Checked the SBTPG website and it states they are returning my refund to the IRS. After contacting my bank, it appears that they received the deposit but rejected it due to SBTPG using the wrong deposit codes (CTX, and CCD) which are business-to-business codes for deposits. My bank let me know to tell them to use "PPD" code which indicates a transfer of funds into a consumer account.
This has been a terrible experience, so please never use "pay with my refund" option when paying for your tax return through TurboTax. From my understanding, SBTPG (Santa Barbara Tax Products Group) should have contacted me and attempted to send a check instead of returning it immediately to the IRS, so not sure what workflow broke there.
I created a ticket with them, and will hopefully be able to get a response today as to what's going to happen. Will update once they respond to me.
Again, do NOT ever use the pay with my refund option. Adding a middleman was a terrible idea for me. I will learn from this mistake going forward when dealing with tax returns.
