IRS adjusted refund is different than TurboTax adjusted refund

[CrysZeli]

The IRS website indicates my tax refund was SIGNIFICANTLY adjusted and the refund was processed. However, TurboTax deposited an even lesser amount, excluding processing fees. When I called, I was told that the TurboTax system had a reported adjusted refund that was about $1000 less than the IRS report.

I am attempting to forward the IRS details and letter to TurboTax for a dispute but the representative could not give me an email or mailing address. Please help. I cannot see what the representative is referencing or upload these documents. I have never used TurboTax before and have never experience such issues filing. This is absurd.

[DawnC]

If the IRS adjusted your refund for any reason, they will send a letter explaining the reason(s) why they made the adjustment.    That letter takes about 3 weeks to arrive.   Once you receive the letter, it will have contact information and steps to take if you disagree with their adjustments.    No one at TurboTax will be able to explain any of the changes made by the IRS and they will only discuss your tax return with you or someone you have designated on Form 8821.  

If you used Refund Processing (paid your TurboTax fees with your refund), your refund goes through a 3rd party bank (SBTPG).    They receive the refund (less any IRS adjustments), take out the TurboTax fees AND their processing fee and remit the balance to you.    if there is a discrepancy with these amounts, you can contact them or access your account at this link.   

[CrysZeli]

I have used the link provided.

My IRS adjusted refund was $1,400. My 3rd party Turbo Tax deposit was $340.39. My TurboTax fee and refund fee totalled $78. TurboTax indicates my adjusted refund was only $418.49 and that my deposit is correct. This does not match the IRS adjustment.

Please provide documentation to support TurboTax's report or advise how I can submit IRS documentation.

[DoninGA]

@CrysZeli 

TurboTax does not receive any kind of tax refund, federal or state.

If you requested to have the TurboTax account fees deducted from your federal tax refund, the IRS will send the refund to a third party processor to have the fees and the service charge deducted. The third party processor will deduct the TurboTax fees plus the service charge and then attempt to direct deposit the remaining refund balance into the account that you entered on your tax return.

For the status of your tax refund you will need to contact the third party processor, Santa Barbara Tax Product Group, using their website - https://www.sbtpg.com/

Tax Products Group Contact Information - https://help.sbtpg.com/hc/en-us/articles/230084587-Contact-Information
On this page you can also scroll down and click on Submit a request

Or https://taxpayer.sbtpg.com/

Call 1-877-908-7228

[CrysZeli]

Please correct me if I am wrong but TurboTax should provide the 3rd party with the appropriate amount to refund based on the IRS approved refund, is that correct? Or are you saying the IRS sends the refund directly to the 3rd party and the 3rd party reports the adjusted return to TurboTax for records?

I am not getting a full record of what adjustments were made to my return. It does not match the IRS report. The disconnect is between TurboTaxs assigned 3rd party. Responsibility should be held with TurboTax as that is service I paid for!

[DawnC]

No, TurboTax has no communication with the 3rd party bank regarding refund amounts; none.   The only thing TurboTax gives the 3rd party is the total of your fees, so they know what to deduct.    As I explained above, if the IRS adjusted your return for any reason, you will receive a detailed letter in about 3 weeks.   Until you receive that letter, you really don't know the details of the adjustment.    But here is how the refund processing works:

You prepare your tax return using TurboTax or some type of software.   You see a refund amount of $3k - making up numbers here.

Instead of paying for your TurboTax fees with a credit card, you opt to use Refund processing.

The IRS processes your return and makes adjustments (for a reason we don't know yet) and issues your refund of $1800.

Had you paid with a cc, the refund goes to you.   But since you used refund processing, the refund goes to the 3rd party bank.   They don't know what you filed or what the IRS changed.   All they know is they are to deduct their fee and TurboTax fees and send you the rest.    They don't know if your refund should be $10K or $200.   All they can tell you is what they deducted for fees.   

Once you get the letter, only then will you have a full record of the adjustments.   The letter will not only explain the changes but give you some direction and help with disputing it if necessary.   It will have a reference number, contact information and instructions to handle disputing their actions.   I wish I could provide you that info, but we simply do not have it.  No one at TurboTax or the 3rd party bank can provide you with a full record of what the adjustments were for.   Only the IRS has that information.