FAQ – What is a IRS Request for Transcript of Tax Return (4506t)

One of the most common cause of foreclosure is misstated or overstated income. Since the mortgage meltdown of 2008, and because of increased accountability to Washington, lenders are now required to take extra steps to verify that borrowers have the ability to pay.

With programs such as QuickBooks, Turbo-Tax and other payroll software readily available on the web for minimal cost, anyone can create authentic looking income and asset statements. Therefore lenders are taking the ‘trust but verify’ approach by requesting  IRS Request for Transcript of Tax Return (4506t) on every mortgage loan application, BEFORE underwriting and approving the application.

The IRS Request for Transcript of Tax Return (4506t)  is a tax return transcript that hows most line items from your tax return (Form 1040, 1040A or 1040EZ) as it was originally filed, including any accompanying forms and schedules. In most cases, your transcript includes all the information a lender or government agency needs in order to verify that the income verifying documents such as you W2 earning statements and copies of tax returns match with what was submitted to the IRS.

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