Tax Transcripts

Tax transcripts are official documents provided by the Internal Revenue Service (IRS) that summarize a taxpayer's filed tax information. Lenders often require tax transcripts as part of the mortgage application process to verify a borrower's income and confirm the accuracy of the tax returns submitted. Here's some key information about tax transcripts:

Types of Tax Transcripts:

Requesting Tax Transcripts:

Borrowers can request tax transcripts directly from the IRS using various methods:

Purpose in Mortgage Lending:

Lenders typically request tax transcripts to verify the borrower's income and confirm the accuracy of the tax returns submitted with the mortgage application. By reviewing the tax transcripts, lenders can:

It's important to note that tax transcripts may take some time to obtain from the IRS, and lenders typically require the most recent two years of transcripts.