It takes the fees out of your federal refund after the IRS sends it. Your refund will go to a 3party bank first to take the fees out. But if the IRS takes too long to send your refund they will send you an email to pay the fees. If you don't pay they will automatically debit your bank account.
But there is an Extra $40 Refund Processing Service charge (45 in California) to have the fees taken out. So try to pay with a credit card and avoid the extra charge.
