IRS Notice CP53E

Forum|Forum|2 months ago
April 27, 2026
12 replies
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Is anyone getting Notice CP53E for refund direct deposit when the client owed and did not have a refund?

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BobKamman

Level 15

California CPA and maillist creator James Counts adds this information. So, IRS doesn't assess the ES penalty at the same time as they assess the tax? And these taxpayers will receive bills later?

"On one of my tax groups, it was posted that an EA out of New York got this response when they called the IRS Tax Practitioner Hotline to why their client got the CP53E letter from the IRS.

My client received the same CP53E letter and we did reach out to the tax practitioner hotline. After a wait on hold for over an hour, I spoke to an agent (Agent Whitney) who said that they want to refund my client the underpayment penalty that I had him pay with the return. She recommended that the client, not do anything at this time, wait 6-8 weeks for a paper check, then do NOT cash the check, and wait till the IRS computers catch up and access [probably means "assess"] the underpayment penalty. She did agree that this is ridiculous but said that the IRS computers have not calculated the underpayment penalty yet, which is what they are trying to return. Once they send the underpayment penalty notice, she said to return the refund check with the penalty notice and ask for any additional interest and penalty to be reversed (but keep copies of everything)."

C

cakeen

Level 4

We just got through to the IRS due to 3 of these letters being received so far and have the following to report (hope it helps):

the letter is legit
2 of the notices were due to estimated payments sent by clients that we didn't report.
1 was due to an amended return that is not processed yet. In the case of the amended return, the client does owe that amount sent but since the amendment has not been processed the IRS doesn't realize it.
If clients don't go online to update their banking within 30 days, paper checks will be mailed out 6-8 weeks later.
To update banking they go to their IRS account (if they have one), go to Profile at the top of the page then Update Banking on the left.