Tax Transcript Form 4506 Guidance Provided by IRS
The IRS has updated its Internal Revenue Manual (IRM) to reflect which of the Form 4506 series are acceptable to request a copy or transcript of a tax return. The manual was also updated to reflect that the IRS ended third-party mailing of tax returns and transcripts on July 1, 2019.
Background. Tax transcripts are summaries of a taxpayer's tax information. Tax professionals use these transcripts to prepare returns, and lenders use them to verify borrowers' income information.
Requests for copies and transcripts of tax returns are made with the Form 4506 series. Included in the series is Form 4506, Request for Copy of Tax Return, Form 4506-T, Request for Transcript of Tax Return, Form 4506T-EZ, Short Form Request for Individual Tax Return Transcript, and Form 4506-C, IVES Request for Transcript of Tax Return.
These requests can be made to the IRS's Return and Income Verification Services (RAIVS) or to its Income Verification Express Service (IVES). RAIVS is responsible for processing all written requests for copies of tax returns or tax return transcripts. IVES is used for bulk requests for transcripts made electronically. For example, mortgage lenders and others within the financial community use IVES to confirm the income of a borrower during the processing of a loan application.
IRS ended third-party mailing of tax returns and transcripts on July 1, 2019. IRS ended this service as part of its ongoing efforts to protect taxpayers from identity thieves.
Acceptable revision dates. Effective July 1, 2019, RAIVS requests on Form 4506-T or Form 4506T-EZ must be on a form that has a revision date of 6-2019 or later. Form 4506 Requests must have be on a form that has a revision date of 9-2018 or later. (IRM 22.214.171.124(4))
IVES requests on Form 4506-T or Form 4506T-EZ must be on a form that has a revision date of 9-2018 or 3-2019. IVES requests on Form 4506-C must be on a form that has a revision date of 6-2019.
The IRM provides one exception to this rule, which it expresses as "Revision dates of 7-2017 or later are acceptable for the SBA Disaster program (Kansas City only)".
No third-party mailing. Effective July 1, 2019, RAIVS transcript requests received on Form 4506-T or Form 4506T-EZ may only be mailed to the taxpayer's address of record. Requests to send transcripts to a third party will be rejected. IVES requests may only be sent to the IVES participant's Secure Object Repository (SOR) mailbox (effectively an online account available on E-services) or physical address.