An e-file Form 1 is charged immediately. For paper, most people start the day counting when their check is cashed. So yes, they get your money then get to work on processing. If there are any issues and your Form 1 is denied, it can take up to 3 months to refund you the original $200. And you have to pay an additional $200 when you resubmit (since its a "new" Form 1).