topic tax -problem in Mortgage Loans

tax -problem

Anonymous — Fri, 11 Sep 2009 22:58:22 GMT

my sister had 4 jobs in 2008. she forgot 1 of her w2 when filed for tax. IRS have not contact her yet. I told her to admend the tax, but she wants to wait till next year to do it, because she afaird she had to pay irs and she is paying more into tax now so next year she doesn't have to pay the tax.

I told her she has to do it now, she keep saying she has 3 years to do.

i wonder why IRS dont contact her?

Re: tax -problem

ShanetheMortgageMan — Fri, 11 Sep 2009 23:48:48 GMT

Sooner or later the IRS probably will contact her, it can even be a couple years afterwards. If she was W-2'd, and didn't take many deductions, it might actual result in some additional money back from the IRS to her. Why is she afraid she'd owe money to the IRS if the tax returns were amended? Did she already owe money for 2008's taxes?

Message Edited by ShanetheMortgageMan on 09-11-2009 04:48 PM

Re: tax -problem

Anonymous — Sat, 12 Sep 2009 00:09:06 GMT

Yes, she had to pay some back. The problem is she is joint with me in getting a home loan. Lender doing the tax validation, will they find out if she didn't file all the w2 last year? tax transcripts that is what i am worried about. I need her to be on the loan for the DTI, i wonder if lender will find out when they pull the transcript?

I wonder if IRS should know first before lender would?

thank you

Re: tax -problem

ShanetheMortgageMan — Sat, 12 Sep 2009 00:23:34 GMT

Well it wouldn't be an issue for the mortgage, the lender just requires that you provide true and correct copies of all documents, it's not their call to make sure you are reporting all appropriate income & expenses to the IRS though.... however they might find it very odd that there is more income on the W-2's than there is on the tax return, and it could be the underwriters call if they'd want to proceed with the loan at that point, most likely they'd want an explanation from her regarding it, and may also require she file amended returns. If you really want to make sure it's not an issue, amending the tax return, filing it, and paying the money owed would be the cleanest way to get it done.

Message Edited by ShanetheMortgageMan on 09-11-2009 05:23 PM