Refund Transfers & Advances: A Practical Guide for Your Office
Refund transfers let clients pay nothing up front and let you get paid from the refund. Here's how they work, how advances differ, and how to offer them cleanly and compliantly.
TaxWallet Newsroom
August 28, 2026
Why offer bank products
Many clients can't (or won't) pay preparation fees out of pocket. A refund transfer solves that: fees come out of the refund, the client pays nothing up front, and you get paid when the refund funds. It's one of the simplest ways to grow your client base.
Refund transfer vs. refund advance
- Refund transfer (RT): The refund is routed through a bank partner, your fees and the bank's fees are deducted, and the client receives the remainder. No credit check.
- Refund advance: The client gets a portion of their expected refund early as a loan from the bank partner, repaid automatically when the IRS refund arrives. Approval and amounts are set by the bank.
How to offer them cleanly
- Enroll with an integrated banking partner through your dashboard.
- Disclose all fees to the client before they consent — transparency is required and builds trust.
- Get the client's signed authorization to deduct fees from the refund.
- Remember: the refund must be deposited to the taxpayer's account — never to the preparer's.
A word on fees
Every bank product carries the bank's fees plus your preparation fee. Show the client the full breakdown. Clear, upfront pricing prevents disputes and keeps clients coming back.
TaxWallet integrates refund transfers and advances directly into the return flow, with the disclosures and authorizations built in.