[Cody Dawg]

Okay, so this is a head's up to all of you online income tax refund filers.

Be aware that the IRS uses Santa Barbara Bank & Trust for automatic deposits into your account. They charge about $20 for the "service" and there is an online filing fee of roughly $20 also.

Now, this is the deal: When you go online to file your refund it will say, "Please expect your refund in approximately 10 days." You follow the instructions and you're thinking, "10 days isn't that bad, this is a good deal."

HOWEVER, what Santa Barbara Bank & Trust and the IRS do not tell you is that Santa Barbara Bank & Trust ONLY DEPOSITS INTO ACCOUNTS *ONCE* A WEEK!

So, if it doesn't get deposited into your account for *some* reason, they tell you to "wait another week for the next weekly deposit date."

Then guess what? It just MIGHT miss the 2nd weekly deposit date.

Now, is this a coincidence or what? We have a rather large refund. I just called the IRS and they told me that our money was received by Santa Barbara Bank & Trust on the 3rd!

Yet Santa Barbara Bank & Trust is now telling us to wait until the 25th and see if it goes into our account then and until then, "there is nothing that Santa Barbara Bank & Trust can do."



That means that they are keeping our money - because they supposedly only deposit ONCE A WEEK - and earning interest on it.

And, guess what else? No, they are not going to transfer that interest to us.

The upshot is that IF the money goes in on the 25th, Santa Barbara Bank & Trust will have held onto our money for about 3 weeks.

Going back to the IRS? THEY CANNOT REISSUE OUR REFUND. So, basically, we are at the mercy of the bank and when they "decide" to put the money into our account - money which only goes in once weekly.



Don't say you weren't warned.

:

[E's Lil Theorem]

Originally posted by Cody Dawg:
Okay, so this is a head's up to all of you online income tax refund filers.

Be aware that the IRS uses Santa Barbara Bank & Trust for automatic deposits into your account. They charge about $20 for the "service" and there is an online filing fee of roughly $20 also. ....

Whoa, that sucks. If you go through the IRS website, there's no filing fee for e-filing. Do you have the option of the IRS sending you a regular check through the mail to avoid the bank fee?

[Mrjinglesusa]

Thanks for the heads up. This is why I have our accountant file our taxes for us. Then again, we always OWE money.

[Cody Dawg]

I should have mentioned that we used Turbo Crap - er, Turbo Tax.

I was just told that the IRS uses Santa Barbara Bank & Trust regardless of which way you file online. Maybe I'm wrong, but that's what I understood.

It says that Santa Barbara Bank & Trust charged us $19.95 for their crappy "service" to hold OUR money and that there was a "electronic filing transmission fee and or service fee for web users" for $14.95.

BUT, the point is that this could happen to ANYONE.

I'm refiling right now - doing the paperwork - and mailing it in. Don't know why, because it is probably an exercise in futility, but maybe I'll get the refund SOMEDAY.

[Cody Dawg]

Yep, the IRS agent just confirmed that the IRS uses Santa Barbara Bank & Trust for direct deposit and that the $14.95 fee is for direct deposit.

She doesn't know why we're not getting our refund either.



They gave it to SBBT a long time ago.

This is almost criminal. It's like theft or something.

[Mrjinglesusa]

That really sucks big time. Best of luck and I hope you get your refund soon. Not sure I would file again though - you could end up with more of a headache than you already have.

[Kenneth]

well.. I never used those software. Meanwhile, my mother mailed my filled out tax form to the IRS and she did check the direct deposit box for me. Since I rather have a check in the mail, I asked her why? She told me that's the way IRS does now.

[E's Lil Theorem]

Originally posted by Cody Dawg:
...

They gave it to SBBT a long time ago.

This is almost criminal. It's like theft or something.

Politely ask the bank for interest on your money that they've been holding for no particular reason. If they refuse, tell them you will file a complaint with the Better Business Bureau.

EDIT: forgot a few words.

