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Level 2
posted Feb 14, 2024 4:13:46 AM

Direct Depoit was rejected by my bank now SBTPG is sending it back to the IRS

Hello my DD was set to go in my account 2/13/2024 but my bank said they rejected it because of how it was coded. I called SBTPG and they said the check would be mailed. They also took an extra $70 for the bank rejecting it. Now the website says it will go back to the IRS. This is not what they told me. I don’t know what to do any help pointing in the right direction would be appreciated. 

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1 Best answer
Expert Alumni
Feb 14, 2024 10:22:36 AM

This FAQ states that SBTPG will return your refund to the IRS after they have issued you a Cashier's Check and mailed it to you, and it was returned to them. 

 

This is after your original bank rejected the initial deposit.

 

I'd say you need to resolve this with SBTPG.

 

@Seminolefan78 

24 Replies
Expert Alumni
Feb 14, 2024 9:21:31 AM

No, there isn't anything you can do in this situation. Your check will be mailed to you at the address on your return. 

 

You can complain to your bank and they may agree to refund your service charges. 

Level 2
Feb 14, 2024 9:27:18 AM

So is it going back to the IRS or as a cashiers check to me?

Expert Alumni
Feb 14, 2024 9:39:25 AM

The direct deposit will be returned to the IRS, unless TPG is processing your refund. If it goes back to the IRS, they will issue a treasury check and mail it to you. 

 

If it goes back to TPG, they will issue it as a check and mail it to you.

 

Level 2
Feb 14, 2024 9:41:27 AM

I’m more confused. It was sent to the SBTPG for the TurboTax fees to be taken out. So why would it go back to the IRS? What should I expect now?

Expert Alumni
Feb 14, 2024 9:45:56 AM

If it is processed by TPG, it shouldn't go back to the IRS, You are the one who said you were told it was going back to the IRS. 

Level 2
Feb 14, 2024 9:53:19 AM

That’s what the SBTPG says on their site. That’s why I don’t understand. It states that it’s being returned to the IRS not that they will send a check. I’m sorry if I am being dumb here. 

Expert Alumni
Feb 14, 2024 10:22:36 AM

This FAQ states that SBTPG will return your refund to the IRS after they have issued you a Cashier's Check and mailed it to you, and it was returned to them. 

 

This is after your original bank rejected the initial deposit.

 

I'd say you need to resolve this with SBTPG.

 

@Seminolefan78 

Level 2
Feb 14, 2024 10:27:33 AM

I talked to a rep yesterday and got nowhere. Now when I call it hangs up saying it was returned to the IRS. This is making no sense. I thought SBTPG would issue a cashiers check but the automated message says wait 10-15 weeks for the IRS to fix the issue. I appreciate all the answers and the help. I’m not upset just very bewildered. 

New Member
Feb 15, 2024 10:31:52 AM

Samething happened to me, and there is no one you can speak to at SBTPG, very frustrating. I used Turbotax for 7 years and this never happened. I will find another product to do my taxes next year

Level 2
Feb 15, 2024 10:43:02 AM

Same here I will Never use TurboTax again. No help at all they used SBTPG to take their fees out. So why not provide better support for the customers. In other words TurboTax got their fees so what happens to us no longer matters to them it’s not their money involved. Just saying!

Returning Member
Feb 17, 2024 7:31:24 AM

What was it coded as ? And was anyones rejected by chime ? 

Level 2
Feb 17, 2024 7:52:11 AM

My bank explained that it was coded CTX or CCD instead of PPD. I’m not sure if anyone else’s was rejected by Chime I have SoFi. 

Returning Member
Feb 17, 2024 8:19:41 AM

So you don’t have chime ? Try emailing tpg 

Level 2
Feb 17, 2024 9:27:21 AM

No I don’t have Chime. I have emailed them with no response. I filed a complaint with the Better Business Bureau on SBTPG. I have not been able to get any contact back from them.

New Member
Feb 19, 2024 4:53:02 AM

Chime said that tpg has ended their contract with them so I don’t know what’s going to happen 

Level 1
Feb 20, 2024 11:27:21 AM

I have seen too many threads like this.  Sbtpg is a third party company we trusted through TurboTax!!! Now, we'll be waiting months.  It's seriously time to try another company for our tax needs.  TurboTax, Sofi, and sbtpg, are just playing the blame game.  Meanwhile, everyone is getting their money but the people pay them. The customers. 

