IRS Advises Planning Ahead When Requesting Tax Transcripts For Mortgages, Student Loans

Plan ahead. That’s the advice from Internal Revenue Service (IRS) this year. As tax season approaches, IRS is advising taxpayers to plan ahead when requesting copies of any tax transcripts.

Last year, following attempts to access taxpayer records using the “Get Transcript” application on the IRS website, the transcript application was taken down. Currently, taxpayers are still not able to view and print transcripts online, though the IRS reports that it is working to restore those features with additional enhanced identity protection security in place. In the meantime, taxpayers may request a copy of a transcript online but the results of the request will be mailed to the taxpayer. Taxpayers should expect to receive a transcript in the mail within five to 10 days from the time the IRS receives the request.

If you don’t have access to a computer, you can order your transcript by phone. Simply call 1.800.908.9946 and follow the prompts.

You can also request a transcript using form 4506-T, Request for Transcript of Tax Return (downloads as a pdf). With form 4506-T, you can also designate a third party to receive the information; this is sometimes necessary when submitting a mortgage application or completing Free Application for Federal Student Aid (FAFSA) forms.

When making a request, remember the difference between a tax return transcript and a tax account transcript:

• A tax return transcript shows line items from your tax return as well as changes such as math error corrections. A tax return transcript also includes accompanying forms and schedules. It doesn’t reflect any amended returns or adjustments made after you filed your original return.
• A tax account transcript includes marital status, the type of return filed (for example, form 1040, 1040A, 1040-EZ, etc.), adjusted gross income (AGI), and taxable income. It also includes a record of tax payments, refunds, penalty and interest charges, and adjustments to tax made after the original return was filed.

When you make a request, the IRS will mail your tax transcript to the address of record entered on your prior year’s tax return. If you’ve moved since you last filed your tax return, you must first submit a federal form 8822, Change of Address (downloads as a pdf). It generally takes four to six weeks to process a change of address so you’ll want to factor in that additional time before requesting a transcript.

If you are returning to college in January and applying for financial aid, you should check with their financial aid department at school to see if they will need a copy of their transcript before they start classes. It may be the case that you’re already covered via the IRS Data Retrieval Tool found on the FAFSA website. Students who are eligible to use the IRS Data Retrieval Tool must click “Link To IRS” to transfer tax return information from the IRS Web site into the FAFSA. If you are ineligible or choose not to use the IRS Data Retrieval Tool, you may need to request a tax transcript.

This is just one issue that taxpayers should expect to encounter. With concerns on the rise about identity theft-related tax fraud, expect more bumps and delays as tax season nears. The best approach? Deep breaths, plan ahead, and allow extra time.