Tax Transcripts – FAQs
February 8, 2010
1. Once a taxpayer electronically files his/her 2009 tax return, approximately how long does it take before the taxpayer can obtain copies of his/her tax transcripts directly from the IRS?
3 Weeks. The consumer can call 1-800-829-0922 to check to see if their transcript is available and request it directly from IRS at no cost. However, they must allow 10 days to receive it.
2. If the taxpayer mails their return, approximately how long should they expect to need to wait until they can obtain a copy of their transcript directly from the IRS?
6-8 weeks and times may extend longer after April 15th. The consumer can call 1-800-829-0922 to check to see if their transcript is available and request it directly from IRS at no cost. However, they must allow 10 days to receive it.
3. Can taxpayer file their tax returns by visiting a local IRS office? And if so, will they get some sort of receipt as evidence they’ve filed their return with the IRS?
Yes and Yes.
4. Can taxpayers get copies of their tax transcripts by visiting their local IRS office in person?
Yes but only IF their return has been processed through the system (meaning still subject to the 3 week average expected turn time from date of electronic filing or 6-8 week turn time for mailed filings). However, once the transcript is available, keep in mind that if the borrower can get it at the local IRS office, it will save the added 10 day waiting period for mail time from requesting from the IRS 800 number.
5. How can we direct taxpayers to find their local IRS office location information?
Go to http://www.irs.gov/localcontacts/index.html, scroll down the page to the U.S. map and click on the state.
6. How does the taxpayer go about requesting copies of transcripts directly from the IRS? Is there a charge?
They can request their transcripts directly from IRS at no charge by calling one of the following numbers:
- 1-800-829-0922
- 1-800-829-1040 and listen to menu to select prompts to get to proper menu
- Visit local IRS office to request directly on site
The IRS does charge $57 if the consumer requests a copy of his/her actual return (not the same as a transcript).
7. Can you explain the different types of “products” that can be requested using the 4506-T and what purpose each might be used for?
- Return Transcript: includes most of the line items of a tax return as filed with the IRS. A tax return transcript does not reflect changes made to the account after the return is processed. Transcripts are only available for the following returns: Form 1040 series, Form 1065, Form 1120, Form 1120A, Form 1120H, Form 1120L, and Form 1120S. Return transcripts are available for the current year and returns processed during the prior 3 processing years. Note: Transcripts will not show amount of tax owed or paid, outstanding balance or IF an amended return has been filed.
- Account Transcript: contains information on the financial status of the account, such as payments made on the account, penalty assessments, and adjustments made by you or the IRS after the return was filed. Return information is limited to items such as tax liability and estimated tax payments. Account transcripts are available for most returns. Note: Verifies outstanding taxes owed, account status, payments made, penalties, interest and fees etc. This is what you may need if there is any concern that a borrower may have a large amount of outstanding tax liability with IRS
- Record of Account, which is a combination of line item information and later adjustments to the account. Note: Ideally THIS is what we should require rather than just transcripts because this actually shows line item filing information PLUS includes information on amendment filings. THIS is what we would want to require in any case where the tax return copy provided by the borrower doesn’t match up to the transcript we receive.
- Verification of Non-Filing: Proof from the IRS that the borrower did not file a return for the year. Current year requests are only available after June 15th. There are no availability restrictions on prior year requests. Note: We would need to require this product to verify that a particular individual was perhaps not required to file and therefore did not.
- Form W-2, Form 1099 series, Form 1098 series, or Form 5498 series transcript. A transcript that includes data from these information returns. State or local information is not included with the Form W-2 information. The IRS may be able to provide this transcript information for up to 10 years. Information for the current year is generally not available until the year after it is filed with the IRS. For example, W-2 information for 2007, filed in 2008, will not be available from the IRS until 2009.
So ideally, for a borrower who has recently filed tax returns for 2009 income that is for instance, required for qualifying such as may be a the case for some self-employed borrower situations, the most efficient way to obtain transcripts right now is to direct the borrower to check with the IRS periodically to determine when transcripts are indeed available. Then, if possible, have the borrower go to the local IRS office in person to request and obtain the transcripts on site. This will help avoid the additional 10 day or so waiting period for the IRS mailing process. This method also costs the borrower no fee for obtaining the transcripts.
