Some tax filers have reported seeing a deposit from TPG Products and want to know why this appeared. Here's what we know about the deposit.
By Kathryn Underwood
Mar. 7 2023, Updated 2:52 p.m. ET
In this article
What is a TPG refund and why did I get one?
What does TPG Products do?
Will my full tax refund be delayed in 2023?
Many tax filers are scratching their heads after receiving a deposit labeled “TPG Products.” The IRS encourages people to file tax returns electronically and select direct deposit options. However, if you didn’t actively work with TPG Products, it’s understandable to wonder, “Why did I get a deposit from TPG Products?”
This was a common issue among tax-filers during the 2022 tax filing season and appears to have snuck up again this tax season. Both Intuit, the maker of TurboTax, and TaxSlayer.com have been fielding questions in their online forums since early 2022 about why “TPG Products” is showing up on tax forms. TPG Products refers to Santa Barbara Tax Products Group.
Keep reading to find out why you may have received a deposit from TPG Products recently.
What is a TPG refund and why did I get one?
Santa Barbara Tax Products Group, or SBTPG, is also sometimes abbreviated as "TPG Products" on tax forms. The TaxSlayer.com online support page states that it's used for processing tax refunds for people who choose to have their tax preparation fees deducted from their refund.
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TaxSlayer states that if you filed using their software, once the IRS releases your refund to TPG, the program preparation fees are deducted.
The Intuit website has a question posted on March 8, 2022. The user noted, “I received a deposit from TPG Products. A search shows this is associated with Intuit. Is this legit? If so, why is this a partial deposit and where is the rest?”
In February 2022, similar issues were posted on Intuit.com. A respondent said that TurboTax knew about the issue and would issue a refund if the charges for tax preparation were higher than intended. However, TurboTax hasn't posted an official response.
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Several other comments mention similar issues — seeing a deposit from TPG Products, but the deposit isn't their expected tax refund amount. One other user (not officially affiliated with Intuit) responded that tax refunds are processed by a third-party company, which matches up with information about Santa Barbara Tax Products Group.
Woke up to a notification my IRS Federal Refund was in my account 👍🏻
Used Turbo Tax Submitted 1/24/22
Notification line on the Deposit was: Tpg Products
If you believe there's a discrepancy with your TPG Products deposit or the fees that were deducted for tax preparation services, you can reach SBTPG at 877-908-7228 or you can contact the tax prepare you filed your return with. The company also goes by the name of Civista Bank.
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What does TPG Products do?
According to Santa Barbara Tax Products Group, it “takes all associated fees out of your tax refund, making it easy to pay for tax preparation.” The company also says that your tax refund is available the same day it's issued by the IRS, so there shouldn’t be any delays.
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However, given the number of frustrated comments online with tax preparation companies, it seems that the fees weren’t adequately communicated to people before they filed their taxes.
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Will my full tax refund be delayed in 2023?
After going through the process of preparing your annual tax return, you naturally want to receive your full tax refund and get it promptly. Unfortunately, the IRS may process some returns later than others depending the tax credits being claimed, and some people won’t receive the amount they expected in their tax refund.
This is usually true for those who have their tax preparation fees deducted from their total refund.
The IRS has struggled to meet taxpayer expectations. Still dealing with the large backlog of returns from previous years, in addition to added complexities due to changes in tax credits and deductions, the IRS still may not provide full tax refunds as quickly as most people would prefer.
However, if you file your return before April 2023 (which is when an influx of returns are being filed) and request to have your refund direct deposited, there shouldn't be much (if any) of a delay.
Santa Barbara Tax Products Group is used to process your refund when you elect to have your tax preparation fees deducted from your refund. Therefore, your review page is showing a Direct Deposit to them.
The IRS may request more information in order to complete the review and release the refund. The IRS or BFS may have offset the refund to pay off an outstanding debt - The IRS and/or the Bureau of the Fiscal Service (BFS) will mail a letter within a few weeks with details about the debt and amount collected.
TPG takes all associated fees out of your tax refund, making it easy to pay for tax preparation. No upfront fees. Tax preparation fees are paid from the refund so there's nothing to pay up-front 1. As fast as e-filing. Tax refund is available the same day the IRS issues the automated payment.
BFS will send you a notice if an offset occurs. The notice will reflect the original refund amount, your offset amount, the agency receiving the payment, and the address and telephone number of the agency. BFS will notify the IRS of the amount taken from your refund once your refund date has passed.
Once the IRS or State deposits a Taxpayer's refund, all associated fees are deducted from the refund amount and your tax preparation fees are direct deposited into your bank account on file with TPG. The funds normally arrive in your bank account the next business day (weekends, Federal Holidays excluded).
Taxpayers can now log on to taxpayer.sbtpg.com to view the details of their refund disbursem*nt processed by TPG. Details available include refund information and any fees that were withheld from the refund prior to the check issuance or refund processing.
In certain cases, your bank may reject your tax refund proceeds with a code that requires TPG to return your funds to the originator (IRS). Due to laws that govern electronic payments, TPG cannot refuse to honor the instructions from your bank or intervene on your behalf.
When IRS or state tax funding has been received, TPG releases the funds starting at 2:30 PM Pacific time. It can take an additional 1-2 hours to process and for the disbursem*nt records to reach your tax software.
According to the TPG website, it usually takes 1 to 2 days before a refund is scheduled to arrive for the Refund Transfer to be processed. However, this may vary depending on the IRS website, your bank account, and other factors.
The IRS will send you a CP237A if the tax refund check they sent you was never deposited. If you received this notice, call 1-800-829-0115 to claim your refund. In most cases, you will get your refund within 30 days of contacting the IRS.
If you need more information on the offset, contact the Bureau of the Fiscal Service at 800-304-3107 (or TTY/TDD 866-297-0517) to find out where Treasury applied your tax refund.
Here are the most common examples of past due debts that can offset (reduce) your income tax refund: Past due child support. Federal agency non-tax debts. State income tax debt.
If you owe money to a federal or state agency, the federal government may use part or all of your federal tax refund to repay the debt. This is called a tax refund offset. If your tax refund is lower than you calculated, it may be due to a tax refund offset for an unpaid debt such as child support.
TPG is located in San Diego, California. UltimateTax has been a partner with TPG since 2006. The fees with TPG are $44.95 for the bank fee. Other fees include fees from the transmitters and the service bureau.
Santa Barbara Tax Products Group, LLC (SBTPG) is the bank that handles the Refund Processing Service when you choose to have your TurboTax fees deducted from your refund. This option also has an additional charge from the bank that processes the transaction. How can I see my TurboTax fees?
TPG collects a processing fee of 25% of the amount debited and the remainder is deposited into the tax professional's bank account upon completion of the Auto Collect program. A fee is only charged to tax professionals for tax preparation fees that are successfully collected.
Founded in 1991, Santa Barbara Tax Products Group (TPG) became a Green Dot company in 2014. TPG serves consumers nationwide with tax-related financial products and services that provide value, are fairly priced and satisfy consumer need.
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