On average, 15 - 17% of 4506-Ts are rejected by the IRS… more
On average, 15 - 17% of 4506-Ts are rejected by the IRS for incomplete or illegible information. And when the IRS rejects a 4506-T, you're still charged the standard tax year fee(s), and you lose significant time in resubmitting. Equifax performs a 12-point quality review on every 4506-T before it goes to the IRS—catching errors and minimizing rejections to an industry low of less than 8%. This value-added service can save you time and money, and helps keep the loan process on-track.
Our IRS income verification service is an efficient, cost-effective way to retrieve all IRS tax transcript forms -- 1040s to 1099s, W-2s, state income reports, and business income tax returns. The tax transcript provides a complete picture of all household income, including investment income as well as salary and wages.
Combining the tax transcript with an income and employment verification provides a complete view of borrowers that allows high quality decisions based on each borrower’s ability to pay. You get both, a current pay-period view of income and employment, as well as a complete historical income picture. This combination provides you with crucial insight into both current income status and historical income stability. The result: a powerful tool to assist with fraud detection and risk reduction.
IRS tax transcripts are available via streamlined fulfillment in hours through our direct connection with the IRS. All your income determination requests can be fulfilled in the same place rapidly and with ease. You have access to process tracking, a summary report of key tax payer data elements, and income variance reporting. A fully automated solution is available via integration.
As an added feature, we now have the capability to accept electronically signed versions of Form 4506-T and 4506T-EZ. This can potentially reduce the time spent collecting a signature on those forms from days to minutes by eliminating mailing or faxing. Our secure process helps ensure full compliance with IRS requirements and streamlines the tax transcript ordering process.