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Accounting & CPA · Daily Brief
·2 min read
ByJoseph Lancaster, Editor
Signal
Stories
IRS reports over 830,000 taxpayers will receive CP53E notices due to missing or invalid direct deposit information, with potential delays exceeding 10 weeks for some filers.
Impact · CPAs must manage client expectations regarding refund timing and adjust processing procedures to ensure accurate direct deposit information submission.
Action · Review all pending tax return submissions for complete and accurate direct deposit information; develop client communication strategy for potential delays.
IRS data for week ending February 28, 2026 shows average tax refund amount of $3,676, representing a $350 increase from previous year.
Impact · Higher refund amounts may indicate changes in tax withholding patterns or credits that CPAs need to analyze for optimal client tax planning.
Action · Analyze client withholding patterns and identify opportunities for tax planning adjustments based on refund trend data.
AICPA has requested guidance on credit changes implemented through the One Big Beautiful Bill Act (OBBBA), citing lack of current guidance.
Impact · Uncertainty around credit implementation affects tax planning and compliance strategies for clients offering paid family and medical leave.
Action · Document all OBBBA-related credit calculations and maintain flexible adjustment strategies pending IRS guidance.
IRS includes payroll-related phishing and impersonation schemes in 2026 Dirty Dozen list, highlighting digital payroll systems as prime targets for tax fraud.
Impact · Increased security risks for firms handling payroll processing and tax preparation through digital systems.
Action · Implement enhanced security protocols for payroll processing systems and conduct staff training on latest phishing tactics.
Pattern
Watch for: 1) IRS guidance release timeline on OBBBA credit changes within next 60 days; 2) Processing time trends for returns with direct deposit issues over next 10 weeks; 3) Evolution of payroll-specific phishing tactics as tax season peaks; 4) Impact of higher refund averages on Q2 consumer spending patterns; 5) Congressional movement on tariff revenue distribution proposal and potential IRS implementation planning.
Sources
The Intelligence Layer