4506-T and IRS Updates for New Tax Years
The start of a new year means many things, including tax year changes at the IRS. It also means SharperLending systems will be updated to accommodate new years and remove years no longer supported by the IRS.
IRS Updates
Many of you recently received the IRS notice about tax year 2015 being removed. This will result in the inability to request the 2015 tax year for transcripts and Record of Account transcripts starting January 4th, 2020. The IRS went on to state that 2015 tax year requests should not be ordered after December 28th, 2019 to accommodate processing time. Here is the text of the IRS message:
IRS will be updating its databases from which Return Transcripts and Record of Account transcripts generate on January 4, 2020. Once these databases update, you will no longer be able to request Tax Year 2015 Return Transcripts and Record of Account Transcripts. In order to allow processing time, please submit Forms 4506-T for Tax Year 2015 Return Transcript and Record of Account Transcript requests no later than Saturday, December 28, 2019.
TVP and EPN Updates
SharperLending will update our EPN and TRV systems to remove the 2015 tax year from the ordering screen in February, 2020. We will also be adding the tax year 2019 at the same time. We are targeting February 14th, 2020 to apply these enhancements.
Your clients will likely know not to order 2015 tax transcripts or ROAs, as they usually use the last 2 to 3 years of tax records for their borrower income validation when processing a loan. Just in case, we recommend that you use the Messaging and Alert features in EPN and TVP to broadcast this information to your clients.