Tax Brain diverts funds into the wrong bank.

[skysidhe]

I have been using TAX BRAIN for years. The IRS deposited a refund on the 26th but it is nowhere to be found.

The SBBT site gives a baloney reason why they have not gotten it...blaming the IRS.

I write emails on the two sites contact forms and after receiving those computer generated responses which tell me nothing except for more lies I started to Google the problem.

It has come to pass that TAX BRAIN changed middleman banks which WAS Republic bank and is NOW Meta Bank.
Meta bank is suppose to be receiving and processing the Federal refunds from the IRS.

Oh but someone forgot to change the routing number on the TAX BRAIN software so now guess where thousands of peoples refunds are??

They are at Republic bank! TAX BRAIN had them go to the wrong bank!

Possibly thousands of rejected refunds go back to the IRS and they will cut a paper check. ( at worst )

I called republic bank and the automated service said they have my refund.

There is speculation that the SBBT is trying to work with the IRS to have funds wired but I think they HAVE to send them back to the IRS where a paper check will be cut.

I am not freaking now that I know the truth but it is so ridiculous and there are probably thousands of people who have not sought out this information.

I don't have a link, because I am sure the people at tax brain would rather the news not get out to the world but if you search you shall find.

[xoxoxoBruce]

So you pay $20 for Tax Brain to pass your return to the IRS... and keep all your personal information in a data base they legally own, and can sell to anyone they wish. At least the ones who can't be bothered to hack that data base.

[skysidhe]

Point taken but that isn't MY point.


so...
They sell my information? Where does it say they may?

That said I hope they are not but I am sure hacking peoples information is easy with or without using a site like that.

People use debit cards online everyday. I have one that is separate from my regular account and used with a limited amount of funds.

This is much more risky that using a tax preparation site.Well except when the software person doesn't update and sends thousands of refunds to the wrong processing bank.

[xoxoxoBruce]

No, it's not your point, It's my point.
A credit card number with your name & address, is a far cry from all the information on a tax return. No where else is all this information available in a nice neat package, for marketing types and other slimeballs.
The courts have already ruled, H&R Block owns the information you submit to them for preparation of your taxes. Same applies to others of the ilk.

[skysidhe]

ok

whether you purchase the software or have a preparer e file for you the information is on someones data base someplace.

If you purchase on time or apply for credit your information is on a data base someplace.Make a doctors payment or use your debit/credit card it's on a data base someplace.

Open an account at a bank and you get marketing information.
Buy a trip online and your information is on a data base there too.

plus the countless discount cards we sign up for in stores. We know that information is being used for marketing.


What I think is more troubling is the online phone books/search tools, phishing sites and phishing emails.There is the greater threat to your personal information in my ignorant opinion.

How does a person eliminate the risk? Especially during tax time...everyone files. Do we revert to snail mail? Then I have a paper copy someplace that someone needs to purge and put on microfilm eventually anyway.

I think we are all on the grid. How do we become untraceable?

I was supposed to get my refund on 1/29/09 but Tax Brain put the wrong bank account info and my money was sent to Rebublic Bank. I can not believe taht this would happen in this day and time. Thousands of people's taxes have been delayed due to this problem. Does anyone know if you can call the IRS and give them a different routing and account number to resend the money too?

[tw]

Originally Posted by skysidhe

whether you purchase the software or have a preparer e file for you the information is on someones data base someplace.

Some tax preparers offer free tax programs for simpler fillings. Profit is in selling your information. That was the deal when the IRS made this agreement with the computer tax processing industry.

For example, you can download IRS forms in Adobe format. Those forms could do addition rather than have you enter numbers in some columns. But an Adobe form perform that simple addition would violate the deal that the IRS made long ago.

Some forms can be downloaded and submitted to tax companies for free. Others you pay for. In every case, they own that information when you submit it. That is the deal so that the IRS would not write software - only design the forms.

Download the Adobe form. Enter the data. Print it. Mail it. If everyone did that, then the IRS would address a serious problem. We should all be able to file electronics direct to the IRS - no third parties involved.

BTW, when you do that, then your refund goes electronically to your bank account that you specify. Again, no third party.

[classicman]

Originally Posted by tw

Download the Adobe form. Enter the data. Print it. Mail it. If everyone did that, then the IRS would address a serious problem.

Good info tw.

