• Enter your email address to subscribe to this blog and receive notifications of new posts by email.

    Join 3 other followers

Common Questions Answered Regarding IRS Rejections

Common Questions Answered Regarding IRS Rejections

What can I do to reduce the amount of IRS Rejections?
What are the most common IRS rejection reasons?
What do I do if the IRS rejects my tax transcript request?
What could cause a “No Record Found” result if I know my borrower filed their taxes*?

——————————————————————————–
What can I do to reduce the amount of IRS Rejections?

Handwritten vs. Typed 4506-T Forms

The IRS has indicated that they prefer the 4506T to be either 100% typed or 100% handwritten instead of a mixture of the two.
While the IRS will not automatically reject a form due to the combination of handwritten and typed data, they do have the option.
Address Information
In early 2010, the IRS was audited and is now required to do more research on the legitimacy of the addresses provided on the 4506-T forms.

The IRS has suggested that line 3 and line 4 both be utilized.
At least one of the provided addresses must match the address provided on the borrower’s tax returns.
All information pertaining to the address is required to match the IRS’ data (i.e. address extension types (Street, Avenue, Court), apartment numbers, zip code).

——————————————————————————–

What are the most common IRS rejection reasons?

The name on the 4506-T does not match the SSN provided.
Address on the 4506-T is not the most recent address on file or does not correspond to the address provided by the taxpayer for the years requested.
The signature or signature date is invalid.
The 4506-T was incorrectly completed.
The form is illegible.

——————————————————————————–

What do I do if the IRS rejects my tax transcript request?
Check all information provided on the 4506-T for accuracy.
Check for any maiden names that may not be updated within IRS internal records.
Have the borrower go to their local IRS office to ask for a certified copy of their transcript (with a tracking number).
Fax the transcript directly to us, and we will compare with our IRS contact on why this was not validated.

*It is entirely possible for a taxpayer to receive a refund, or have an expected refund date, and not be able to have the specific tax year validated. The process for this information to be available is timely, and filters up to the National Database.
——————————————————————————–

What could cause a “No Record Found” result if I know my borrower filed their taxes*?
The IRS has not completely processed and posted the requested transcript information to the National Database.
There is a discrepancy between what was actually filed, to what is being requested by the verifier.
*If you receive information within the transcript that the borrower feels is incomplete or contains incorrect information, the borrower should go to their local IRS office to rectify the discrepancy.

Please Note: The Work Number is not authorized to interpret the result of the transcript provided by the IRS to the client, nor are they informed specifically on why requests resulted in a rejection. As of October, 2006, the IRS no longer discloses rejection reasons to Rapid Reporting – Doing so would be a breach in security on the borrower’s behalf. Rapid Reporting can only suggest that the client take the above suggestions on resolving any transcript discrepancy.

Source: MarkVolt.com

About these ads

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Follow

Get every new post delivered to your Inbox.

%d bloggers like this: