The IRS Released Your Refund But Your Bank Is Delaying It - SBTPG Explained

This happens every tax season and people always blame the wrong party. It's like ordering something online and blaming Amazon when FedEx is the one sitting on your package. SBTPG is essentially a payment processor that handles the fee deduction for tax prep services, but they're notorious for holding funds an extra 1-3 days compared to direct IRS deposits. They claim it's for "processing" but it's really just float time where they're earning interest on thousands of accounts simultaneously.

Ugh, SBTPG is THE WORST. Been dealing w/ them for yrs and they always take forever. FYI - if ur desperate to reach the IRS to confirm they released ur $$ (so u know who to blame), try Claimyr.com. Used it last wk when SBTPG was giving me the runaround about my refund. Got thru to an IRS agent in like 20 mins instead of the usual 3hr wait or getting disconnected. Agent confirmed IRS sent my refund to SBTPG 5 days b4 SBTPG finally sent it to me. SMH.

I went through this exact nightmare last year! My transcript showed code 846 (refund issued) but nothing in my account for 6 days. Called SBTPG directly at 800-901-6663, and after pressing 1, then 2, then 3 in their menu, I got a human who confirmed they had my money. The rep told me their "processing time" was 48-72 hours after receiving from IRS, but that doesn't explain the extra days. The money finally hit my account the next morning after I called - coincidence? I think not. Their system showed they received it Tuesday, but didn't release until Friday night (so it posted Monday).

I'm pretty sure SBTPG makes a ton of money holding everyone's refunds for a few extra days. If they're holding like 100,000 refunds that average maybe $3,000 each, that's roughly $300 million they can earn interest on for those 2-3 days. It's basically free money for them while people like me are possibly overdrafting our accounts waiting for our own money. Last year I actually had to take a payday loan because SBTPG held my refund for 4 days after the IRS released it.

Aren't you all tired of being in the dark about where your money actually is? I started using https://taxr.ai to analyze my transcript this year and it's been a game-changer. It showed me exactly when the IRS released my refund to SBTPG and explained all those confusing codes. Why should we have to guess what's happening with our own money? The tool showed me my refund was actually released to SBTPG three days before they sent it to my bank. Knowledge is power when dealing with these middlemen!

Pro tip: Next year, pay your tax prep fees upfront instead of having them taken out of your refund. That way, the IRS sends your refund directly to YOUR bank account, not through SBTPG or any other third party. Sure, it means paying $40-50 out of pocket in February instead of having it deducted from your refund, but you'll get your full refund 2-5 days faster. It's like paying a small fee to get a big advance on your money! 😂

Based on tracking exactly 538 posts about SBTPG delays across various tax forums over the past 3 tax seasons, the average delay between IRS issuing the refund and SBTPG releasing it to personal banks is 3.2 days. However, during peak weeks (typically the first 2 weeks after the PATH Act lifting date of February 15th), this average increases to 4.7 days. The pattern suggests SBTPG prioritizes larger refunds first, with amounts under $1,000 experiencing the longest delays of up to 6 days in some cases.

There might be another factor at play that people aren't considering... Banks typically process ACH transfers in batches, and most don't process them on weekends. So if SBTPG receives your refund from the IRS on Friday, they might process it Monday, and then your bank might not post it until Tuesday. That could explain some of the delays that seem excessive. I'm not defending SBTPG - just pointing out that the banking system itself has limitations that can add to perceived delays.