Tax Transcripts (4506-T)
Determine a borrower's income quickly and reliably.
Used to verify the validity of a borrower's income by referencing tax returns filed with the Internal Revenue Service.
Internal Revenue Manual (IRM) procedures require us to verify address information provided by the taxpayer on their Forms 4506-T or 4506T-EZ as part of our validation process. If the address information provided by the taxpayer, either their current address or their previous address shown on their last return filed does not match what is on our master file records, the request will be rejected back to the taxpayer.
- Turnaround is 2-3 days (holidays, year end, and tax season could cause delay)
- Low-cost method to determine a borrower's income quickly
- 1040 Individual Income Tax Returns with or with out W-2s
- W-2 Information available
- 1065 Partnership Income Tax Returns
- 1120 Corporation Income Tax Returns
- Streamline the loan approval process
- Obtain tax transcripts directly from the IRS to compare information provided by the borrower with what was actually filed with the IRS
- Fraud prevention tool, as well as performing quality control on funded loans
- Convenient method for borrowers to supply income information during the loan application process that may have been lost or misplaced