Form 4506-T is an Internal Revenue Service (IRS) document that is used to retrieve past tax returns, W-2, and 1099 transcripts that are on file with the IRS. The document gives permission for a third party to retrieve the taxpayer’s data. The taxpayer must sign and date the 4506-T. In today’s tightly regulated lending environment, many lenders are requiring that mortgage brokers and originators not only pull the traditional tri-merge credit report, but also verify the borrower’s income with a 4506-T.
How long does it take to receive tax transcripts?
Completed tax transcripts usually are received within 24 – 48 hours or less but the IRS has up to 48 hours to process the request according to their guidelines for bulk vendors. Be wary of vendors who can promise 8 hour turn times as that is not part of the IRS program guidelines for processing 4506-T tax transcripts.
Note: The IRS considers any request for tax transcripts received after 2:00 p.m. EST as a next business day order.
Can I go directly through the IRS to receive the transcripts?
Yes, but it can take anywhere between 10 to 60 days to receive the tax return data from the IRS.
What are the different types of IRS forms that can be requested via the 4506-T?
With the IRS Form 4506-T you can order 1040 (personal), 1120, 1065 (business), W-2, and 1099 tax transcripts.
What is the difference between the IRS Form 4506 and the IRS Form 4506-T?
The IRS Form 4506 is used to retrieve photo copies of the tax returns that were filed by the taxpayer. 4506 can take the IRS up to 60 days to complete. The IRS Form 4506-T is used to obtain IRS Tax TRANSCRIPTS.
How long is the signature date on the 4506-T good for?
IRS Form 4506-T must be signed and dated by the taxpayer, either in person or via electronic signature. The date is good for 120 days.