Notary Signing Agents need to be aware of revisions to IRS Form 4506-T, a tax-related document that’s commonly included in loan packages. The form requires NSAs to take additional steps to ensure loan packages are properly completed — and not rejected.
What is a Form 4506-T?
The Form 4506-T, “Request for Transcript of Tax Return”, authorizes a third party, such as a lender, to obtain transcripts of an individual’s tax return information. This information is used in the underwriting process by the lender to validate a borrower’s income information and approve the loan. The form is also used in the event the loan file needs to be reviewed for quality control later.
What has changed on the Form 4506-T?
The IRS has added an additional statement just above the signature line confirming the signer is the taxpayer authorizing the request for tax transcripts or the taxypayer’s authorized representative. The statement reads, “Signatory attests that he/she has read the attestation clause and upon so reading declares that he/she has the authority to sign the Form 4506-T”. The signer must confirm agreement by checking the box next to the statement in order to complete the document.
How does this affect Signing Agents?
If the box on the Form 4506-T is not checked,the IRS will not accept the form. Notary Signing Agents need to make sure the borrower has signed the form and checked the boxed statement. Some loan packages may contain more than one Form 4506-T; in these cases the signer must sign and check the boxed statement on each form.
Effective since March 2016, the IRS no longer accepts older versions of the Form 4506-T. Any requests submitted to the IRS using the old form lacking the additional signer statement will be rejected.
David Thun is the Assistant Managing Editor with the National Notary Association.
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Additional Resources:
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