[Cody Dawg]

Actually, I'm thinking of filing a complaint with the FDIC to be honest.

Seriously.

And maybe I'll sue them. Why not? I think I have ample excuses to do so.

I have an appointment at 4:00 with our business attorney. I'm really hot about this.



Between bad drivers yesterday and this crap, I'm really pissed off.

[OptimusG4]

Think that's bad? Mine was supposed to be direct deposit and done last Friday. I login to the bank this Tuesday to see why it wasnt there, and they claimed to have mailed it because my bank didn't accept the transfer. I triple checked the damn routing and account #'s before filing and yet somehow, I'm now waiting on a physical check. Bastards.

[Cody Dawg]

That's really BAD. I agree that that's really screwed up.

They just mailed it? Without your permission?

[OptimusG4]

You guessed it, mailed without permission. Yet, we did the same thing with my girlfriends taxes and her's was deposited with no problem. Let me tell you, I am never doing that again.

[malvolio]

Is this new as of this year? I have done on-line filing & direct deposit in past years, and did not have any fees deducted from my refund. DIdn't bother to track how fast it got to my account, though.

[dreilly1]

Originally posted by malvolio:
Is this new as of this year? I have done on-line filing & direct deposit in past years, and did not have any fees deducted from my refund. DIdn't bother to track how fast it got to my account, though.

I think this is actually something different -- I noticed it in passing when I tried to file my taxes electronically. (which the IRS wouldn't let me do this year, but that's another story...)

If I understand it correctly, this is kind of a Refund "advance" -- SBBT will forward your refund to you early, and when the IRS gets around to processing the return, they'll give the money to SBBT to pay back the advance. The $20 service fee is to process the advance.

You can file without this service, and not pay the $20 service charge, and have the IRS put the money into your account after they process your return. But who knows how long that will take...

[DeathMan]

If you would have paid the turbotax fee with a credit card, you wouldn't have to pay the $20 to santa barbara.

There are things in this world to be upset about, and there are things to just let go, and realize there is nothing you can do, and learn from for the future.

I had a really good experience with turbo tax this year. Especially compared to doing the 1040 myself, with all the forms for self employment, and a bunch of crap I had to deal with a few years ago before I was doing turbotax.

I haven't gotten my tax return yet, but I'm not too stressed about it.

If you're worried about Santa Barbara collecting interest on your money, you should be having kittens about the government holding on your money for the better part of year.

Plan your taxes so you don't get any back.

[DeathMan]

Originally posted by dreilly1:

If I understand it correctly, this is kind of a Refund "advance" -- SBBT will forward your refund to you early, and when the IRS gets around to processing the return, they'll give the money to SBBT to pay back the advance. The $20 service fee is to process the advance.

I understood it differently.

The $20 fee was to advance you $20 from your refund to cover the cost of the turbotax fee, so you don't have to pay it right then. Is this not correct?

[Cody Dawg]

If I understand it correctly, this is kind of a Refund "advance" -- SBBT will forward your refund to you early, and when the IRS gets around to processing the return, they'll give the money to SBBT to pay back the advance. The $20 service fee is to process the advance.

You can file without this service, and not pay the $20 service charge, and have the IRS put the money into your account after they process your return. But who knows how long that will take...

You're exactly right.

I found that out this afternoon, actually.

I still feel like suing someone and I'm not the suing type. I'm just plain pissed off.

[itai195]

I did my taxes on TurboTax online this year. My refund is supposed to be deposited tomorrow, though it's not too huge this year. Now I have two whole months to worry over my fiance's taxes, which are a pain for a variety of reasons.

I think the money only goes through SBBT if you chose to pay the TurboTax fee using your refund. I didn't do that, just used a credit card.

[Cody Dawg]

I just think I'm a loser at this point.

I have a CPA for business reasons and he offered to do the taxes and I said, "We can handle it, but thank you very much."

[Lateralus]

Well, SBBT is supposed to be direct-depositing my refund tomorrow.

