Re: 2011 IRS Installmen
t Plan and Closing
05-23-2012 06:27 AM
After doing more research, I think the 2nd comment on this thread is dead on. FannieMae guidlines updated this month state that a lender needs to get a signed 4506t either during processing or at closing. It does not state that the 4506t needs to be ordered from the irs. It does state that the transcripts need to be ordered if the loan is pulled for qc. Also, FannieMae clearly states that this form is for income verification...not looking into paid or unpaid taxes. Not for the purpose of finding out if a customer has paid taxes or is in a payment plan with the IRS.
Additionally, the 4506t form from the IRS clearly states that a Return Transcript does not provide information on if a tax has been paid or not.
So, what gives with comments on other posts about being rejected if you havent been in a payment plan more than 6 months or needing to pay taxes in full immediately?
In my case, we filed our taxes on time always. This year we did as well. We owe tax for the first time in years. I immediately attempted to set up a payment plan, but couldnt because you cant until the irs has processed the tax documents. In between that time we started the mortgage process. W2s were provided for loan process. Tax copies were never requested. The process is well on the way and looking good. We have now entered into a payment plan with IRS. So, in a perfect world all would seem fine.
But again, you read some of the comments on here from mortgage people an its all doom and gloom.