Problem with Tax Transcript caused by H&R Block is holding up Closing

[yaya123]

 In case anyone else is going through this and I am looking for advice as well.  My lender kept  telling me the IRS transcript system did not have a 2012 return for me.  I had already given them a copy of the return as well as a copy of the cancelled check where I paid what I owed.  The Loan Broker them contacted H&R Block to make sure they had filed the return electronically, the checked and discovered it was still sitting in their system - almost a year later.  They had discovered a time period when their servers were down and nor transmitting when people kept coming in looking for their retunds they thought they had caught everyones but they did not since mine was still there!  On Friday they faxed the return to the IRS who I thought would send a fax back saying it had been received, however I found out last night fromt eh broker the IRS will NOT fax the letter they will mail and it should be in 7 - 10 days.  I do not trust them to have it here.  I was scheduled to close on the 4th but now am told they will not close my loan until they receive the letter from the IRS.  I do not understand this , they have a copy of the return, copy of the cancelled check, talked to H&R Block and even have a letter from H&R Block explaining what happened however they said they will not close until they have the letter. This is very frustrating and I was wondering it it had happened to anyone else and did the letter come in 7 - 10 days.  Also if you used H&R Block last year you might want to check and make sure your return was filed.  Thanks.

[ezdriver]

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@yaya123 wrote:

 In case anyone else is going through this and I am looking for advice as well.  My lender kept  telling me the IRS transcript system did not have a 2012 return for me.  I had already given them a copy of the return as well as a copy of the cancelled check where I paid what I owed.  The Loan Broker them contacted H&R Block to make sure they had filed the return electronically, the checked and discovered it was still sitting in their system - almost a year later.  They had discovered a time period when their servers were down and nor transmitting when people kept coming in looking for their retunds they thought they had caught everyones but they did not since mine was still there!  On Friday they faxed the return to the IRS who I thought would send a fax back saying it had been received, however I found out last night fromt eh broker the IRS will NOT fax the letter they will mail and it should be in 7 - 10 days.  I do not trust them to have it here.  I was scheduled to close on the 4th but now am told they will not close my loan until they receive the letter from the IRS.  I do not understand this , they have a copy of the return, copy of the cancelled check, talked to H&R Block and even have a letter from H&R Block explaining what happened however they said they will not close until they have the letter. This is very frustrating and I was wondering it it had happened to anyone else and did the letter come in 7 - 10 days.  Also if you used H&R Block last year you might want to check and make sure your return was filed.  Thanks.

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Wow! That is a real bummer. Did you ever receive a receipt from H&R Block confirming that your tax return was electronically submitted to the IRS?

I am so sorry for your predicament. Hang in there. This too shall pass.

You can't blame the lender for waiting on the IRS letter. Until the IRS confirms that your tax return has been received, it has not been filed.

[dollar_bill]

When you say faxed, do you literally mean faxed? If it was e-filed, then H&R Block will have a transcript with a "submission ID" number from the IRS, which means it was accepted.

[yaya123]

Yes I mean faxed. The IRS let them fax it in since it was holding up the loan.  I still have not received a letter from them and it is not showing up in the system when I look at transcripts either.  I don't know what to do at this point.  Just want this whole process to be over with....

[crandlem52]

Here is a link to a thread where I am going through something similar.   

http://ficoforums.myfico.com/t5/Mortgage-Loans/Tax-Transcripts-Potential-Nightmare/td-p/2952210

What kind of loan do you have?  Conventional?  Here is the problem, your lender is going to likely need your actual Tax Transcript to close.  Simply having verification from the IRS that they have recieved your taxes isn't likely to be enough.  They are going to want the official document, and the only way you are going to get that is if the IRS enters your return through the system and then posts it.  That can take up to 8 weeks to happen.  

The first thing I would do if I were you is see if your lender needs the 4506-T form and official Tax Transcript for closing.  If they do, you need to immediately contact the Taxpayer Advocate service as they are the only people who can expidite this.  It is a minimum 2-3 week process.  

[yaya123]

Thank you for your information.  I called and talked to an advocate and they acted like they could not help me.  After reading other posts on here I decided to let this play out with the H & R Block lady and the person she talked to at the IRS who is suppose to be sending me a letter.   I don't want to confuse them the IRS or have them start all over again if I this letter thing works. The lender is aware of the reason and has a letter from H & R Block stating it was totally their fault so they have agreed to accept the letter from the IRS saying my return had been received instead of the transcript.  I am just scared I won't get a letter but am trying to have faith, I am suppose to close on Wednesday the 9th so we will see what happens.  I do not want to loose my earnest money but have to be out of here by the end of the month.  I wish you the best of luck with your closing as well.  Will say a prayer for you