Fingers crossed...

[dampeoples]

I've used Turbo Tax online for the past few years, and never had a problem, sorry to hear you are, and hopefully i won't have one this year.
it's been a very bad year for us, i just lost my house, and will lose my car if this doesn't work

[turboSPE]

The fact that you're geting a refund basically means you're giving the government an interest-free loan all year anyway, so what's another few weeks?

turboSPE

Originally posted by Cody Dawg:
Okay, so this is a head's up to all of you online income tax refund filers.

Be aware that the IRS uses Santa Barbara Bank & Trust for automatic deposits into your account. They charge about $20 for the "service" and there is an online filing fee of roughly $20 also.

Now, this is the deal: When you go online to file your refund it will say, "Please expect your refund in approximately 10 days." You follow the instructions and you're thinking, "10 days isn't that bad, this is a good deal."

HOWEVER, what Santa Barbara Bank & Trust and the IRS do not tell you is that Santa Barbara Bank & Trust ONLY DEPOSITS INTO ACCOUNTS *ONCE* A WEEK!

So, if it doesn't get deposited into your account for *some* reason, they tell you to "wait another week for the next weekly deposit date."

Then guess what? It just MIGHT miss the 2nd weekly deposit date.

Now, is this a coincidence or what? We have a rather large refund. I just called the IRS and they told me that our money was received by Santa Barbara Bank & Trust on the 3rd!

Yet Santa Barbara Bank & Trust is now telling us to wait until the 25th and see if it goes into our account then and until then, "there is nothing that Santa Barbara Bank & Trust can do."



That means that they are keeping our money - because they supposedly only deposit ONCE A WEEK - and earning interest on it.

And, guess what else? No, they are not going to transfer that interest to us.

The upshot is that IF the money goes in on the 25th, Santa Barbara Bank & Trust will have held onto our money for about 3 weeks.

Going back to the IRS? THEY CANNOT REISSUE OUR REFUND. So, basically, we are at the mercy of the bank and when they "decide" to put the money into our account - money which only goes in once weekly.



Don't say you weren't warned.

:

[Kilbey]

Originally posted by turboSPE:
The fact that you're geting a refund basically means you're giving the government an interest-free loan all year anyway, so what's another few weeks?

turboSPE

In her defense, you can't always plan your taxes that well. For example, I gave a lot more in donations than I had planned and am getting a hefty refund in the process. I have a lot of deductions that are hard to plan for.

If you are a renter with no deductions or credits, I suppose what you do is easy, but it's not for everyone.

[dreilly1]

Originally posted by Kilbey:
In her defense, you can't always plan your taxes that well. For example, I gave a lot more in donations than I had planned and am getting a hefty refund in the process. I have a lot of deductions that are hard to plan for.

If you are a renter with no deductions or credits, I suppose what you do is easy, but it's not for everyone.

Yeah, my new little Tax Deduction really screwed up my tax planning for this year and now we have a huge refund coming back. Oh well. Of course, I don't mind.

[TeknoTurd]

Today's lesson on why you consult a CPA for tax advisory, brought to you by Cody Dawg, and the number 2.

[malvolio]

Originally posted by Kilbey:
In her defense, you can't always plan your taxes that well. For example, I gave a lot more in donations than I had planned and am getting a hefty refund in the process. I have a lot of deductions that are hard to plan for.

Overtime pay can screw up your tax plans as well.
The payroll system where I worked for years calculated tax withholding on the assumption that your annual income was your biweekly paycheck x 26. So when one paycheck had a big OT payment in it, the system withheld waaaay too much.

[sideus]

I used TurboTax and paid the fee with my credit card. Had the refund in about a week and a half. No problems.

[Kilbey]

Originally posted by dreilly1:
Yeah, my new little Tax Deduction really screwed up my tax planning for this year and now we have a huge refund coming back. Oh well. Of course, I don't mind.

Very pretty girl. Congrats!

