Refund

[abigailluv23]

• I wanted to know , 
• I'm paying my turbotax bill with my refund - so once turbotax receives my refund and takes out the balance of what I owe them , then sends it to the account on file - but that account has closed , so does the rest of my refund go back to the irs - or back to turbotax bank ? 

[LindaS5247]

If you set it up to have the remaining balance of your refund deposited into your bank account and that account is now closed, your bank will reject that deposit and return the refund to the IRS. The IRS will then issue you a paper check, to the address that was on your tax return.

This will cause a delay in your refund.

If your return has not yet been accepted and processed, you could try to contact the IRS and state taxing authorities to see if they can stop it. The IRS Telephone Assistance for Individuals is Toll-Free, 1-800-829-1040.

Click here for information if you have entered the wrong bank information for your tax return. 

Click here for information on contacting your state taxing authorities.

Please feel free to come back to TurboTax Community with additional information or questions or click here for help in contacting Turbo Tax Support. 
 

[abigailluv23]

Before my income tax was processed,  I called the irs and they could not stop it because im paying turbotax bill with my income tax , so they could not , plus the irs lady said that I had to talk to turbotax about sending it paper check because it goes to turbotax first , then turbotax sends the remaining to the account that is now closed , 

So automatically hopefully what you say is true that it will go back to the irs once it's rejected and then I'll get it paper check ... 

[mesquitebean]

@abigailluv23 

You said you are paying your TurboTax fees out of your Federal refund.  In that circumstance, the IRS will send the direct deposit to an intermediary bank, where the fees are taken out.  Then that intermediary bank would try to make the deposit into your bank, where you say the account is closed.  If your bank rejects the deposit from the intermediary bank, it goes back to the "sender" of the funds, which in that circumstance is the intermediary bank.  i.e., that second direct deposit is from the intermediary bank--not from the IRS.   When the intermediary bank gets it back, one of 2 things can happen.

 Most commonly the intermediary bank would send you a check to the address on your return, less a service fee for the failed deposit.   So be careful when looking through your mail so that you don't think it's "junk mail" by mistake.    But occasionally when it goes back to the intermediary bank, the intermediary bank, for reasons unknown to me, will send it back to the IRS and let the IRS issue a paper check in the mail.

In case you end up needing to talk to them, the third-party company that administers that "pay out of refund" method is Santa Barbara Tax Products Group (SBTPG).     Scroll down on the linked page below to get their phone number.

https://help.sbtpg.com/hc/en-us/articles/230084587-Contact-information

SBTPG also has a refund lookup tool on their website, that might give you some info once the IRS releases your funds.   Use the "For Taxpayers" button at:

https://www.sbtpg.com/

One other wrinkle, although much less common:

If you voluntarily closed the bank account recently, sometimes a bank will automatically re-open the account back up if a direct deposit comes in within "X" number of days, such as  within 30 or 60 days, etc.   Check with your bank to see what their policy is in that regard.

[abigailluv23]

The card account is closed for good cannot be open again at all ... 

Plus I understand the bank in question that gets the fees for turbotax,  should send it back to irs or they send out a check themselves,  will see which one it is ... 

Plus i do have the number of the bank thats connected with turbotax to see what steps there going to take ... 

And thank you for your comment 

[mesquitebean]

You're welcome.  Good luck.