Starting September 30, 2025, the federal government stopped issuing paper checks for tax refunds. Executive Order 14247, signed March 25, 2025, directed the Treasury to eliminate paper check disbursements, and the 2026 filing season is where preparers and their clients feel it first. For the roughly 5.6 million Americans who are unbanked and have no bank account for direct deposit, that leaves prepaid debit cards as the primary IRS-recognized option. Bank products for tax preparers are the practical way to deliver that solution, inside your tax software, at the point of filing.
This guide covers what bank products are, how each product type works, the four bank partners integrated with TaxWise through America's Tax Professionals (ATP), the business case for offering them in your practice, and how to enroll. Product terms, fees, and availability vary by partner and change seasonally. Current details are available inside the TaxWise software and at the ATP bank products page.
What Are Bank Products for Tax Preparers
Bank products are financial services offered through third-party banks that are integrated directly into professional tax software. They let taxpayers pay for tax preparation out of their refund rather than out of pocket, and they let preparers collect fees at settlement without chasing clients for payment after filing. The bank acts as the intermediary: it receives the IRS direct deposit, deducts the applicable fees, and delivers the remainder to the taxpayer.
For preparers, bank products serve two distinct purposes. First, they remove the "I can't afford to pay you right now" barrier that causes clients to delay filing or walk to a competitor who offers a pay-from-refund option. Second, in the post-paper-check environment, they give unbanked clients a practical way to receive their refund through a prepaid debit card, which every integrated bank partner provides.
TaxWise, the professional tax software ATP resells, integrates with four bank product partners. The banks set their own fee schedules. ATP does not set or collect bank fees. Preparers review partner options and enroll through the software.
How a Refund Transfer Works
A refund transfer is the foundational bank product. Here is the sequence from filing to settlement:
Preparer completes and e-files the return
You prepare the return in TaxWise and select a bank product partner within the software. A temporary bank account is established in the taxpayer's name with the partner bank. You enter that account's routing and account numbers as the direct deposit destination on the return.
IRS processes the return and deposits the refund
The IRS accepts the return through ATP's e-file transmission and deposits the refund into the temporary bank account. Timing follows normal IRS processing, typically within 21 days for e-filed returns with no issues.
The bank deducts fees at settlement
When the refund arrives, the partner bank deducts the bank product fee and the preparer's tax preparation fee from the deposit. The bank fee is paid by the taxpayer out of the refund; the preparer does not pay it. The preparer's fee is remitted directly to the preparer.
The remainder reaches the taxpayer
The net refund goes to the taxpayer by direct deposit to their personal bank account, onto a prepaid debit card provided by the bank partner, or by check depending on the partner and the taxpayer's election. Prepaid card delivery is the key option for unbanked clients who cannot accept direct deposit.
The entire sequence happens within your TaxWise workflow. You do not need a separate banking relationship or a separate system. The bank product is initiated at the time of filing and settles automatically when the IRS deposit arrives.
Bank Product Types Available Through TaxWise
The four TaxWise bank partners each offer a different combination of the following product types. Not every product is available from every partner, and availability can vary by state and by season.
Refund Transfer (RT)
The core product, described step by step above. The IRS deposit routes through a temporary bank account, fees are deducted, and the remainder goes to the taxpayer. All four TaxWise bank partners offer a refund transfer product. The bank fee is paid by the taxpayer at settlement. Fees vary by partner; review current rates within TaxWise or on the ATP bank products page.
Refund Advance Loan
A refund advance is a short-term loan issued to the taxpayer against their anticipated federal refund, typically available shortly after e-filing and IRS acknowledgment. The loan is repaid automatically when the IRS deposits the refund into the temporary account. Two common structures are offered across the TaxWise bank partners:
- Fixed-amount advances at 0% APR: The taxpayer receives a fixed loan amount (for example, a smaller or mid-range advance) at no interest cost. The loan is repaid from the refund at settlement.
- Percentage-based advances: The taxpayer can receive a percentage of the anticipated refund as a loan. These carry an interest rate. Loan maximums, percentages, and rates vary by partner and season.
Refund advances give clients who need funds before their refund arrives a way to access money quickly. For preparers, offering an advance option is a competitive differentiator against franchise offices and other preparers who offer similar products.
Pre-Acknowledgment Loan (Pre-Ack Loan)
A Pre-Ack loan is issued to the taxpayer before the IRS issues its acceptance acknowledgment of the return, typically starting in early January when the IRS begins accepting returns. This is a premium product available through select TaxWise bank partners. Because it is issued before IRS acceptance, it carries higher risk for the bank, and partners typically charge a marketing fee to the preparer's office for offering this product. Preparers should review the marketing fee structure for Pre-Ack products carefully before enrolling.
