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IRS Unveils New Form to Help Homeowners Get Tax Info for Mods

The government is mobilizing all its resources to aid homeowners in modifying mortgages and now the Internal Revenue Service (IRS) is getting into the act.

The IRS unveiled a new form Wednesday to order transcripts of tax returns, which can be used in place of full tax returns on applications for modifying or refinancing mortgages.

“Taxpayers often need copies of their tax return information, especially when they are obtaining a new mortgage or when they are refinancing or modifying an existing mortgage,” the agency said in its announcement. “A transcript often is an acceptable substitute for a copy of the original tax return for purposes of verifying income.”

The IRS specifically cited the form’s use for applications under the administration’s Home Affordable Modification Program (HAMP).

The new form, 4506T-EZ Short Form Request for Individual Tax Return Transcript, is available online. It can also be filled out and submitted online to order a Form 1040 series tax return transcript free of charge. Processing will take about 10 days, the IRS said.

A transcript is a computer print-out that includes most lines on the original return. Form 4506T-EZ is a streamlined version of the Form 4506T, Request for Transcript of Tax Return, and is only for individuals who filed a Form 1040 series. Businesses, partnerships, and individuals who need transcript information from other forms must still use the Form 4506T.

Transcripts ordered through the Form 4506T-EZ can be mailed to a third party, such as a financial institution.

Exact copies of tax returns are available by filing Form 4506, Request for Copy of Tax Return, but each copy costs $57 and can take 60 days to process.


Author: Darrell Delamaide Date: 10/22/2009

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