Refund with fees/loan going to wrong account, deposit scheduled for Monday - will it be rejected back to preparer?

Yes, this is fairly common. When you get a refund advance or choose to have fees taken out, the money doesn't go directly from the IRS to your bank. It goes to the tax preparer's bank partner first (like SBTG - Santa Barbara Tax Products Group), they take out their fees, then forward the rest to you. If your bank account is closed, the deposit will indeed be rejected and returned to the sender (the tax company's bank). They should then be able to issue you a check, but it typically takes 10-14 days after the rejection for this process to complete. Some important things to know: - The rejection usually happens within 1-3 business days - Once rejected, it goes back to the tax preparer's bank partner - They'll need to process it and issue a check - This is different than if you had direct deposit straight from the IRS (which would be a much bigger headache) I'd recommend calling your tax preparer in about a week if you haven't heard anything by then.

Just went through a similar situation with my tax refund and was completely lost trying to figure out what was happening. I tried calling the IRS and could never get through. I finally used taxr.ai to understand my transcript situation and it explained the whole refund path including the SBTG middleman situation. It showed exactly where my money was and when it would arrive. Saved me so much headache trying to decode all those confusing codes and dates! https://taxr.ai

Had a similar issue last year. Needed to talk to someone ASAP about my refund that was stuck in limbo. Was going crazy trying to get through to the IRS and finally used Claimyr.com to get a call back from an actual agent! The agent confirmed exactly what would happen with my rejected deposit and I was able to get everything sorted out way faster than just waiting around. Honestly the best money I ever spent to get answers directly from the source instead of stressing for weeks.

I had this happen 2 years ago and yes the check went back to my tax preparation company. BUT it took almost 3 weeks before they actually called me to come pick up the check. I think they were hoping I'd forget about it or something.make sure you stay on top of them and call to check on it regularly.

Sorry but your tax lady gave you bad advice. She should have taken care of this BEFORE the refund was processed. Now you're gonna have to wait for SBTG to process the rejection, which can take a while. I'd be calling them every other day to check on this if I were you. Some of these tax places are super disorganized.In the future, always double check all account info before filing, and don't close accounts until after you get your refund!

you need to get in touch with SBTG (Santa Barbara Tax Products Group) directly. They're the middleman that handles the refund and fee deduction. Your tax preparer doesn't actually get the money directly from the IRS - SBTG does and then distributes it after taking fees. Call SBTG customer service at 800-901-6663 to track the status once the deposit gets rejected.

Why do people still use tax preparers that do this refund advance / fee withdrawal stuff? it complicates everything so much and they charge crazy fees. Just file with freetaxusa or something similar and pay upfront (usually way cheaper anyway). Then you deal directly with the IRS for your refund.

I work for an accounting firm (not one of the storefront places). If your DD is rejected, it will go back to SBTG, not directly to your tax preparer. Then SBTG will contact your preparer, who will need to request a check to be issued. The whole process takes about 2-3 weeks typically. Your tax preparer should be keeping you updated throughout, but honestly a lot of them drop the ball on communication.

Your tax preparer is technically correct but she's downplaying how long this could take. When a DD is rejected, it doesn't just instantly go back to the preparer. It goes to SBTG (the bank that handles the transaction), then they notify the preparer, then the preparer has to fill out some paperwork, then SBTG issues a check to the preparer, THEN you can pick it up. Each step can take several days. Be prepared to wait 2-4 weeks total.

Whatevrr you do, DON'T agree to any more fees from your tax preparer to "expedite" this process. Some shady preparers will try to charge extra to "rush" the replacement check.

SAME THING happened to me in June. Took exactly 17 days from scheduled deposit date until I got my hands on the check. Just be patient and keep calling your tax office once a week. Don't let them forget about you!

I'm in the EXACT same situation right now lol. My deposit date is Wednesday and my account is closed. Tax lady told me the same thing. I'm gonna follow this post to see how it works out for you. Keep us updated please!

What's extra annoying is that if you had gotten direct deposit straight from the IRS (without the middleman), you could have just called the IRS and updated your bank info. That's what I did last year. But because you went through a tax preparer with fees taken out of refund, now you're stuck dealing with them and SBTG.

Make sure to get everything in writing from your tax preparer about when you can expect the check. Some of these places will give you the runaround. If they say "2 weeks" ask them to write down exactly when you should call if you haven't received it by then.

Most folks saying 2-3 weeks here are accurate based on my experience. BUT if you wanna know exactly what's happening with your refund, call the IRS directly. I tried forever to reach an agent and finally used claimyr.com which got me a callback from an actual agent. The agent was able to see exactly where my refund was in the process and told me when I could expect it to be returned to SBTG. Made me feel so much better having real info instead of guesses from reddit.