Pay-by-Refund (Fee Collection Only)
Some bank partners offer a lower-cost product designed specifically for fee collection, without an advance or a loan component. The taxpayer's refund routes through the temporary account, the preparer's fee is deducted, and the remainder goes to the taxpayer. This is the simplest and typically lowest-fee product structure for clients who only need a pay-from-refund option with no advance.
Prepaid Debit Cards
Every TaxWise bank partner offers a prepaid debit card as a refund delivery option. Cards are issued on major networks (Visa, Discover) and function like a standard debit card once loaded. For unbanked clients who cannot receive a direct deposit and for whom the IRS paper check is no longer available after EO 14247, a prepaid card delivered through a bank product is the most straightforward solution available at the point of filing.
TaxWise Bank Product Partners Available Through ATP
TaxWise integrates with four bank product partners through America's Tax Professionals. Each partner has a different product lineup, fee structure, and advance program. You choose one partner per tax season during enrollment. Fee amounts are set by each bank, not by ATP, and they change from season to season. The current fee schedules are displayed within TaxWise during the enrollment process. Before you submit a client's return information to a bank partner, enrollment requires 7216-compliant client consent; see our Section 7216 consent and disclosure guide for the written consent language bank products require.
Santa Barbara Tax Products Group (TPG / SBTPG)
TPG is one of the largest refund transfer processors in the independent tax preparation market. Their core products include the standard refund transfer, the Fast Cash Advance program (which offers advances up to a high maximum loan amount), and the Green Dot Prepaid Visa card for unbanked clients. TPG's advance program is percentage-based, with the maximum advance amount set each season. Review the current advance cap and fee schedule in TaxWise before recommending this product to clients.
EPS Financial (Pathward, N.A.)
EPS Financial, banking through Pathward, N.A., offers three product lines under their platform: e-Collect (refund transfer), e-Advance (refund advance loans at 0% APR for fixed amounts), and e-Bonus (a preparer incentive program). EPS is one of the partners that offers Pre-Ack loan availability starting in early January. They also offer the FasterMoney Visa prepaid card for taxpayer disbursement. EPS products are available within TaxWise with current fee and advance details shown during enrollment.
Refund Advantage (Pathward, N.A.)
Refund Advantage, also banking through Pathward, N.A., offers a refund transfer product, Taxpayer Advance Loans, the FasterMoney Discover prepaid card for refund delivery, and Tax Office Loans for working capital needs of the preparer's office itself. The Tax Office Loan is a distinct product type, not a taxpayer advance: it provides the preparer's business with operating funds ahead of the season. Refund Advantage also supports Pre-Ack loans. Review their current terms in TaxWise before enrollment.
Republic Bank and Trust
Republic Bank and Trust rounds out the four TaxWise bank product partners. Their product suite includes a standard refund transfer, the EASY100 product (a small fixed advance at no interest and no fee to the taxpayer), the Easy Advance loan program, and the December Dollars program, which lets preparers offer clients early-season advances starting in December before the IRS opens for e-filing. Republic Bank's December Dollars product is one of the earlier-season options available to preparers who want to serve clients before the official filing window. Current terms are displayed in TaxWise during enrollment.
To compare current partner programs side by side and explore bank product options available through ATP, visit the bank products page. Seasonal program details and enrollment instructions are also available there.
The Business Case for Offering Bank Products
Independent tax preparers compete on price, speed, and service. Bank products affect all three. Here is what offering them changes for your practice.
2026 IRS Processing Note: In 2026, IRS e-file processing is running 3 to 5 weeks for electronically filed returns (compared to the typical 21 days), and paper returns are taking 8 to 12 weeks or longer. This makes refund transfer advances more valuable than in a normal season. Clients who need funds faster than the IRS processing timeline should consider a refund advance product.
Remove the up-front payment barrier
Many individual filers, particularly those who have limited savings or are waiting on their refund for expenses, do not have cash or a credit card available to pay a tax preparer at the time of filing. Without a pay-from-refund option, that client either delays filing until they have funds, pays a franchise tax office that already offers bank products, or skips professional preparation entirely. A refund transfer gives you a clean, client-friendly answer to "can I pay out of my refund?"
Serve unbanked clients in the post-check environment
According to FDIC household survey data, approximately 5.6 million Americans are unbanked. After EO 14247's effective date, those clients cannot receive a paper refund check and cannot use direct deposit. If you do not offer a bank product with a prepaid card option, you have no IRS-recognized refund delivery path to offer those clients. Every major franchise competitor offers this. Independent preparers who do not are at a structural disadvantage for a meaningful slice of the market.
