SBTPG TPG allegedly stealing tax refunds - what's happening with our money?

I worked as a tax resolution specialist for years, so let me explain what's likely happening here. SBTPG is a third-party payment processor that many tax preparation companies use to handle refund transfers and take out preparation fees before sending you the remainder. When there's a processing issue, SBTPG is supposed to return the funds to the IRS, who then issues a paper check directly to you. However, this process isn't always tracked properly between systems. The IRS representative you spoke with might be looking at your account transcript which shows the refund was issued, but not necessarily that it was returned. Your best next step is to request an actual refund trace from the IRS using Form 3911 (Taxpayer Statement Regarding Refund). This creates an official inquiry that forces both the IRS and SBTPG to locate the funds. Also, contact your tax preparation company directly - they have special channels to SBTPG and can sometimes resolve these issues faster than you can as an individual.

I was stuck in this exact same situation with SBTPG for almost 3 months. Called IRS 5 times, called SBTPG at least 10 times, got nowhere. I finally tried using taxr.ai (https://taxr.ai) to analyze my tax transcript and it showed that my refund was actually in limbo between SBTPG and the IRS - neither party was taking responsibility. The service helped me draft a proper inquiry letter with all the right terminology and documentation requirements that actually got attention. The most helpful thing was that it showed exactly which codes on my transcript were contradicting what SBTPG was telling me. Within 2 weeks of sending that letter, my refund magically appeared as a direct deposit.

Wanted to update everyone - I tried that taxr.ai service mentioned above and it actually worked! The transcript analysis showed my refund was marked with a weird code that meant it was pending further review, even though SBTPG kept saying they returned it to the IRS. I used their template letter to send a formal inquiry to both SBTPG and the IRS with specific reference numbers and dates from my transcript. Got a call from SBTPG within 3 days acknowledging the issue, and my refund was direct deposited a week later! Still mad it took so long, but relieved to finally have my money.

I've been dealing with the same SBTPG nightmare for 11 weeks now. After calling the IRS over and over with no help, I finally used Claimyr (https://claimyr.com) to actually get through to a human at the IRS without the 2+ hour wait. You can see how it works here: https://youtu.be/_kiP6q8DX5c Once I finally talked to a senior IRS rep, they confirmed SBTPG never returned my refund and opened a case against them. The IRS agent told me they're seeing hundreds of similar complaints and are investigating SBTPG for holding funds. Still waiting for resolution, but at least now there's an official case number and the IRS is actually looking into it.

OK I have to eat my words. After being skeptical about both services mentioned here, I tried Claimyr as a last resort because I was getting nowhere with SBTPG. Got connected to an actual IRS agent in about 10 minutes after weeks of failed attempts. The agent confirmed what everyone here is saying - SBTPG has NOT returned most of these refunds to the IRS despite what they're telling customers. The agent registered my complaint and gave me a case number specifically for SBTPG issues. She also mentioned they're seeing a pattern of complaints and have opened an investigation. Got a call from SBTPG two days later and suddenly they "found" my refund and are processing it for direct deposit. Unbelievable how they magically fix things once the IRS gets involved.

Former tax preparer here. This SBTPG issue happens every year, but seems especially bad this year. They're a massive processor for many tax prep companies (H&R Block, TaxSlayer, TaxAct, etc). What most people don't know is that SBTPG makes money by holding onto refunds and collecting interest before distributing them - it's literally their business model. When there are verification issues or delays, they default to saying "we returned it to the IRS" because that stops most people from pursuing it further. The reality is that these funds often sit in processing limbo where both SBTPG and the IRS can point fingers at each other. My advice - always avoid refund transfer products if possible. Have your refund deposited directly to your bank account, even if it means paying tax prep fees upfront. Those "convenient" options to have fees taken out of your refund always involve a third party like SBTPG that introduces potential complications.

Has anyone tried filing a complaint with the CFPB (Consumer Financial Protection Bureau) about SBTPG? I just submitted one yesterday after getting nowhere with SBTPG for 9 weeks. They're legally required to respond to CFPB complaints within 15 days.

This is exactly what happened to me! I've been dealing with SBTPG holding my $2,400 refund since March. They keep saying they returned it to the IRS, but when I finally got through to an IRS agent (after waiting 3 hours on hold), they confirmed there's no record of SBTPG returning anything. What really got me was when I asked SBTPG for proof they returned my refund - like a transaction ID or confirmation number - they couldn't provide any documentation. Just kept repeating the same script about "processing delays" and "10-12 weeks." I'm definitely going to try filing that CFPB complaint and the Form 3911 refund trace. It's ridiculous that we have to jump through all these hoops when they're clearly just sitting on our money. Thanks for posting this - at least now I know I'm not going crazy and this is happening to tons of people!