I recieved my commitment letter last week and the last condition that needs to be me is that my 2009 tax returns be filed. I called the irs and was told that an efile would take 3 weeks and mail would take 12 weeks. I told my accountant to efile tonight. This is the last thing i need for the clear to close.
Here is the thing. There is no way to get a good answer. If you efile, it is about 3 weeks before they process the file. But, even then, it could be longer before final transcripts are available. Usually (and you can verify if this is the case with your lender), thye want to see 2 things. They want to be able to order the tax transcripts and they want to see proof any balance is paid and shows paid on your IRS account. This may take 3-4 weeks and it can take a couple months. You have to keep on the IRS to make sure they get all of the stuff done in a reasonable time. I am still waiting for tax stuff from year 2008.
I just issued a clear to close on a loan with the exact same issue...borrower was recently divorced and the ex hadn't filed the 2008 tax returns that he said he filed.
(Yes, whatever you're thinking about him is probably true)
So, we used a tax friend of mine. Borrower and tax pro spoke first on July 7th. They overnighted on 7/8, received 7/9. Those were running 8-10 business days to process, but...
...the IRS database is messed up (imagine that). The entire week's processed files post to the database on Sunday nights. My tax friend checked those each Sunday...it didn't hit that first Sunday, but posted this past one 7/25. We ordered the tax return verification on 7/26 and had it back yesterday. That was for someone who had not filed 2008 or 2009.
Separate issue: Why aren't you just using 2007/8 plus the 2009 extension?
Hi Thanks for the replies its really appreciated. I would have just submitted the 07 and 08 but there wasn't enough income in 07 since i only worked half the year and i'm self employed. You say that your tax guy overnighted it and it took about 2 weeks? That would definitely be great if i can get a timeline like that. My accountant originally wanted to overnight it as well but i was afraid of irs saying 12 weeks vs 3 weeks for efile and everywhere online I looked the consensus was that efiling was faster to process. Also do you know if its a phone number or website that i check every sunday to see if its processed and a transcript appears? Again i really appreciate the response its very helpful so far. My accountant is efiling tonight should there be a difference between doing that and overnighting?
Ok lets get a few things clear here. IRS acknowledgement and acceptance of an e-filed return never takes more than 24 hours unless their system is updating, so unless your tax guy is transmitting on a Saturday night in late July......
The older returns will take a couple weeks to process because they cannot be e-filed and must be manually input. Period. No way around that.
I'm not saying that I understand. We're still issuing a CTC tomorrow.
On or around the 8th or 9th the IRS received 2009/2008. On Sunday they were in the system. On Monday we ordered tax return verifications. On Wednesday we had them. I don't know if the stars aligned or what happened, but that was the order of events. I was surprised as well.
Sounds like you mailed the returns. Prior year individual returns CANNOT be e-filed. What I'm saying is that with a true e-filed return I can check the e-file system as an ERO for returns I transmit and within 24 hours can provide verification of acceptance by the IRS. If you're looking for something like an official transcript or account summary for the return it takes a couple weeks, but verification of an e-filed return can be within hours. FYI, your tax preparer with a POA can go online and get a transcript within minutes.
SDDave...you know the IRS end of it pretty well.
Chevydude's loan condition condition is going to be for a transcript---but, it needs to be pulled by these third party verification services. It's basically a fraud control item so they won't accept it from the borrower's accountant. I don't think there is a delay (or much of a delay) from that "processed" phase to where the returns will hit under a TRV, but SDDave may know that one.
Well then probably the verification service got a signed Form 8821 submitted to the IRS. It's not a POA, it's an authorization to view tax account information.
As far as fraud control, ehh. All of these transcripts from the IRS, whether downloaded and printed, faxed, or picked up at an IRS office all have 2 inch IRS logos across the top margin of the first page. Hard to counterfeit.
4506, but yes.
It would be funny to watch a kid with Photoshop try and copy an IRS document. I don't think most graphics editing software has any fonts that are that granular and junky looking...or maybe that is part of the IRS' genius in that outdated software??? Maybe??