Improve your own cash flow
With a refund transfer, your preparation fee is remitted to you directly from the bank at settlement, not collected after the fact from the client. For offices that have experienced clients not paying or delaying payment after receiving their refund, this is a meaningful operational improvement. Your fee collection becomes predictable and tied to the IRS deposit timeline rather than to client behavior.
Competitive parity with franchise offices
Every national franchise tax chain offers refund transfers and refund advances. Independent preparers who do not offer bank products are operating with a narrower menu than their franchise competitors. For clients who walk in asking "do you offer refund advances?", not having an answer is a lost client. Bank products through TaxWise give you the same product lineup as the large chains, within your existing professional tax software.
How to Enroll in Bank Products Through TaxWise and ATP
Bank product enrollment is handled inside TaxWise after you purchase the software through ATP. The process is straightforward:
Purchase TaxWise through ATP
Bank product access is tied to your TaxWise license. If you are not yet a TaxWise user, review software options and pricing to get started. If you are an existing ATP customer, contact us to confirm your bank product access is active for the current season.
Review partner options in the software
TaxWise displays the available bank partners with their current-season fee schedules, advance programs, and enrollment requirements. Review each partner's terms before selecting. You select one bank partner per season; you cannot mix products from different partners on the same account.
Complete the bank's enrollment application
Each partner requires its own enrollment application, submitted through TaxWise. Applications typically request your EFIN, business information, and bank information for fee remittance. Applications open seasonally, typically in the fall before the filing season. To get an EFIN if you do not yet have one, see the EFIN guide.
Receive bank approval and begin offering bank products
The partner bank reviews and approves your application. Once approved, bank product options are active within TaxWise and available on returns you prepare. ATP is available to assist with questions during enrollment. Reach us at 224-388-1774 or through the contact page.
If you are setting up a new tax preparation office and working through the full registration sequence, including getting an EFIN and selecting software, the How to Start a Tax Preparation Business guide covers the complete setup from the beginning. Because routing a client's return information to a partner bank involves disclosing return data to a third party, review the IRC Section 7216 consent requirements for bank product partnerships before you offer them.
Bank product participation affects the structure and disclosure of preparation fees, since RAL and RAC arrangements require the fee to be separately stated and disclosed at the time of application. The tax preparation fee guide covers fee transparency requirements under Circular 230, state-level fee disclosure rules, the mechanics of splitting fees across multiple return preparers in a firm, and how to structure fees to avoid unconscionability challenges.
Frequently Asked Questions
What is a bank product for tax preparers?
A bank product is a financial service offered through a third-party bank integrated with your tax software. The most common type is a refund transfer, which routes the IRS deposit into a temporary bank account, deducts the preparer fee and any applicable bank fee, and then sends the remainder to the taxpayer by direct deposit or prepaid card. This lets taxpayers pay preparation fees out of their refund rather than out of pocket.
Who pays the bank product fee?
The taxpayer pays the bank fee, not the preparer. The fee is deducted from the refund at settlement, so the taxpayer receives their refund minus the bank fee and the preparer's fee. Preparers do not pay the bank fee out of pocket. ATP does not set bank fees; each partner bank determines its own fee schedule, which is disclosed to the taxpayer before the return is submitted.
What is a refund advance loan?
A refund advance is a short-term loan issued to the taxpayer against their anticipated federal refund. The loan is repaid automatically from the refund when the IRS deposits it. Some advance products are offered at 0% APR for fixed loan amounts; others carry an interest rate on percentage-based advances. Loan availability and terms vary by bank partner and season. Review current advance programs in TaxWise or on the ATP bank products page.
What is the IRS paper check phase-out and why does it affect my clients?
Executive Order 14247, signed March 25, 2025, directed the Treasury to end paper check issuance for federal payments, including tax refunds, effective September 30, 2025. In the 2026 filing season, clients who previously received paper checks must use direct deposit or a qualifying prepaid card instead. Approximately 5.6 million Americans are unbanked and do not have a bank account for direct deposit. Prepaid debit cards available through bank product partners are the primary IRS-recognized solution for unbanked clients. If you do not offer a bank product with a prepaid card option, those clients have no refund delivery path you can provide.
How do I enroll in bank products through TaxWise?
Enrollment is handled inside TaxWise after you purchase the software through ATP. You select a bank partner, review their current-season terms, and complete that bank's enrollment application within the software. ATP can walk you through the process. Contact us at 224-388-1774 or through the contact page for enrollment guidance.