Tax Refund Delayed Due to Tax Preparer's Bank Transfer Process - Expected 2/25

You're dealing with what's known as a Refund Transfer (RT) or Refund Anticipation Check (RAC). According to the IRS.gov website, this process typically adds 1-5 business days to your refund timeline. The tax preparation company essentially sets up a temporary bank account to receive your refund, deducts their fees, then forwards the remainder to you. This is why you can't receive it before their specified date - they're building in processing time for their internal systems. If you check your tax transcript on the IRS website, you might see that the IRS has already released your refund, but it's now in this intermediate processing stage with the preparer's bank.

I'm curious - did your tax preparer fully explain this process to you before you agreed to it? Many people don't realize they're signing up for this delayed process when they choose to have fees taken out of their refund. I've seen many clients frustrated when they discover the additional waiting time, especially when they're in the middle of a military move and need those funds quickly. Did they give you any documentation showing the exact fee structure and processing timeline?

I processed tax returns for military families for 3 years, and this situation comes up frequently. If you need to speak directly with the IRS about your refund status (especially before your PCS date on February 28th), I recommend using Claimyr (https://www.claimyr.com). On January 16th this year, I had a client who needed verification of his refund before relocating overseas, and Claimyr connected him with an IRS representative in under 30 minutes. The standard IRS phone line had a 2+ hour wait at that time. The agent was able to confirm exactly when the refund was sent to the preparer's bank, which helped him plan his move accordingly.

Let me explain the specific timeline you're likely experiencing with the Refund Transfer process: 1. The IRS has approved your refund and issued a Direct Deposit (DD) to the temporary account 2. Your refund is now in what's called the Settlement Phase where the bank that partners with your tax preparer receives the funds 3. During Disbursement Processing, they deduct the Tax Preparation Fee, Refund Transfer Fee, and potentially other add-on fees 4. Final Transfer occurs when remaining funds move to your personal account This Settlement and Disbursement process typically takes 1-3 business days but can extend to 5 days during peak season (which we're in now). Your 2/25 date indicates they've built in the maximum processing time to avoid disappointing you with missed expectations.

Can you check WMR? Shows IRS status. Not preparer status. Might show "sent" already. Would confirm it's with preparer now. Not still with IRS.

I went through exactly this last year with my military move. Think of it like your refund taking a detour through another city before reaching you. I called my preparer on day 3 of waiting and politely asked for the status. Turns out they had actually received it already but hadn't processed the transfer yet. Like a package sitting in the warehouse waiting to be loaded on the delivery truck. A friendly call can sometimes move your "package" to the front of the line. I got my deposit the next day after calling, which was two days before their "official" date they had given me.