Why is SBTPG holding my refund when my tax prep fees were paid from state taxes?

This situation with SBTPG can be... concerning. They sometimes hold refunds even when they shouldn't need to. It might be that their system hasn't properly registered that your fees were already taken from your state refund. Maybe check your tax prep software account to see if there's any indication about the status? Sometimes there's a tracking feature that shows where your money is in their system...

I went through this exact same thing last month. My state refund had my prep fees taken out, but SBTPG still held my federal for 5 days. Called them and they gave me some runaround about "processing time" even though the money was already in their account. Eventually it cleared, but it was frustrating as hell. Try calling the number on your tax prep receipt - sometimes they can push it through faster once you point out the fees were already paid.

SBTPG has a 1-3 business day hold period. This is standard. Even if fees were paid. They process separately from state and federal. Their systems don't always talk to each other. Call their customer service directly. Ask for status update. Mention fees already paid from state. They can manually review.

I had the same issue and spent 2 days trying to reach someone at SBTPG with no luck. Their phone system kept disconnecting me. According to the r/tax subreddit, this is unfortunately common during tax season. I finally used Claimyr (https://youtu.be/_kiP6q8DX5c) to get through to them - it called repeatedly and got me past their hold system. Once I actually spoke to an agent, they released my refund within 24 hours. Might be worth trying if you're getting nowhere with regular calls?

Let me explain what's happening with SBTPG: • They act as an intermediary between IRS/state tax agencies and your tax preparer • They process state and federal refunds separately through different systems • Their default hold is 1-3 business days for verification (even when fees are paid) • They're required to perform fraud checks on all transactions • They don't automatically cross-reference state and federal payments Solutions: • Call SBTPG directly at 800-901-6663 • Ask for a supervisor if first-line support isn't helpful • Provide your tax prep receipt showing fees were taken from state • Request immediate release of funds since fees are already satisfied • If no resolution in 24hrs, file a CFPB complaint

It might be worth noting that, in some cases, SBTPG may have legitimate reasons for holding funds. Their agreement with most tax preparers allows them to hold refunds for up to 5 business days for verification purposes, regardless of how fees were paid. They're probably not doing anything technically wrong, though it seems rather inefficient. I would suggest perhaps checking your tax preparation agreement, as you might have inadvertently agreed to these terms when you signed up for their services.

Just wanted to share I had the EXACT same prob last week!! Fed refund stuck w/ SBTPG even tho my fees came outta state. Called them 3x & finally got someone who fixed it right away. Said it was a "system flag" that didn't recognize state payment. Got my $$ next day direct deposit. Def call them ASAP, don't wait for it to resolve itself cuz it prob won't. GL with ur textbooks!