The Many Uses of the IRS 4506-T Form

An IRS 4506-T form is an official document that is used to obtain tax records from the Internal Revenue Service. It is often employed by a third party that for certain reasons is seeking information on a particular taxpayer.]

Form 4506-T transcription services are particularly beneficial to financial institutions, including banks and mortgage companies, and to law firms. Tax records may be useful in the auditing of accounts or in the processing of loans being sought by students or the buyers of cars or homes, and may even be useful to prospective employers conducting background checks. Such information may also be needed in the process of filing taxes or bankruptcies, when seeking a particular immigration status or to provide proof of income in a divorce or some other legal matter. A common use of a 4506-T form is by a lender who wants to document the income of a client who is seeking a loan.

A 4506-T can be used to obtain official 990, 1040, 1065, 1098, 1099, 1120 and W-2 transcripts. This differs from a 4506 form, which can only be used to obtain photocopies of the returns that were filed by the taxpayer. A 4506-T form is viable for 120 days, but must be signed and dated by the taxpayer to be valid. Tax information from the four most recent years will be obtainable. The process could take up to four days, although delivery is often completed within 24 hours, with the transcripts being sent electronically to a secure site. The person or organization seeking the information is required to retain the document in the client’s file.
A 4506-T can be ordered directly from the IRS at no charge. However, this can be a time-consuming process, taking anywhere from 10 to 60 days before the material is received.