If you apply for a loan or wish to re-finance your current mortgage, the lender needs to verify your income. The lender usually does this by having you sign IRS Form 4506-T which allows the lender to obtain a copy of your tax transcripts directly from the IRS. The lender will also request that the individual applying for the loan submit the three most recent years of tax return filings. The lender will usually compare the IRS transcripts against the tax returns you supply to make sure that the returns provided to the lender were those filed by you.
Instead of rummaging through your residence to find your prior years’ IRS tax returns, calling your tax professional to obtain copies, or requesting copies from the IRS which charges a fee for this service and takes weeks to respond, the IRS is now offering a convenient, free and valuable service to taxpayers. Yes, you read that correctly, the IRS is now offering a convenient, free and valuable service to taxpayers.
You can now log onto the IRS website IRS Transcripts, answer a few questions (such as your filing status, SSN, verifying telephone numbers that you may have had in the past, etc.) and then immediately download different types of income tax transcripts for the past three years. The IRS website is user-friendly in that it asks why the individual is requesting a copy of a transcript. If the user selects “mortgage”, the system automatically selects the proper transcript that the individual will need to send to its mortgage lender. This IRS application should make the mortgage application process much easier on all parties.
Note: If you have not paid your prior years’ taxes and are seeking assistance from a tax professional for tax preparation, tax planning or tax debt relief services, you may wish to print out all available transcripts from the IRS website and bring those to the initial meeting. If you wish to learn more about IRS debt relief services, we invite you to call 610-594-2601 today to make an appointment at our Exton PA CPA office to discuss your situation. You can also schedule a consultation at Click Here.
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