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JoeNJ525
Level 1

Has anyone experienced issues with direct deposits of tax refunds being denied by the receiving bank due to ABA number issues and the funds being held up at TurboTax?

 
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Accepted Solutions
Critter-3
Level 15

Has anyone experienced issues with direct deposits of tax refunds being denied by the receiving bank due to ABA number issues and the funds being held up at TurboTax?

Ok ... simply put ... the refund goes from the IRS  to the processing bank ... at no time does it go to TT.

 

Next the processing bank withholds the TT program fee & their processing fee  and  sends the remainder of the refund to the taxpayer.  If the DD is refused by your bank then the processing bank  can convert the deposit to a paper check mailed to the address you had on the tax return and it does come in a plain white envelope with only the return address on it which can be mistaken for junk mail.  The processing bank can also hold the money for any reason they deem necessary and may require you to provide them with some extra security details before the funds can be released.  Your only option is to contact the processing bank as already mentioned in this thread. And  after a certain time passes  the processing bank may send the remainder refund back to the IRS. 

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7 Replies
xmasbaby0
Level 15

Has anyone experienced issues with direct deposits of tax refunds being denied by the receiving bank due to ABA number issues and the funds being held up at TurboTax?

Your tax refund was not sent to TurboTax.   TurboTax does not handle your refund at all.

 

 

Santa Barbara Tax Products Group, LLC  (SBTPG) is the bank that handles the Refund Processing Service when you choose to have your TurboTax fees deducted from your refund. This option also has an additional charge from the bank that processes the transaction. 

You can contact them SBTPG, toll-free, at 1-877-908-7228 or go to their secure website www.sbtpg.com 

https://ttlc.intuit.com/questions/2580357-who-provides-the-refund-processing-service

 

 

 

https://ttlc.intuit.com/community/refunds/help/who-provides-pay-with-my-refund/00/26410

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
JoeNJ525
Level 1

Has anyone experienced issues with direct deposits of tax refunds being denied by the receiving bank due to ABA number issues and the funds being held up at TurboTax?

I spoke with the IRS who insisted that the funds if they were not accepted by the bank due to an incorrect ABA# where being diverted to TurboTax and this issue is not uncommon.  

xmasbaby0
Level 15

Has anyone experienced issues with direct deposits of tax refunds being denied by the receiving bank due to ABA number issues and the funds being held up at TurboTax?

@JoeNJ525 The agents at the IRS do not always understand how "refund processing" works when you choose to have your TurboTax fees deducted from your federal refund, so they may think---incorrectly--- that the refund went to TurboTax.   It did not NOT go to TurboTax.   When you choose to have your fees deducted from your refund, the refund goes to the third party bank.   That bank takes the fees out of your refund and sends the rest of your refund to your account.   If there has been a problem with that process, you hav to deal with the third party bank---as already detailed in the reply you received earlier.  TurboTax does not get your refund.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
xmasbaby0
Level 15

Has anyone experienced issues with direct deposits of tax refunds being denied by the receiving bank due to ABA number issues and the funds being held up at TurboTax?

@JoeNJ525 

If you chose to have your TurboTax fees deducted from your federal refund, then the deposit goes back to the third party bank that handles refund processing, and that third party bank will mail you a check.   It will come in a plain envelope via first class mail so make sure you open all mail and do not assume anything is junk mail without opening it.

 

What is Refund Processing Service?

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
JoeNJ525
Level 1

Has anyone experienced issues with direct deposits of tax refunds being denied by the receiving bank due to ABA number issues and the funds being held up at TurboTax?

So even if you opt for Direct Deposit, TPG will issue a check.  I just went on the TPG website and the Account overview indicated that payment was to be made by Direct Deposit.  Thanks for information.  I'm on hold with TPG now, let's see what happens.  Will let you know.

xmasbaby0
Level 15

Has anyone experienced issues with direct deposits of tax refunds being denied by the receiving bank due to ABA number issues and the funds being held up at TurboTax?

@JoeNJ525 If the direct deposit was refused by your bank, then it went back to the third party bank.   Then the third party bank has to issue and mail you a check.   If there are any additional problems--like your use of an incorrect address on your tax return---it gets pretty complicated and they will put you through all kinds of identity verification before they mail you a check.   You must deal with the third party bank yourself.  TurboTax is out of the loop.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
Critter-3
Level 15

Has anyone experienced issues with direct deposits of tax refunds being denied by the receiving bank due to ABA number issues and the funds being held up at TurboTax?

Ok ... simply put ... the refund goes from the IRS  to the processing bank ... at no time does it go to TT.

 

Next the processing bank withholds the TT program fee & their processing fee  and  sends the remainder of the refund to the taxpayer.  If the DD is refused by your bank then the processing bank  can convert the deposit to a paper check mailed to the address you had on the tax return and it does come in a plain white envelope with only the return address on it which can be mistaken for junk mail.  The processing bank can also hold the money for any reason they deem necessary and may require you to provide them with some extra security details before the funds can be released.  Your only option is to contact the processing bank as already mentioned in this thread. And  after a certain time passes  the processing bank may send the remainder refund back to the IRS. 

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