Definitions:

Santa Barbra Tax Products Group (SBTPG) represents the middleman bank for TurboTax when you pay your fees using your anticipated refund.

SoFi represents a financial institution in the United States and has conducted business since 2011. 

Issue: 

My partner and I filed our 2023 taxes through TurboTax and everything appeared to be set. The IRS issued our refund to SBTPG on 2/13/2023 without issue. SBTPG sent our refund, same day, to SoFi who rejected the refund as "miscoded" due to being coded a business transaction instead of personal. As of today, the refund is pending a return to the IRS. 

What's been done:

Contacted SoFi and confirmed this is true. Spoke with a Sr. Manager who claimed absolutely nothing had been done wrong on their side. She claims that SoFi couldn't legally (not outright said it would be "illegal", more implied) accept the transaction because their charter is for personal accounts only.

Contacted SBTPG and they claim this is a standard business practice and SoFi has known about it since 2011, when they were founded as a Bank. SBTPG says their hands are tied because of the way SoFi rejects the transaction, despite SBTPG sending SoFi legal notices for years to change
this practice.

Research shows this has been a public issue between SBTPG and SoFi for years. 

I've put both companies on notice today via phone, and soon USPS certified letter, of my retained counsel. Discussing the possibility of a class suit.

How you can help: 

Please sign if you have been impacted by this situation. Hold these institutions accountable.