Unlocated Tax Refunds: IRS Claims Money Sent Yet Many Still Await

Federal tax refunds worth thousands of dollars remain unaccounted for.

According to the IRS, the money was dispatched several months ago, but numerous taxpayers are still in anticipation of its arrival.

"I'm talking about a significant amount here - over $16,000. All I need is my money," stated Crystal Williams.

Equally frustrated, Nichole Smith is also awaiting her 2021 tax refund, which amounts to over $17,000.

"It's incredibly aggravating, especially considering I have six children who rely on me. I need that money," Smith expressed.

Both women used Turbo Tax to file their taxes and were under the impression that their refunds would be received in the form of a check. However, their money was instead deposited into Santa Barbara Tax Product Group, also known as TPG. TPG is the bank responsible for processing refunds when individuals choose to have their tax preparation fees deducted.

Both women have attempted to rectify the situation by contacting Turbo Tax regarding their missing tax refunds.

"Turbo Tax claims that the matter is no longer within their control," Smith complained. "I've reached out to them, but received no response, just a prerecorded message."

Williams, on the other hand, managed to establish contact with TPG. In the spring, she was informed that her refund check had been sent.

"They told me to call them back if I hadn't received it by April 10th," Williams recalled her conversation with TPG. She explained that this process went on for weeks, but she never received her refund check from TPG, despite the company's assurances that it had been sent three times.

"I have informed delivery. I use a PO Box, and I've never had an issue with receiving mail. The problem lies in the fact that they claim to have mailed it, but it's not like it's getting lost every time they say they've sent it. It's just not happening," Smith emphasized.

The situation doesn't solely affect Smith and Williams. The Better Business Bureau has recorded over 1,000 complaints against Santa Barbara Tax Products Group over the past 12 months, earning the company an F rating. The majority of these grievances concern frustrated taxpayers waiting for their refunds from TPG.

Diane Wilson, the troubleshooter, attempted to reach out to both TPG and Turbo Tax. However, neither TPG nor its parent company, Greendot, provided a response. Turbo Tax, on the other hand, stated that it would personally assist Williams and Smith. Both women confirm that they have heard from Turbo Tax and are hopeful that they will finally receive the tax refunds they are owed, after months of waiting.

While the IRS has already processed the tax refunds for Williams and Smith, it is still in the process of handling returns for other taxpayers, particularly those who did not file electronically. For individuals who met the tax deadline but have not received their refunds within 45 days of filing, the IRS is obligated to provide interest for each additional day that passes without receiving the refund they are owed.