Bank Products For Tax Preparers

Grow your business by offering bank products for tax preparers. Bank products are a scalable way to expand your customer base, close more returns, get paid reliably, and earn more this tax season.

What Is A Bank Product For Tax Preparers?

A bank product is a refund-related service that allows tax professionals to have their preparation fees deducted from a client’s refund instead of charging them upfront.

How It Works

  1. 1

    You prepare and e-file the return.

  2. 2

    The client chooses pay-by-refund (and any other eligible options).

  3. 3

    The IRS issues the refund (when processed) and routes it through the selected bank product program.

  4. 4

    Authorized fees (including your prep fee) are deducted and paid to you.

  5. 5

    The remaining refund is delivered to the taxpayer via the selected disbursement method.

Why Offer Bank Products?

Benefits for tax preparers

Benefits for your clients

Benefits For Tax Preparers

Bank products help you remove upfront-payment friction, close more clients during peak weeks, and collect fees through a cleaner, more reliable process.

Here are the key outcomes you can expect:

Higher conversions in peak weeks

“No upfront fees” is a simple differentiator for price-sensitive shoppers.

More reliable fee collection

Fees are handled through the refund flow instead of chasing payments.

Less A/R work

Reduce follow-ups and awkward payment conversations chasing preparation fees.

Competitive edge

Helps you compete with big-box storefront expectations and DIY alternatives.

Serve a wider client base

Expand your customer base by serving clients who can’t (or don’t want to) pay upfront.

Flexible provider setup

Use Sigma’s professional tax preparation software with bank products and choose from trusted partners based on fit.

Benefits For Your Clients

Bank products give taxpayers more flexibility in how they pay for preparation and how they receive their refund, especially as refund delivery continues shifting toward electronic options.

Here are the biggest benefits clients typically care about:

No upfront payment for prep fees

(with pay-by-refund): Pay your preparation fees from the refund instead of out-of-pocket.

More payment flexibility

Helps taxpayers who can’t (or don’t want to) pay upfront still file early.

More refund delivery choices

Select from multiple disbursement methods (program-dependent).

Immediate financial support

Refund advances can provide funds earlier on a loan basis (up to $7,500).

Clearer “net refund” experience

Fees can be shown upfront so clients understand what they’ll receive after deductions.

Bank Product Options For Tax Professionals

Sigma Tax Pro supports common categories used across bank products for tax preparers:

Refund Transfers (Pay-by-Refund)

The most common bank product option. A refund transfer lets the client pay your preparation fee from their refund. The settlement bank receives the refund, deducts authorized fees (your prep fee plus any applicable program fees), pays you, and then disburses the remaining refund to the client.

Refund Advances (Taxpayer Advances)

Refund advances are short-term loans offered against a taxpayer’s expected refund. They’re optional, approval-based, and repaid when the refund arrives. The following key points should be communicated clearly:

  • This is a loan, not the refund itself.
  • Approval is not guaranteed, and terms vary by program.
  • A taxpayer advance does not make the IRS process refunds faster. It’s lender-funded, then repaid from the refund.

Pre-season ERO Loans

Some bank partner programs offer pre-season funding designed to help EROs cover upfront costs (software, staffing, rent, marketing) before peak filing volume begins. These are business financing decisions that require careful review of repayment mechanics and requirements.

In-season ERO Loans

In-season ERO funding can help offices stay cash-positive while returns are being prepared and funded. Structures vary by provider and may be tied to funded returns, fee withholding flow, or other program requirements.

After-season (Unfunded Prep Fee Collection Programs)

After-season fee collection programs are designed to help with unfunded or unresolved preparation fees. This can be useful for managing exceptions, but it’s still best practice to maintain clear disclosures and consistent documentation throughout the season.

Pro Tip

Availability, eligibility, fees, and exact product names vary by bank partner and program. Sigma Tax Pro can help you choose a compatible provider mix and configure your offerings within your professional tax preparation software, including bank products.

Our Trusted Bank Partners

Sigma Tax Pro supports multiple trusted providers so you can match the right program to your clients and your workflow inside professional tax software with bank products.

PayDash

PayDash is positioned as a simpler, refund-transfer-focused option for offices that want to start with pay-by-refund without adding extra product layers. In Sigma Tax Pro, PayDash is available specifically through Sigma 1040-TW, making it a straightforward choice for preparers who want to keep their bank product offering lean.

Tax Products Group (TPG)

TPG is a well-known provider in the tax bank product space, offering refund-related programs that support pay-by-refund workflows for tax offices. It’s often chosen by preparers who want a widely used, established option with a broad ecosystem of tax-season products.

EPS Financial

EPS Financial provides bank product programs designed for professional tax offices, including pay-by-refund and other program options depending on eligibility. A strong fit for offices that want a structured offering with flexibility across program tracks.

Refund Advantage

Refund Advantage is built around refund transfer programs that help offices offer pay-by-refund and related refund delivery options where available. It is commonly selected by independent preparers who want a streamlined experience and a dependable set of tax-season tools.

Republic Bank Tax Refund Solutions

Republic Bank offers bank product programs used by many tax professionals, centered on pay-by-refund and additional program options, depending on office approval. Often considered by offices that want an established provider with strong seasonal planning support.

Find Your Right Fit At A Glance

Here’s a comparison table to see which provider suits your needs:

How To Start Offering Bank Products

Getting started is straightforward when you follow a clear, repeatable setup process. Use the step-by-step guide below to choose a bank partner, complete enrollment, and enable bank products inside Sigma Tax Pro so you’re ready before peak season.

Step 1: Choose Your Sigma Software

Sigma Tax Pro offers professional tax prep software with bank products across its lineup (1040-TW / 1040-SR / 1040-DR).

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Step 2: Pick Your Bank Partner(s)

Choose the provider(s) that match your goals for this tax season.

Step 3: Send Required Paperwork To Sigma Tax Pro

We use a streamlined setup flow: you send paperwork, we register the banks, integrate, and confirm.

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Step 4: Offer Options Using A Simple Script

Keep it clear and compliance-friendly with simple choices for payment.

Step 5: Set Client Expectations

Remind clients that the IRS notes most refunds are issued in fewer than 21 days, but some take longer.

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Bank Products For Tax Preparers FAQs