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How to Avoid Rejections on a 4506-Transcripts Form

How to Avoid Rejections on a 4506-Transcripts Form

Just like any other sector, time is important in the mortgage world too. It is as important for clients as it is for the people waiting to buy a house. Our processing time is much quicker than approaching the IRS directly; which usually takes 30-60 days.
A rejection, however, can delay the process further. Rejections occur due to simple mistakes that can easily be avoided. Hence, we have created a checklist for our clients to follow:

Avoid Illegible Data – The 4506-T form can either be handwritten or printed. When filling it by hand, make sure that all the data, including your signature, is very legible.

Avoid Altering Data – If you make a mistake while filling the form by hand, start fresh. Do not use whitener to make corrections because the IRS rejects forms with any white-out marks.

Take Care When Taking Print-outs/Fax – Make sure that the 4506-T form does not get re-sized upon scanning. All requests must be submitted in a portrait layout, not in landscape.

Enter Correct Information – Ensure that the primary taxpayer’s name is entered correctly. If its is a joint return, make sure both partners sign and date the form. Another very common reason for rejection is that address doesn’t match with the tax year requested in the form. Enter previous addresses in line # 4.

Our clients find it easy to follow this simple guideline and submit an error free form. You can also take a quick look at a filled form to ensure that you are on the right track.