Overview of Bank Products

When you file your clients’ federal individual returns electronically, those clients may be eligible to receive proceeds based on their expected federal refunds in the form of bank products such as:

▪	Refund Anticipation Loans (RALs),

▪	Refund Anticipation Loan Direct Deposits (RALDDs),

▪	Refund Transfers (RTs), and

▪	Refund Transfer Direct Deposits (RTDDs)

In addition, your fees can be deducted from the client’s refund and deposited into your bank account electronically.

 

Tip:	You can offer Refund Transfers and Refund Transfer Direct Deposits based on the expected state refund from one state under certain circumstances if you’re offering bank products through Santa Barbara Bank & Trust.

As a general rule, a client is eligible for a bank product if:

▪	The client is due a federal refund, and

▪	You’re filing the client’s federal return electronically

ProSeries Basic Edition bank products software through Santa Barbara Bank & Trust is included with ProSeries Basic Edition and integrates with ProSeries Basic Edition electronic filing software. However, you can offer bank products through Refund Advantage instead of Santa Barbara Bank & Trust.

 

Tip:	For more information about offering bank products through Santa Barbara Bank & Trust or Refund Advantage, go to http://www.proseries.com, select Products, then select Bank Products.

Note the following:

▪	If you’re accepted by Santa Barbara Bank & Trust, your clients’ RAL and RT applications are sent to Santa Barbara Bank & Trust when you electronically file their returns with the IRS.

▪	If you’re accepted by Refund Advantage, you use the software you receive from Refund Advantage to send your clients’ RAL and RT applications to Refund Advantage when the IRS accepts the clients’ electronically-filed returns.

 

Important:

You can offer bank products through only one bank for the 2008 tax year.

The following table shows the names and acronyms that each bank uses for bank products.

 

Bank	Refund Anticipation Loan	Refund Anticipation Loan Direct Deposit	Refund Transfer Check	Refund Transfer Direct Deposit
Santa Barbara Bank & Trust	RAL	RALDD	RT	RTDD
Refund Advantage	RAL	Not applicable	Electronic Refund Check (ERC)	Electronic Refund Deposit (ERD)

The following table summarizes the basic steps for offering bank products to your clients through Santa Barbara Bank & Trust:

 

To take this step	Do this
1. Apply to Santa Barbara Bank & Trust to participate in their bank products program.	Go to http://www.proseries.com, select Products, select Bank Products, then select Enroll Now with SBBT.
2. Set the ProSeries Basic Edition Bank Products options.	a. Go to the Tools menu, select Options, then select Bank Products. b. Select the Bank Products options that you want. c. Click Registration Information, then enter the requested information in the Bank Products Registration Information dialog box.
3. Transmit your registration information to Santa Barbara Bank & Trust (any time after 12:00 a.m. PST on 12/01/08).	a. Click the Bank Products tab in HomeBase. b. Go to the E‑File menu, point to Bank Products, then select Transmit Registration Information.
4. Check for the registration acceptance status from Santa Barbara Bank & Trust.	a. Click the Bank Products tab in HomeBase. b. Go to the E‑File menu, select Bank Products, then select Receive Acknowledgments.
5. Prepare the client’s federal return for a bank product.	a. Prepare the client’s federal and state return(s). b. Prepare the client’s federal return and state return(s), if applicable, for electronic filing. c. Complete the Bank Product Information Worksheet in the client’s federal return. d. Review the client’s return(s) and make sure the return(s) successfully pass Final Review. e. Print the Refund Anticipation Loan (RAL) and Refund Transfer (RT) Application and Agreement form from the client’s federal return, and have the taxpayer(s) sign it.
6. File the client’s return(s) electronically.	a. Click the EF Clients tab in HomeBase and select the client’s return(s). b. Go to the E‑File menu, select Electronic Filing, then select Convert/Transmit Returns and Extensions.
7. Receive bank product print authorizations and status messages (after the electronic filing status for the client’s federal return and/or state return becomes “Return Accepted”).	a. Click the Bank Products tab in HomeBase. b. Go to the E‑File menu, select Bank Products, then select Receive Acknowledgments.
8. Print the client’s Refund Anticipation Loan or Refund Transfer check(s). (This step isn’t applicable for direct deposits.)	a. If “Ready to Print” appears in the Status column of the HomeBase Bank Products view, select the client. b. Go to the E‑File menu, select Bank Products, then select Print Checks... c. Deliver the check(s) to the client.
9. If there’s a problem with a check, resolve the problem.	a. Click the HomeBase View Bank Products tab and select the client whose check is affected. b. Go to the E‑File menu, select Bank Products, then select Resolve Check Problems...
10. View or print Bank Products reports.	a. Click the Bank Products tab in HomeBase and select the client returns that you want to include in the report. b. Go to the E‑File menu, select Bank Products, then select Reports.

 

Important:

Note the following about RAL and RT check amounts.

▪	RAL check amounts. Refund Anticipation Loans are limited to $7,500.

 

Tip:	If a client’s refund is greater than $7,500 and less than $10,000, the amount axceeding $7,500 is distributed as an RT check (up to a maximum of $2,499).

▪	RT check amounts. There’s a limit of $5,500 per Refund Transfer check.

 

Tip:	There’s no limit to the total amount that can be distributed to a client via multiple Refund Transfer checks. However, none of the checks can exceed $5,500.

For additional details about bank products, use the Search Help feature on the Help toolbar or in the Help Center.

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