Why did Turbo Tax partner with TPG =SCAM? (2025)

‎June 7, 20195:03 PM

Several years ago, TPG was tricked by scammers into changing the deposit accounts for some customers, resulting in refunds being stolen. So they take extra precautions now to make sure that a customer's refund goes to the customer only. Plus the USA Patriot Act places rules on when a bank can open an account for someone; sometimes TPG needs additional verification before they can open an account to collect your refund, and sometimes they need additional verification to make sure they are paying a refund to the right person.

If you choose to pay $40 extra to deduct your Turbotax fees from your refund, instead of paying them up front with a credit card or debit card (that you can buy for $5 and load with cash at any drug store) then you can put up with extra verification to make sure your refund is paid to the right person. You can eliminate TPG from the equation by paying the fees up front and taking a check or direct deposit from the IRS directly into your own bank account.

You've used the service for 25 years and this is the first year you've had issues?Or this happens every year?

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The "convenience fee" for paying from your refund is not a TurboTax fee but a separate bank fee for making an unsecured loan to you to pay the TurboTax fees from your refund.That fee is from the Santa Barbara Tax Products Group (SBTPG)

Unsecured loan rates can be high because if you do not actually get the refund (the IRS denies it or there is a tax offset levied) then it can be difficult or impossible for the bank to get it's money back so the high fees reflect the risk involved.

Other payment methods such as a pre-paid credit card are usually much cheaper and does not delay the refund by being sent to the SBTPG bank first.

Contact the SPTPG this way

<a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/questions/3129412-why-is-my-federal-refund-on-hold-with-santa-barbara-tax-pr...>

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

Several years ago, TPG was tricked by scammers into changing the deposit accounts for some customers, resulting in refunds being stolen. So they take extra precautions now to make sure that a customer's refund goes to the customer only. Plus the USA Patriot Act places rules on when a bank can open an account for someone; sometimes TPG needs additional verification before they can open an account to collect your refund, and sometimes they need additional verification to make sure they are paying a refund to the right person.

If you choose to pay $40 extra to deduct your Turbotax fees from your refund, instead of paying them up front with a credit card or debit card (that you can buy for $5 and load with cash at any drug store) then you can put up with extra verification to make sure your refund is paid to the right person. You can eliminate TPG from the equation by paying the fees up front and taking a check or direct deposit from the IRS directly into your own bank account.

@SibangelPlease visit the Help Article below for possible reasons why your refund is lower than expected. Sinceyour refund was deposited by Santa Barbara Tax Group, please reach out to SBTG Customer Carefor more information if the refund offset does not apply to your situation.

Why is my direct-deposited refund or check lower than the ...

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