Bank Products and How They Work

Bank products, or refund transfers, can be confusing at times. Here at Taxware Systems, we want to make sure that the options available are clear to you as a tax professional. Bank products can be used as a tool to help you gain more clients, expand your business by offering more services and ultimately make you more money.

What is a bank product/refund transfer?

A bank product/refund transfer is a service that allows you, the tax professional, the option of having your preparation fees taken out of the client’s refund.

How does it work?

Money is routed from the IRS to the Refund Settlement Bank of your choosing, and then the bank distributes your preparation fees directly to you, the tax professional. Simultaneously, the bank issues the taxpayer’s refund via check, direct deposit, or prepaid card.

Are bank products mandatory?

No, but it can be a great option for your office and your clients.

How does it benefit me, the tax professional?

A bank product ensures you, the tax professional, will receive your preparation fees. It will also help you expand your business by offering more services than other offices, and free up your time to focus on gaining more clients rather than collecting payments. In addition, it will give you the opportunity to make more money.

How does it benefit my client, the taxpayer?

The bank product service makes paying for tax preparation fees that much easier. With this service, taxpayers that can’t afford to or don’t want to pay upfront for your services can still get their taxes done in your office.

How much do bank product services cost?

Contact the Refund Settlement Banks, as their disbursement fees may vary. Taxware Systems is proud to be one of the few, if not the only, tax software company that does not charge bank transmission, bank technology, service bureau or any “other” fees. The only cost is the refund settlement processing fee from the bank.

Which banks does Taxware Systems integrate with?

We integrate with Santa Barbara (SBTPG), Refund Advantage and River City Tax Division. For more information, please contact Taxware Systems at 1-800-877-1065 or the banks directly.

Santa Barbara (SBTPG):                  Refund Advantage:                                River City Tax Division

1-800-779-7228                           1-866-876-6648                                            1-270-547-5151

Have More Questions? Please feel free to give us a call at 1-800-877-1065 and we would be happy to help you!



“What Does this Rejection Mean?” Reading Schema Validations

Have you ever wondered why your return is rejecting but your numbers and amounts are correct? Here’s a step-by-step guide on how to read schema validations in the Taxware Systems software program.

To Read Schema:

  • Go to the Summary Menu page and Validity Checks. If the indicator is red, it means that the return is likely to reject.
  • Click on Validity Checks. Any errors picked up by the software will be indicated in red or yellow and will be in list form. Red means that the return is likely to reject because of errors that will be tagged by the IRS, such as errors in basic information. Yellow indicates that there are warnings you should probably look into, but may not be immediately rejected, such as missing preparer or state information.
  • Double click on an error in the list, and you will be directed to the page where the error was found. Once the error is fixed, the error will disappear from the list. Continue down the list until the validity indicator is green. Once the indicator is green, the software has not detected further errors, and you should be able to transmit the return.

To Read the X-Path:

On the validation page where the list of errors is located, click on the right hand top corner “Federal” or “Sate”. This is another type of validation called the X-Path.

Validation Error: The element ‘PreparerUSAddress’ in namespace ‘’ has incomplete content. List of possible elements expected: ‘AddressLine1Txt’ in namespace ‘’.

XPath: Return\ReturnHeader\PaidPreparerInformationGrp\PreparerUSAddress\
Location of error: Line number 40 at position 28.

The validation error in this example is saying that the preparer address is incomplete. To read the XPath shown above, you see that the information is in the Return (Tax Return), Return Header/Preparer Information Group (The preparer information is where the error is located generally), and preparer U.S. address (The preparer information where the error is actually located).

Once the error is found and fixed, the error will disappear from the error list, and then you can continue down the list until your validation indicator is green. When the indicator is green, you should be able to transmit the return.

Have More Questions? Please feel free to call 1-800-877-1065 and ask for any available technician.