IRS Has Begun Implementing a Processing Modernization to Form 4506-C
The IRS started modernizing Form 4506-C. This process will add automation, which will improve the agency’s efficiency and completion rate. The initial step of the modernization effort is the implementation of Optical Character Recognition (OCR) software. This software reads the form. For your form to be quickly and successfully read, follow these tips:
1. Ensure your handwriting is clear and legible.
2. If you complete your form electronically, make sure you use a large font. Choose a simple font the software can read, such as Verdana or Arial.
3. When applicable, provide both current and previous addresses on lines three and four of the form. The IRS will match at least one to fulfill the request. If either address is missing, the IRS may reject the request.
4. Make sure that only the borrower on order has entered their information on the form. The IRS processes transcripts for anyone who has signed their consent on the form.
5. Ensure the borrower signs line one or two at the bottom of the form.
6. Only enter the years of the transcripts you want. Extra years will result in you receiving additional transcripts.
7. Choose the correct form type for the product you order. Including extra form types on line six or checking extra type boxes for 6a through 6c or line seven will cause the IRS to send additional transcripts.
Illegible content, errors, or omissions will result in IRS processing delays or rejections.
The new software should be released in October 2021. Submissions that lack these adjustments for clean versions of Form 4506-C may not integrate with the new software. In such cases, the incompatible forms will go to the IRS’s legacy processing department, which may take longer to handle.
On January 1, 2022, all Form 4506-C submissions must be clean. This will facilitate expedited processing with the new software. Failure to submit a clean form may cause rejections.
We’re ready to help you with the IRS Form 4506-C changes.
Have questions? Speak to an expert for more information.