Get your taxes done using TurboTax

The IRS doesn't know about the fees.  So if the IRS shows 1,000 then they reduced your 1250 refund to 1,000.  That is before the fees come out.  So they only sent 1,000.  Then the 150 fees are deducted Leaving you the 850.  The IRS will mail a letter saying what they changed.