Request For Transcript

[800goal800]

Our bank asked us to provide 2020 and 2019 signed returns and sign Request for Transcript of Tax Return form for 2020, 2019 and 2018

The request is only for the " Return Transcript " which seems like a duplicate of the signed returns. 

Any thoughts as to wanting both ?

[dragontears]

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@800goal800 wrote:

Our bank asked us to provide 2020 and 2019 signed returns and sign Request for Transcript of Tax Return form for 2020, 2019 and 2018

The request is only for the " Return Transcript " which seems like a duplicate of the signed returns. 

Any thoughts as to wanting both ?

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I assume you mean they want you to provide permission to pull the transcript directly from the IRS? If so, yes some lenders do this to verify that you did not lie/forge documents. Frequently, the lender just has the form signed as a CYA and never actually uses the form.

[800goal800]

Correct.  And the transcript they are requesting is " Return " which has same info as to what I provided.  There are other transcripts

( Account and Record ) but the only one they checked was " Return. "

[ShanetheMortgageMan]

The 2018 may have just been marked by default.  But the return transcript isn't the actual tax return, it's an abbreviated version. 

You can actually see what the lender will recieve back if you go to https://www.irs.gov/individuals/get-transcript and verify your identity (some people report issues with the phone # verification part) which should look similar to the below:

[Anonymous]

@800goal800 Everytime tax returns are used the lender must pull your return transcript to validate the returns match what's on file with the IRS because sometimes people provide inaccurate copies or they've filed amended returns.  Transcripts are like a receipt and is part of the income verification process.  Other times a record of account will be requested to confirm you don't owe a balance for those specific years. 

Your returns always need to be signed, but this can be done anytime before funding.

And kinda redundant, but at docs you will sign another 4506-C.

[800goal800]

If my returns , 2020 and 2019 in this case, show a balance due but the transcript doesn't show it was paid, what could I expect the lender to ask for to show paid ?

[Faith_Hope]

@800goal800 my lender asked for proof of payment. I was able to pull my payment receipt from my irs profile- payment history. Thankfully, I also had saved copies. 

[800goal800]

@Faith_Hope @Payment history from your bank you mean ?

[Faith_Hope]

The IRS account login page. Go to your payment activity.

[800goal800]

@Faith_Hope 

Thanks - I'm assuming my bank statements would also work