01-28-2013 03:48 PM
I have an interesting situation. My wife and I were approved by our lender for a USDA loan on 1/14. We went to the USDA then, and our file is roughly two to three weeks from being reviewed by them. Today my LO advised that their processor has asked for a letter from the IRS indicating that we do not owe any taxes. They already have transcripts saying as much, but they want this letter as well. I spoke with the IRS hotline, and the agent advised that they can really only send transcripts out.
The issue does get a little more complicated. I believe they are asking for this because I am a 1099 worker, and I had to amend a couple tax returns late last year as we sought preapproval. Worse, I had not filed a 2009 return. I filed that in late December, and the lender finally accepted a stamped copy of that and the check we wrote to the IRS to cover those taxes in full. The IRS is still processing that return, and per my conversation with them today the 'pending' return indicates I may owe around $300 more. No big deal if so. I will pay that immediately in person and present the lender with stamped copies like before.
My question is: Has anyone else ever been asked for a letter like this? Any advice on how to go about getting it? We have a local IRS office about twenty minutes away, so I am glad to drive down there and try to get what they need. However I am wary of wasting a day doing that given the agent on the phone and her response. She was very nice, but I highly doubt anyone there is going to take the time to write out a personalized letter. Any thoughts?
My homebuying experience has been no less hectic than anyone else's, but every bump in our road has been due to my sloppy handling of taxes in previous years. Very glad I broke down and hired an accountant last year.
01-28-2013 04:17 PM
underwriters ask for things that do not exist and cannot be produced sometimes.
ask the u/w if a cpa letter would suffice?
01-28-2013 04:20 PM
I'm glad you said that. This is kind of the vibe I am getting from my LO and his assistant, but no one will come right out and say that. They did say if I did my due dilligence and went to the local office to ask for it, they would take it up with the UW if it could not be produced. I believe the processor is a secondary UW within the company or something. Has to be.
I will ask -- Thanks for the idea!