Use the Refund Transfer payment option with prior-year returns1,2
Collect your tax preparation fees directly from a client’s prior-year tax refund.
In another industry-first, Santa Barbara Tax Products Group (sbtpg) has upgraded the Refund Transfer to include prior-year tax returns.
Supports federal and state returns
When you prepare a client’s tax return for a prior year and they are expecting a federal and/or state tax refund, they can now pay for tax preparation with their refund. The same convenient payment option you’ve offered for the current tax year is now available for tax returns going back 3 years.
Refund eligibility
How does it work?
If you are preparing a federal and/or state tax return for an individual filing for a prior tax year may use the prior-year Refund Transfer to give clients a pay-by-refund option.
Completely integrated into your tax software
Once a tax return is prepared for a prior tax year and a tax refund is expected, the Refund Transfer payment option will be displayed in the tax preparation software. At this point, the tax professional can offer the pay-by-refund option to the client.
The process to offer the prior-year Refund Transfer follows the same process as offering a current-year Refund Transfer.
Who doesn't qualify?
If a return is being filed for a tax year from more than 3 years ago, the taxpayer is not eligible to use the Refund Transfer, and this option may not be available in the software.
How far back can clients e-file?
Your clients can only receive a Refund Transfer if the claim for that refund is filed within 3 years from the original due date of the return. In most instances, that is April 15th, unless a disaster declaration was made for that year. The software may still allow the refund filing after those dates, but a Refund Transfer will not be available.
Make it easy for clients to pay
It's a simple, flexible solution that removes the barrier of upfront payment, so you can say yes to more clients and grow your revenue without the collections headache. Seamlessly integrated into your tax preparation software, it's the smart way to handle clients with outstanding prior-year filings.
- Service clients who owe multiple years of unfiled returns
- Get paid directly from the federal and/or state refund
- Offer a payment option to clients who can’t pay upfront
- Clients may elect to receive refund status notifications by email and/or text message.
1 Refund Transfer is a deposit product offered by Green Dot Bank, Member FDIC, that enables authorized amounts to be deducted from the taxpayer’s refund, with the remaining balance then paid to the taxpayer. Fees apply. Refund Transfers are not loans. Tax refund and e-filing are required to receive Refund Transfer. Terms and conditions are subject to change without notice. Ask your preparer about other IRS e-file options, some of which are provided at no additional cost.
2 Check with software provider for availability.