4506-T General Information & Upcoming Changes in September 2018

4506-T General Information

Form 4506-T is an Internal Revenue Service (IRS) document that is used to retrieve past tax transcripts that are on file with the IRS.  The document must be signed and dated by the taxpayer, thus giving a third party permission to retrieve the taxpayer’s data.  With the IRS Form 4506T, one can order 1040 (individual), 1120/1120S (business), 1065 (business), Wage and Income, 1041 and 990 transcripts. The document allows a taxpayer to request up to the last 4 most current tax years.

To ensure your 4506-T request is processed quickly, please use the following resources when preparing the form.

How to Complete 4506-T & Acceptable Business Titles

If any part of the form appears to be incomplete or is incorrectly filled out, the IRS can reject the request for information.

Below are some of the most common reason why an IRS Form 4506-T is rejected.

  • A box is left unchecked.
  • Information entered on the form isn’t legible.
  • The tax year information was omitted.
  • An important signature is missing or title of the person signing is incorrect.
  • Important information like the name, address, mail box, TIN is missing.
  • Inconsistent dates, signature date is 120 days outside of window when form request processed by IRS.
  • Elements of the form are filled out inconsistently.  One section by hand, the other typed out.
  • The form appears to be manually altered via whiteout or by some other means.
  • There was a flag on the file for the applicant.

Upcoming Changes Effective September 23, 2018

Starting September 23, 2018, the IRS will replace the current format of the individual tax transcript products and introduce a new tax transcript with redacted formatting. Identifying information, including names, addresses, SSNs and employer, will be partially redacted, but all money amounts will be visible.

As of September 23, the new transcript will display the following information:

  • Last 4 digits of any SSN listed on the transcript: XXX-XX-1234
  • Last 4 digits of any EIN listed on the transcript:  XX-XXX1234
  • Last 4 digits of any account or telephone number
  • First 4 characters of the last name for any individual
  • First 4 characters of a business name
  • First 6 characters of the street address, including spaces
  • All money amounts, including balance due, interest and penalties

About the New Tax Transcript: FAQs.

Sample Transcript & Draft 4506-T

Unisearch can retrieve electronic tax transcripts directly from the IRS, allowing you to quickly validate income and uncover borrower misrepresentation.  Through this process our clients can easily determine a consumer’s ability to pay, mitigate risk and comply with industry regulations. As security and compliance standards continue to rise, today’s lenders need fast access to authentic IRS tax return information more than ever.  Please contact us today to find out more information on how Unisearch can assist you with your 4506-T processing needs.