Bank account closed after choosing direct deposit (prep fees paid with refund)

[cva]

I have seen many similar questions asking what happens when a bank account is closed before the refund is direct deposited, however I couldn't find any which explained what would happen if you also had your tax preparation fees deducted from your refund.

I spoke with the IRS briefly about this and they didn't know what would happen since from their point of view, the money would be deposited to an interim account (green dot bank) and then it would be that bank's responsibility to figure out what happens next.

Is anyone familiar with what happens in this case?

[Critter · Accepted solution]

SBTPG bank is supposed to open an account in your name, receive the deposit, deduct your fees, and then send the rest of the money to your regular bank.  If there are any problems (such as, your bank rejects the deposit from SBTPG, or your account number is wrong), then SBTPG will hold the refund until they verify your identity and mailing address, and then mail a check.  They are supposed to notify you by email but you may need to contact them, in case the email was lost, put in a spam filter, or never sent.  (The verification process is a new step this year because last year they were apparently tricked into sending some checks to the wrong people.) You may contact SBTPG, toll-free, at 1-877-908-7228 or go to their secure website www.sbtpg.com if you need more information.