Re: 2011 IRS Installmen
t Plan and Closing
05-23-2012 06:46 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.
I personally wasn't being doom and gloom, I was merely relaying my experience and what I was informed by my loan officer.. I have no way to verify what my lender did or did not do, all I know is I did what I was advised to do and I close on Thursday It worked out for me, so I am happy. But it seems to be working out for you the way you wanted it to, and that is awesome as well.
My loan officer would not even give me a pre-approval with my back tax issue, unless I was under payment for 6 months. So I opted to pay it. That is what gives with my comment that you would have to be under a payment plan for 6 months. In my situation, it was what was required of me.
Conversely, whether or not the 4506t can be used for checking the back taxes you owe (which it sounds like your research, it doesn't) you still have to disclose you owe this money on your application, and it YMMV at that stage. My lender would not approve with back taxes. Period. Not doom and gloom, just my lender, my experience.
I am glad this worked out for you!
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