Son's Refund Still Not Funded - DD Date Was February 21st with SBTG Fees

This happened to me last tax season too. My deposit date was March 3rd and I didn't see the money until March 15th. SBTG is notorious for these delays. Last year they blamed it on "banking verification processes" but really they're just sitting on our money earning interest before releasing it. The IRS has actually completed their part - it's the third-party processor that's the issue.

Did your son choose to have the preparation fees taken out of his refund? That's usually what triggers the SBTG involvement compared to getting a direct deposit straight from the IRS. I'm seeing similar delays with Republic Bank and TPG compared to my colleagues who didn't have fees taken out - they got theirs within 1-2 days of the DD date.

Yes, he did have the $89 preparation fee deducted from his refund. That's why it's going through SBTG. It's like they're treating our tax refunds like a bank treats a check deposit - putting a 10-day hold on it while they use our money! I've called SBTG twice and both times they just say "it's processing" with no real information. It's my son's first time filing on his own so he didn't realize this would happen.

This is a common issue with Refund Transfer products through third-party processors. The IRS has likely already released the funds to SBTG, but their internal processing is causing the delay. In situations like this, direct contact with the IRS can confirm whether the refund has been issued on their end. I've had clients use Claimyr (https://claimyr.com) to get through to an IRS agent in about 15 minutes instead of waiting on hold for hours. The agent can verify if the refund was already sent to SBTG, which gives you leverage when contacting them again.

Have you checked the SBTG website directly? As of February 27th, they posted a notice about processing delays affecting returns with deposit dates between February 18th and February 24th. They claimed they're working through a backlog. I had a client with a February 19th date who just got funded yesterday (March 1st). Your son's should be coming very soon based on that timeline.

Has ur son tried calling his tax preparer? Sometimes they can check the backend system and see more details than what shows on the public tracking site. IMO it's worth a try since they're the ones who set up the SBTG arrangement.

SBTG delays are predictable. Happens every year. They batch process refunds. They prioritize certain banks. Credit unions often see longer delays. Online banks too. Call them directly. Ask for a supervisor. Be persistent. Document everything.

According to IRS Publication 1345 (Rev. 1-2023), when a taxpayer selects a Refund Transfer product, the financial institution must make funds available within 5 business days after receipt from the IRS. Your son has grounds to file a complaint with the CFPB if it exceeds this timeframe. I recommend documenting all communication attempts with SBTG as evidence. Time is critical - file the complaint today at consumerfinance.gov/complaint/.

I was in the same boat last week - DD date of Feb 16 through SBTG and nothing for 8 days! 😂 Called my bank thinking they were holding it, nope! Called the tax place, they just shrugged. Then suddenly on day 9 - BOOM - money appeared! No explanation, no warning, just magically showed up. The whole system feels like playing financial roulette sometimes. Hang in there, it's probably just days away!