The CP53C indicates your refund delay is caused by a system-level issue within the IRS's processing infrastructure. This is a technical problem on the IRS's end. Your return and your eligibility for the refund are not in question. The system just hasn't been able to complete processing.
System Issues
IRS system issues can include batch processing failures, database errors, system updates that affect certain return types, and backlogs created by high volume or reduced staffing. These issues are beyond your control and beyond the control of any individual IRS employee.
No Action Required
There's nothing you can do to speed up a system issue. The IRS needs to resolve it internally. Wait through the timeframe stated on the CP53C. If that timeframe passes, call the number on the notice for a status update. If the issue persists beyond 120 days total, contact the Taxpayer Advocate Service.
Your Refund Is Safe
A system issue doesn't mean your refund is lost or denied. It means the IRS's computer hasn't finished processing it. The refund will be issued once the system issue is resolved, along with any interest accrued during the delay.
If your refund is stuck in a system issue, call us at (813) 229-7100. We can help escalate through the Taxpayer Advocate if needed.