Almost Nobody Knows About
This is the part I keep telling everyone. Tens of millions of taxpayers may qualify for refunds on COVID-era penalties and interest, but the relief is NOT automatic. You have to file Form 843 (Claim for Refund and Request for Abatement) on or before July 10, 2026, or you lose it. The IRS National Taxpayer Advocate Erin Collins explicitly warned that this deadline is barely publicized, and the benefit will almost certainly go to well-advised filers over everyone else. Small businesses, individuals who owe back penalties from 2020–2022. check whether you qualify, then check again.
What I’d Do Right Now
Open IRS.gov, log into your Online Account, and verify your direct deposit information is current. Then pull up the IRS2Go app and check your refund status. If you got a CP53E notice, the toll-free number (866-325-4066) is information-only, it cannot help you enter banking data, which is a genuinely maddening design choice. And if you had IRS penalties from the COVID years, talk to a tax professional before July 10. That deadline won’t extend itself.
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