Tax return verification?

[Anonymous]

We are all set to close on our house... Been a long  few  months... Have to close by Sept. 30 to still get tax credit and now processor is saying they still need tax return verification?? What is this about??

[Anonymous]

I remember being asked for that before I closed. The IRS 5406-T if I remember correctly. I think it's a way to verify proof of income over the years. I don't think they actually pull your taxes, but what the ability to do so.

[Anonymous]

I get that they want to look at the taxes, we actually have a higher paying job than what we did in 2009. my issue and confusion come from it being less than a week  before we need to close and it is just now brought up. I have given them entire tax return info.

[Anonymous]

They will pull their own transcripts to verify what your income reported matches what you file with the IRS.  They will NOT just go by copies of your return.  I closed August 16, and we had to show our cancelled check where our taxes were paid -- even though our transcripts showed it paid.  Didnt make a lot of sense to me...but the banks hold the power, and the ability to hold up your closing.  I think most banks (from what I was told by my friend who is an underwriter) must have at least 2 years transcripts on file to close the loan.