[xoxoxoBruce]

I don't understand why it goes to a third party, instead of your bank? Does the third party mail you a check, or send it along to your bank electronically?

[tw]

Originally Posted by classicman

Good info tw.

My suggestion has one glaring weakness. Tax code is now so complex that most all need tax programs or tax preparers using those programs. Tax code now so complex that most can no longer submit forms as was done decades ago.

If spending $100 or $400 to do the taxes, that should be deducted from taxes you pay - not just from the taxable income. Today taxes are so complex that the $100 or $400 is just another (unnecessary) tax increase created by politicians who never do their own taxes. All Congressmen have their taxes done and submitted by government accountants - for free. The people who make taxes complex do not suffer through the results of their legislation.

[skysidhe]

@ TW I thought I was getting a free e file but when the software took me to the end of the loop there was a $30 dollar charge.

@ Bruce. It is electronic. I barley deal with paper trails anymore.
I don't pay my bills with paper checks either.

I usually do my own and take them to a preparer to file but they are very expensive and they too send them through their bank to take out any fees. They do this even if you bring in your forms and say no I did my own I just want you to e file them for me. It is all on software so to them it is the same as them doing them.

I am not paying a hundred or more dollars to do something so simple.


@TW about printing and sending snail mail? It is a paper with my information on it that will eventually be sent to a processing center where people on ' get back to work' programs are purging IRS paper files to put them on microfilm ANYWAY so to me this cuts down on that middleman.

The unofficial official word is to check with the IRS on Monday and they will say if the 15,000 checks were retransmitted to the correct bank or if they will mail a paper check.

Rules say they will mail a paper check but this was a big mistake by a major bank and it seems they are holding out on the hope the money gets rewired.

When I call Republic bank the automated lines states my refund has been received but they are unable to process it.

When I call SBBT the automated line says it has not been received and to check back next Friday. This is misleading since most people by now know the first round of refunds were deposited on Jan 26th and at the other bank by the 29th.

SBBT claims they didn't know the money was miss routed but there has been some grumbling they knew immediately and had Tax Brain resubmit to the right routing address a second time but was declined by the IRS and rightly so.

Rebulic Bank should be releasing those fund back to the IRS tomorrow.

This I recieved this email with the same kind of message twice once from Tax Brain and once from SBBT although the automated phone numbers nor the log-in sites are updated to reflect it.



Hello,

Check back on the IRS website on Monday and the information should be there about your return. If they are going to resend it out, or mail you a check. If the money goes back to the IRS to be redistributed, then all your TaxBrain fees will be waived.

If you have any questions in the future please let us know, will be happy to assist you.

Thank You,
Taxbrain Support
http://www.taxbrain.com/

[Clodfobble]

Originally Posted by tw

Tax code is now so complex that most all need tax programs or tax preparers using those programs.

I was just about to point that out before you copped to it. We absolutely require an online program to help with our taxes. We're just glad we're still on top of it enough that we don't need to pay a real accountant. But that's okay, H&R Block can sell my information to marketers... we're too broke to buy anything they might market to us anyway.

[skysidhe]

Originally Posted by Clodfobble

I was just about to point that out before you copped to it. We absolutely require an online program to help with our taxes. We're just glad we're still on top of it enough that we don't need to pay a real accountant. But that's okay, H&R Block can sell my information to marketers... we're too broke to buy anything they might market to us anyway.

Exactly, I was just getting ready to respond to it more clearly than my merely eluding to it in my post.

It's set up to where a person has to file this way unless you have lots of money to pay a preparer but guess what? They are still using software and transmitting electronically. Why pay someone to do something you can do yourself.

I do appreciate TW's thoughtful posts though. I wanted to say that too.

ps. I thought everyone used electronic tax software of some sort unless they make so much money or have so many deductions they cannot navigate filing themselves. This was not so much a boo hoo look what happened but rather I was expecting more of a OMFG someone's made a major mistake,losing a companies revenue and damaging a companies reputation in the process. I am sure someone will lose their job over this. How can you forget to update the software for crying out loud!

[xoxoxoBruce]

No, you didn't come across as boo-hooing, it was clear you were posting about a major clusterfuck at a time when lots of people are interested in this subject.

[skysidhe]

well good.

The lesson learned is to pay any fees to the companies up front then your deposit, if any, goes straight into your bank account from the IRS.