Is Your Loan Officer Licensed??
February 5, 2010
A helpful link for consumers who want to verify that their loan officer is licensed:
http://www.nmlsconsumeraccess.org/
Mortgage Brokers versus Mortgage Bankers
December 4, 2009
Purchasing or refinancing a home? This article can shed some light on whether to use a mortgage broker or mortgage banker:
http://www.washingtontimes.com/news/2009/nov/13/cover-story-how-to-choose-banker-or-broker/
Cash Or Mortgage? Let’s Do The Math
September 17, 2009
Deciding on whether to obtain a mortgage, or pay cash, for your new home purchase? Use the “Future Net Worth” spreadsheet from Jack Guttentag to help you decide. Click on the link to access his article in the Seattle Times.
http://seattletimes.nwsource.com/html/realestate/2003586078_guttentag25.html
What the heck is LIBOR?
June 18, 2008
Definition: It my sound liek the name of Tony Blair’s political party, but it’s shorthand for the Lond interbank offered rate – the average interest rate at which banks in the London market lend money to one another. Libor is often used as a benchmark to set rates for loans worldwide.
The rates of most U.S. home loans are now pegged to Libor rather than to Treasuries; a typical ARM rate might equal the six-month Libor plus three percentage points. If you’re wondering why your ARM hasn’t fallen much lately, that’s why. Yes, the Fed has cut the federal funds rate by 3.25 percentage points in the past 10 months, causing the six-month Treasury rate to fall from 4.55% to 1.9%. But the six-month Libor has fallen less sharply, from 5.06% to 2.8%. Libor has been acting erratic lately, with some bank sreporting suspiciously low borrowing costs; the association that oversees Libor is discussing how to fix the problem.
But don’t bother shopping around for a Treasury-based ARM, says Keith Gumbinger of HSH Associates, a mortgage information provider. Accurately predicting how much either rate will fall (or rise) is about as tough as, well, becoming Prime Minister of Britain.
(By Joe Light in Money Magazine, July 2008 issues.)
Do’s and Don’ts During the Mortgage Process
April 17, 2008
Dos and Don’ts During the Mortgage Process
- Do keep your current job
- Don’t do any major changes in your finances
- Do keep all your credit accounts open
- Don’t make any large purchases (i.e. new car)
- Do keep inquiries on your credit to a minimum (none is preferable)
- Don’t secure any cash advances
- Do continue making ALL your payments on time, especially your mortgage
- Don’t transfer any credit card balances
- Do limit yourself on new credit card charges
Home Loans
February 28, 2008
You want to make the best decision in choosing your personal home loan. What are your home buying goals today? What will they be in years to come? And what’s the best way to achieve them all? Because a mortgage payment is often the biggest monthly expense, a mortgage consultant is a good place to start. Your personal mortgage consultant will help you make the best mortgage decisions, every step of the way.
Imagine shopping for your new home with the confidence of a cash buyer. At no cost, you can receive a Pre-Approval (a firm credit and income loan pre-approval for a specific loan amount before you ever start house hunting). This allows you to narrow your search to only those homes that fit your budget; then the exciting home shopping can begin!
With so many options to choose from, which loan is best? Well, that all depends on you. Are you a first-time buyer, moving to a larger home or an investor? What are your home buying goals? Do you prefer the lowest payments possible; maybe a predictable payment? Your personal mortgage consultant will take the time to understand your personal needs and goals; then explain the best loan options for you.
There’s nothing quite like the joy and accomplishment of owning your own home. Your personal mortgage consultant is here to help you afford the home you really want and be at your side to make it easier, every step of the way.
Choosing a Mortgage Broker
February 28, 2008
Brokers provide consumers with Choice, Convenience & Expertise!
* 2 out of 3 Americans do
* Hundreds of lenders and loan programs available
* Flexible loan guidelines & credit history exceptions
* Personal Mortgage Consultants
* Stringent federal & state regulations & licensing
* On-going education
The consumer receives an expert mentor through the complex mortgage lending process. The broker offers the consumer extensive choices and access to affordable home loans while balancing the consumer’s financial interests as well as their short and long term goals.
Here are some frequently asked questions about mortgage brokers.
Are mortgage brokers lenders or bankers?