Originally posted by malvolio:
Overtime pay can screw up your tax plans as well.
The payroll system where I worked for years calculated tax withholding on the assumption that your annual income was your biweekly paycheck x 26. So when one paycheck had a big OT payment in it, the system withheld waaaay too much.

I got a big bonus and it screwed up my withholdings too. Gm withheld about $1200 too much from that check alone.

[Cody Dawg]

That's a big chunk of change, Kilbey!

it's been a very bad year for us, i just lost my house, and will lose my car if this doesn't work.

Sorry, dampeoples, to hear that.

File bankruptcy. Seriously. One of my best friends just did. Her husband is a physician and they got a divorce and she has mounds of credit card debt. She got to keep her 1-year old car because the loan on the car is worth more than the car and in Florida you can keep your house no matter the worth of it.

Her house was furnished with second-hand stuff and not worth more than a couple of thousand bucks so the $2,000 limit for personal goods was met also.

She'll have no debt afterwards. Only the mortgage and car payments.

Seriously, that's what it's there for. To give people like you a second chance.

Good luck.

[Kilbey]

Just checked my bank account and the return was deposited this morning.

Good luck Cody Dawg.

[Cody Dawg]

Good for you, Kilbey!



The only positive is that they informed us that with the extra two months that we will get an extra $693 (if it takes 8 weeks to the day) in interest on top of our refund, so there is a silver lining in our cloud.

I don't need the money right now, per se. It would be nice to have it, yes, but I'm not in dire straits, say, the way dampeoples sounds.

Have a great Friday!

[wdlove]

Thank you for the valuable information Cody Dawg. Forewarned it forearmed. I'm sorry to hear about your problem. Just goes to show that Banks are in the business of making money for themselves.

[Lateralus]

Originally posted by Lateralus:
Well, SBBT is supposed to be direct-depositing my refund tomorrow.

Fingers crossed...

I got mah mon3yz! I got mah mon3yz!

[The Godfather]

Originally posted by Cody Dawg:
Good for you, Kilbey!



The only positive is that they informed us that with the extra two months that we will get an extra $693 (if it takes 8 weeks to the day) in interest on top of our refund, so there is a silver lining in our cloud.

I don't need the money right now, per se. It would be nice to have it, yes, but I'm not in dire straits, say, the way dampeoples sounds.

Have a great Friday!

$693 in interest in 2 months? What rate are you applying?

[Kilbey]

Originally posted by The Godfather:
$693 in interest in 2 months? What rate are you applying?

It's probably not the rate so much as the amount of the principal.

[Cody Dawg]

I don't know what rate it is.

They took the amount they owe us and she calculated it and said, "Well, the good news is that you'll get almost $700 back in interest...let's see...$693 to be exact if we kept it for exactly 8 weeks."

Oh well.

I have to send in another tax form filled out and they said it might only take a month instead of two months.

That's okay. I'll just get our chunk o' money in April or May instead. Just in time for a vacation.

[Cody Dawg]

I. GOT. MY. INCOME. TAX. REFUND. TODAY.

WOOO! YEAAAAA!

And all that jazz.

I'm going to the Apple Store TODAY.

I deserve it!

(Not saying I'll buy anything...just looking.)

FINALLY!

[E's Lil Theorem]

Congrats on the fatty refund!

Originally Posted by Cody Dawg

I. GOT. MY. INCOME. TAX. REFUND. TODAY.

WOOO! YEAAAAA!

And all that jazz.

I'm going to the Apple Store TODAY.

I deserve it!

(Not saying I'll buy anything...just looking.)

FINALLY!

Buy me something then

I could use an iSight. Or, a nice 23" display. Or, better yet, both!

I'll take care of the shipping

Thanks Dawg!

[ghporter]

Originally Posted by Cody Dawg

Okay, so this is a head's up to all of you online income tax refund filers.

While the source of the fee has been discussed already, the reason for the weekly deposits by the IRS has not. It's pretty simple: they do everything in batches, and that's actually a good thing.