Level 2
Feb 20, 2024 1:05:18 PM

This legit has just happened to me with sofi! Between them, turbo tax and the IRS I have received no good answers. Sofi says it was coded wrong when sent over. Same way as stated above. and turbo tax isn't helping with where my money is (they took the fees out already too). I hear about a check being mailed out but the irs is giving me a completely different number that sounds like a debit card number 

New Member
Feb 20, 2024 1:22:57 PM

I'm in a similar boat. I bank with SoFi & according to the IRS website, my refund was sent 2/14 but SoFi hasn't received it. I stumbled on info for SBTPG's website shows filing fees deducted & the rest "Pending return to IRS" 2/14 & "under review" so I called their customer service # & their automated system said they identified  "unusual activity" & they're sending my refund back to the IRS then it just hangs up with no option to speak to a live person. 

I'm not buying what they're selling because the IRS already approved & sent the refund, I googled SBTPG & there have been countless complaints about them fraudulently keeping refund payments & lying to consumers about sending refunds back to the IRS yet the IRS knows nothing about it & many still trying to get their money 2-3 years later!! I've been a loyal Turbo Tax customer for years but since they want to do business with a bunch of crooks, that ends today!

Level 2
Feb 20, 2024 1:30:48 PM

That is absolutely absurd. I have also been with TurboTax for as long as I can remember. The run around is insulting at the best of times for this. The thing that makes less sense is my state refund was deposited just fine and on time. How can the state refund get deposited but somehow the federal was sent over coded incorrectly as a business to business transaction as sofi is saying. 

Level 2
Feb 20, 2024 4:01:44 PM

That’s exactly what happened to me and I filed a complaint against SBTPG with the Better Business Bureau and now I am going to file one on TurboTax for getting their money and not doing anything to help me get mine back. They chose to use this bank for their fees. So I feel like TurboTax is just as much to blame here. I will never use them again!!! 

New Member
Feb 21, 2024 3:23:26 PM

What’s bank do you bank with because I think this might be the case for me too, and I bank with discover 

New Member
Mar 24, 2024 4:03:19 AM

Your answers are not accurate. The banks are rejecting them with code r17, apparently this has been happening for years with your partner sbtpg. They have refused to fix the deposit coding issues. When the bank uses code r17, that says by law the refund must go directly back to the irs and is labeled as a fraudulent deposit causing our refunds to be sent to the RIVO department ultimately delaying our refunds by a minimum of 1 year. TurboTax and sbtpg act like they don't know what's going on and instead allow this to happen so they can collect an extra $30 for a returned deposit fee. The fee i had chosen to be taken out of my refund is a scam, there is nothing TurboTax can do to help you. So why did I pay that fee if there's nothing TurboTax can do? I'll be seeing you all in court.

Level 15
Mar 24, 2024 5:21:31 AM

WARNING - Due to the past history of using the Refund Processing Service with hundreds of refunds being delayed for months by the third party processor, it is Highly Recommended that you do NOT use this service.


If you cannot pay the TurboTax fees with your own funds please see if you can get a relative or friend to pay the fees with their credit or debit card.


You can still use direct deposit of the refund to a bank account (or prepaid debit card) where you are the owner of the account.

 

Better yet stop paying any fees if possible ...

 

TurboTax Free Edition is very limited. It's only for the simplest tax returns. 


If your AGI is $79,000 or less you can probably use IRS Free File.

 

And the IRS is testing a pilot program called Direct File ...  https://www.irs.gov/about-irs/strategic-plan/direct-file

Level 2
Mar 24, 2024 5:33:44 AM

Unfortunately if you have a Health savings account (HSA) and a 401K you can’t file a free return (not electronically). Every site I checked makes you pay when you add these. If there’s another site that does not please let me know. Thanks.

 

 I got a call from the Intuit office of the President after filing a claim against them on the BBB site. They acted like they were being helpful but did nothing to help. Basically looked good for the BBB but didn’t do anything they said they did. Liars till the bitter end. I bet if enough people were to sue them they’d have to stop stealing customers money.