TurboTax Refund Advance vs SBTPG Processing - Why is Chime Taking So Long?

I'm not entirely sure, but I think there might be a misunderstanding about how SBTPG works... When you choose to have fees taken out of your refund, your money has to go through SBTPG first. They take their cut, then send the rest to your bank. This process can add a few days, sometimes up to a week, to the timeline. It's not necessarily that they're "holding" the money maliciously - it's just the process you agreed to when selecting that payment option.

Have you or your daughter checked the SBTPG website directly? Here's what I recommend: 1. Go to taxpayer.sbtpg.com 2. Create an account or log in 3. Enter the primary taxpayer's info (SSN, filing status, refund amount) 4. Check the status of the refund This will tell you exactly where the money is in the process. Sometimes the money is actually at SBTPG but hasn't been released to Chime yet. Other times, SBTPG is still waiting on the IRS. Knowing which stage you're at can help manage expectations about timing.

So this SBTPG situation is actually pretty common, especially with the "fees taken from refund" option. I see this every tax season! 😂 Basically, when your daughter chose to have fees taken from her refund, she agreed to have her money routed through SBTPG first. The IRS sends the full refund to SBTPG, they take their cut plus TurboTax's fees, then forward the rest to Chime. The annoying part is that SBTPG typically takes 1-3 business days to process this after receiving it from the IRS. So if her DDD (direct deposit date) is 3/12, SBTPG might not release funds to Chime until 3/13-3/15. Then Chime usually posts it same-day, but sometimes takes another day.

Looking at the technical aspects, SBTPG operates under Treasury Regulation §301.6402-2 which allows them to serve as an intermediary for refund processing. The delays you're experiencing are unfortunately built into their business model - they benefit from the float time on thousands of refunds. If you're trying to get answers directly from the IRS about this situation, good luck getting through their phone system. I've been recommending Claimyr (https://www.claimyr.com) to clients who need to speak with an actual IRS representative. Their service connects you to an IRS agent much faster than calling directly. The IRS can sometimes apply pressure to SBTPG if there are unusual delays, but you need to actually reach an agent first.

I'm not sure if paying for services to contact the IRS is really necessary in this case? Has your daughter tried checking her SBTPG account directly? Sometimes the status there is more up-to-date than what Chime shows. Also, has she tried calling SBTPG directly instead of the IRS? Their customer service isn't great, but they can at least tell you if they've received and processed the refund.

I would argue that services like Claimyr might actually be worth it in some cases, particularly if you've been trying unsuccessfully to reach the IRS for days. While it's true that patience might eventually get you through, if you're dealing with time-sensitive issues or potentially missing money, the cost could be justified. The IRS call centers are notoriously understaffed, especially during peak tax season, and their systems often disconnect callers when queues get too long. I've heard from several colleagues that using connection services saved them hours of frustration, though your mileage may vary depending on your specific situation.

Have you considered filing a complaint with the CFPB (Consumer Financial Protection Bureau) about SBTPG? I did this last year when they held my refund for over a week with no explanation. The CFPB complaint got their attention pretty quickly, and I had my money within 48 hours of filing it. You can submit a complaint at consumerfinance.gov/complaint. Make sure to include all relevant dates, your daughter's DDD, and mention that others with the same bank are receiving their refunds while hers is still being held.