If the IRS reduces your refund and it is not enough to cover your fees or the IRS is holding your refund for over 36 days, then you end up owing fees to TurboTax. The amount debited is the 3rd attempt to recover the fees.
What happens if the IRS reduces my refund to the point where it no longer covers my TurboTax fees?
If you get hit with a refund offset, what's leftover might not be enough to cover your fees. Here's what happens next:
- We'll send an email with instructions on how to pay your TurboTax fees (minus the Pay With My Refund fee, if any) by a certain date.
- If the fees remain unpaid by the specified date, we'll send two more follow-up emails asking that you either pay or request a deferment to prevent the fees from being automatically debited from your bank account.
- Finally, if you still haven't paid by the requested date, we'll send a final email letting you know that we're debiting the fees (minus the Pay With My Refund fee, if any) and that the auto-debit process cannot be stopped.
The same sequence of events occurs if the IRS is still holding your refund 36 days after your original estimated refund date, except that we'll also debit the Pay With My Refund fee (if any) in Step 3.
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