The IRS downloads electronic filings once a week, because that puts them in control of the flow of returns. They work on that batch until it gets done-usually less than a week to verify electronically submitted data-and then pass the electronic returns on to the screeners and QA. Once an electronic return that doesn't need a lot of scrutiny (an EZ, 1040A or 1040 with adjusted taxable income under some ammount like $100k) gets past there, the computers crunch the numbers and (usually) confirm your refund.

Sometimes the random number generator goes "DING!" and a return gets audited, but the odds of someone who's not making that much money and/or not self-employed getting audited are a lot lower than ever before.

Finally, when direct deposit filers' returns have been inspected, detected, and perfected, their refunds are flagged for payment. DIRECT DEPOSIT BY ITSELF COSTS THE FILER ABSOLUTELY NOTHING. It's the fees Intuit charges for your NOT paying the filing fee with a credit card-which is why I pay with a credit card every time!-that cost you, and it is Intuit that uses Santa Barbara, not the IRS. The IRS directly credits the direct deposit account, again on a weekly basis. Payments are made on various days of the week depending on which IRS Service Center handles your return, so mine might be posted Tuesday, while yours is posted Monday because we live in different areas handled by different Service Centers.

Living in Austin for 5 years, next door to a doctoral candidate that supported himself by working at the Austin IRS Service Center, and then having someone work for me who was a private tax filing agent-and going through electronic filing training when e-filing was NEW have had their advantages! It's all straightforward and blindly procedural. Unless you get audited, there's no "judgement calls" about your filing; there's no human intervention beyond trying to read people's writing! And frankly, the IRS is too bloated and overbureaucratized to have the time to bother most people. They certainly cannot-BY LAW-intentionally delay a valid refund or make arrangements to make a tax payer pay extra to get his or her refund.

[SVass]

A query and a relevant comment from one who has used Turbo/MacinTax for years at home. If you file online, where is your data stored? Does it load last year's data for an outline?

My comment is that if you always owe money and file with a check on April 15, then you get the interest bearing float. They haven't cashed my check yet. Sam

[ghporter]

Originally Posted by SVass

A query and a relevant comment from one who has used Turbo/MacinTax for years at home. If you file online, where is your data stored? Does it load last year's data for an outline?

My comment is that if you always owe money and file with a check on April 15, then you get the interest bearing float. They haven't cashed my check yet. Sam

If you use TurboTax for the Web, your data is stored in an encrypted form on Intuit's servers. It WILL load your previous year's data to start with-not financial data, just things like address, SSNs, number of dependents, etc. Since I would rather trust the CD I burn at home with my previous year's data, I use the at-home version of TurboTax.

Your comment is interesting. Kindly let us know how long it is before the Treasury cashes your check. This should be very informative.

[dreilly1]

I filed using the at-home version of TurboTax, but I declined Intuit's refund service and put my direct deposit information directly on the tax form. (this year I couldn't file electronically, but that doesn't matter here.) I paid no additional service fee and my refund (IIRC) took six weeks or so to appear in my account.

[SVass]

Originally Posted by ghporter

Since I would rather trust the CD I burn at home with my previous year's data, I use the at-home version of TurboTax.

Your comment is interesting. Kindly let us know how long it is before the Treasury cashes your check. This should be very informative.

You asked and now I can say that the check mailed 15 April has been posted with an effective date of 3 May. Might I suggest that you destroy all old CDs after the required number of years as they can subpoena all data that still exists, but can not require you to keep it. sam

[NYCFarmboy]

I got my refund check in the mail 12 days after filing the old fashioned way.... via snail mail and printed out forms.

[Zimphire]

Originally Posted by Cody Dawg

It's like theft or something.

You better watch out using that word in here. Some people's panties might get knotted.

[Cody Dawg]

This thread is resurrected?

Wow!

Whose panties will get knotted?

I'm tired. My baby is sick early this morning.