Form 4506-T: Tax Transcript Request
Form 4506-T authorizes the IRS to release tax return transcripts to mortgage lenders for income verification. It is a mandatory fraud prevention tool in the mortgage underwriting process.
Purpose
- Verify borrower-provided tax returns against IRS records
- Detect altered or fabricated returns
- Confirm income reported matches the loan application
- Required by Fannie Mae, Freddie Mac, FHA, and VA
Process
- Borrower signs at loan application and again at closing
- IRS provides transcript directly to the lender
- Transcript available in 2-3 business days
- Covers the most recent 2-3 tax years
Transcript vs. Return Copy
- Transcript (4506-T): Free, fast, line-by-line summary from IRS records
- Copy (4506): $43, 75 days, actual filed return with attachments
- Mortgage use: Transcripts preferred for speed and verification
Related Terms
- Closing — 4506-T signed at closing
- Contract — Financing contingency tied to verification
- Equity — Income verification determines loan amount
Barnes Walker Title Services
Barnes Walker Title coordinates lender documentation requirements for Florida mortgage closings. Submit a title inquiry for assistance.
Reviewed by the attorneys at Barnes Walker, Goethe, Shea & Robinson, PLLC