First time home buyer - Going FHA - Income and tax questions

[Anonymous]

OP: DID they send you your W-2s for 2007? If you and they had a spat, an unexperienced and ignorant HR person might have thought they could spite you by not sending'em.

(Before anyone doubts anyone would really, really, really be this stupid, I can tell you from experience that, yup, they can be)

I ask because if they never sent them to you (or perhaps can't prove that they DID send them to you), they've broken Federal Law. By law they MUST send them no later than January 31st of the following calendar year (despite that, our own Fed gov often doesn't send THEIRS out until the middle of February).

You'll have to call the IRS (1-800-829-1040), tell them your employer's company name, addy, EIN (if you know it); your name, SSN, addy and phone number; and a rough estimate of when you worked there, how much you made and how much Fed was withheld from your paycheck that year.

It CAN be done, though, without dealing with the employer. However, I like UP's fiendish idea of wasting the lawyer's time AND having the employer pay for it. Bastiges.

[ngerasimatos]

I contacted their lawyer and they gave me the run around, im not sure what to do at this point. They said the W2's were most likely not sent since I had filed a class action lawsuit against the company for unpaid OT wages, and them refusing to pay accrued vacation/sick time upon leaving the company. They said I can send them a formal letter via the mail and they will review it and get back to me i due time. WTF

[ShanetheMortgageMan]

As far as how this affects the loan... most lenders are requiring a 4506t form to be signed at application so they can verify the income being provided matches the income that you filed with the IRS.  Almost always happens for self-employed applicants, but is starting to be requested on employed individuals as well.  Too much fraud in this industry, measure is to cut down on it.

[Anonymous]

i am in a similar situation but when my ex left me she had her sister claim out children as dependents.. That year i went from having deductables to not.. i owed a few thousand.. the next few years of filing the irs owed me but of course that goes to pay them back.. i am now in escrow on my first home and realize i might still owe from that year.. i dont have any leins, good credit, should i visit the local irs office and check? My real question is what actions can i take to guarantee the closing of my house. If i do owe, but setup a payment plan will that suffice the irs and the underwriter? Thanks in advance for your accurate help!

[Booner72]

Hi there - this post was from 2009 so none of the people posting (Shane aside) are still around in the past couple of months.    I would bet that if you owed IRS or State that the title company would have caught any judgments or liens.  Your credit reports should also have indicated back taxes that were defaulted.  If you filed in April of 2011 for 2010, you should know your standing - why don't you know?  I'm confused.  This seems really last minute for you if your file is being sent to the underwriter - you would think your loan officer would have caught this when they ordered your tax transcripts.  Your transcripts would DEFINITELY indicate if you owed or were due a refund.  What year are you talking about?

You can call the IRS right now - I believe they are open until 10:00 PM -- google their phone number.

[Booner72]

And no, you can't set up a payment plan now and expect to close. IRS payment plans have to be in place for at least twelve months from everything I have read here.

[Anonymous]

Yeah, my i wasnt concerned at first bc i know 2 people who owed money to the irs but bought a house to get that 8k rebate and they were ok to buy. then the next year they filed and had what they owed cleared. So the transcripts dont just verify my income for the last two years? they actually check a balance? but if there is no liens does that matter?  bc i have my kids so as long as i keep filing 2007 will be paid in the next year or two.. its a they owe me scenario overall.. i know thats a bad way of looking at it..

[Booner72]

From my understanding and I could be very wrong- back 09 they banks weren't as concerned w/ tax statements as they are now.  My LO had to get tax statements from 09 and 10.  Come to find out, I didn't hit the SUBMIT button when I filed using TAXACT (don't use them).  So I was able to file and get my transcripts right back in a week.  Luckily I filed in July cuz if it had been April no luck that fast.

Irregardless of all of that, are you just too scared to call the IRS in case you owe?

[Anonymous]

No I know that I owe i just don't know if it will hold up the closing.. I have heard situations on both sides.. It being ok, and it being a deal breaker. My LO says it's just an income verification.. We'll see...