Neither. A broker is a real estate financing professional acting as an independent contractor with your best interest in mind. They have no affiliation to any specific bank or lender and generally can offer a more complete range of products and services because they have multiple sources to choose from.
Why does a broker have so many products and services available to choose from?
Brokers work directly with wholesale lenders. It’s like a “back door” entry to the traditional retail lending market. Wholesale lenders offer the best rates, more loan options & flexible loan guidelines. As an independent contractor, the broker allows wholesaler lenders to cut origination costs and Brokers help keep loan rates low due to their minimal overhead and setup costs. The broker works as the liaison between the borrower and the lender to create a cost effective and efficient loan process.
Furthermore, the broker will seek the loan which best suits the borrower’s financial circumstances, needs and goals. From the consumer perspective, with rare exception, the broker is not salaried and does not get paid unless and until the loan closes. Thus, the broker has the ultimate incentive to provide the best possible customer service to the consumer.
Should brokers be regulated?
Brokers are regulated by several federal laws and regulations and dozens of state laws and licensing boards. NAMB supports reasonable and fair state and federal regulation of mortgage brokers and lenders. The industry is regulated by 17 federal laws and numerous state and federal regulations. As of January 1, 2007, Washington State has required that all loan originators be licensed.
Does the mortgage broker really care about the quality of the loan itself?
Yes, absolutely. The safety and soundness of the mortgage lending community is directly linked to the success and integrity of its home loan originations. Furthermore, mortgage brokers represent the single largest residential origination source today (over two thirds of all originations!), emphasizing that they play a significant role in the mortgage loan process. These numbers highlight the fact that consumers who exercise their choice, choose mortgage brokers most likely because brokers are dedicated to their customers and the lenders they represent.
Isn‘t the broker supposed to get the best deal for the consumer?
Since mortgage brokers offer the products of many wholesale lenders they often can offer consumers a wider selection of loan products. This question presumes that anyone can know what “the best deal” is. While many would consider ‘the best deal” to mean “the lowest rate,” a loan program with a very low interest rate may not be the best choice for a consumer with limited cash, if that rate comes with high points and fees. A 15-year loan may save a borrower tens of thousands of dollars in interest payments of a 30-year loan, but the higher monthly payments may be unacceptable to the consumer. So, “the best deal” for any consumer depends on his financial circumstances, needs and goals.
Today over two-thirds the nation’s mortgages are originated by mortgage brokers. This clearly indicates that consumers are choosing the superior options, service, and expertise offered by mortgage brokers. Brokers have forced retail lenders to compete with other loan sources driving down costs nationwide.
Don’t brokers “steer” consumers to the wholesale lender who pays the highest fees to the broker?
While isolated instances of adverse steering can occur, the mortgage brokerage industry has predominantly armed consumers with a free-market economy weapon: open and vigorous competition. Any consumer exercising his or her basic right to shop and compare, will ultimately find the loan options that are in his best interests. The combination of government-mandated disclosures and vigorous competition has presented today’s consumer with unprecedented levels of choice. While price is an important consideration in advocating a specific wholesale lender, brokers also make their professional recommendations based on a number of other factors which include the lenders’ reputation for service, underwriting criteria, ability to fund a loan on time and compliance with consumer’s requirements
How do I choose a Mortgage Broker?
When it comes to choosing a mortgage broker, a personal recommendation from a satisfied customer is, as ever, invaluable. But, there are other considerations as well.
Q: How long have they been in business? (We have over 8 combined years of experience!)
Q: Are they willing to give you recommendations from past clients? (Absolutely & Encouraged!)
Q: Will they be available if you have concerns or questions? (As our business is 100% referral based, we do not have to secure new business by newspaper ads or direct mail. As a result, we are available to respond to your mortgage needs.)
Q: Are they knowledgeable? (We are licensed in the State of Washington & have attended many training classes & seminars. Ongoing education is necessary to stay current with all regulations, laws & loan program guidelines.)
Q: Are they concerned for your best interest? (In order to gain your satisfaction, your ongoing business and referrals to friends, family and co-workers…We will work as hard as possible to gain your trust and confidence. It has been our philosophy and mission to help to achieve your goals.)
It is our hope that you will allow us to assist with your goals and be a part of your mortgage planning needs!