Tax Transcript not showing up in system, need to close on house

[Anonymous]

I will be closing on a house in a little over a month. I filed my 2009 taxes at the same time as my 2010 but by mail (I know this was not ideal but I cannot go back and change it) on 4/18/11.

As of last week per the account transcript from the IRS they are not showing that the taxes were filed. The loan officer is going to request the transcript again on Monday but in the meantime what can I do?

Should I re-mail the 2009 taxes to the IRS with CMRR? Should I go to the local tax office? Can they be filed there? The loan officer said once the return is processed they can get the transcript 24 hours later.   do I even have a chance at this point?

[ShanetheMortgageMan]

Tax returns usually take 6-8 weeks for processing - so they should be showing up any day now.  You can contact the http://www.irs.gov/advocate/ to see if they can assist with having your returns processed.

[Anonymous]

Thank you, Shane! My fear is that they are lost somewhere (since they are mailed). I am going to ask the tax office if re-filing them would delay them more. If I knew the IRS at least had them and it was a waiting game, that is one thing, but I am afraid they are lost.

Have you run into the situation and did the sellers agree to change the settlement date? My contract would let me out if I am unable to have the mortgage funded but I don't want to have to do that.

[ShanetheMortgageMan]

I not only have run into the problem before, I have had the situation where we went to verify the tax returns my client provided to me were filed with the IRS and it turns out they were never filed - and we were already 2 weeks into the process.  It also turns out that $12,000 in income tax was owed for the 2 years that were never filed.  The borrower never realized their tax return income check was never cashed, and for the other year they were supposed to get a small refund they never realized they never got.  So in the middle of the process they filed their tax returns, we waited a little over 4 weeks for them to be processed with the help of the IRS advocacy group and then finally we were able to verify them.  Seller was very understanding, of course it was in NY, snow storm after snow storm, so it's not like there was a ton of buyers out there looking at homes anyway.

[Anonymous]

Wow! so did they file them at the tax office? That is my plan on Monday.

[ShanetheMortgageMan]

Yup, but with the help of the advocacy group, if you don't know what you are doing you could set things back with two returns in their system.  Be sure to ask lots of questions.

[Anonymous]

And the story gets better. I got through to an IRS rep, and they told me my tax return was received but had been incorrectly marked as a duplicate return (someone thought it was a duplicate to 2010, NOT the 2009 return). The rep corrected it and sent my return down to processing but it may still take 6-8 weeks to complete. Aaaggghh! What are the chances? (apparently good since the IRS rep says this happens a lot )

I had left a message for the Tax Advocate office this morning and they are supposed to call back within one business day. I don't know if there is anything they can do but I am going to talk to them. I will call the IRS regarding the status of my return the week before closing to see if it is processed but I also don't want to wait to spring this on the sellers.

Closing is in 4 weeks. I let my buyer agent know and she is going to talk to the finance folks. The mortgage commitment was already issued but the tax transcript was not listed as one of the conditions to be met before closing. Do I have a chance if the transcrpt is still not ready by then? This is an FHA loan.

ETA: The tax advocate took on my case and will work on it. Thank you for suggesting them- I would have never thought to contact them!

[ShanetheMortgageMan]

Welcome, hope they come through for you.