The Direct Pay program is an EPS first and it is a simple and streamlined method used solely for collecting tax preparation fees out of a taxpayer’s refund. Similar to credit card processing, the transaction cost is paid for by the tax preparer.
Tax prep fees are deducted from your client’s refund when disbursed from the IRS or State and the remainder is direct deposited to them. Your tax preparation fees are deposited directly into your bank account. The fee is $12 per taxpayer, is paid for by the tax preparer, and is conveniently deducted from tax preparation prior to being distributed.