Transcripts

[Openfire]

I have a client that needs a transcript for closing on a house as soon as possible. (We filed an extension, and sent the return in on July 2nd.) The local Kansas City offices no longer provide transcript services. For an e-file return, filed two weeks ago, the Central Transcript/tax records line states it is still unavailable. I realize they say two to three weeks out for an efile to become available but I am wondering if anyone has any short cuts, or has had any alternative "proof of filing" experiences that could help this individual. Any ideas or experiences? Thank you!

[TAXNJ]

???

I have a client that needs a transcript for closing on a house as soon as possible. (We filed an extension, and sent the return in on July 2nd.) The local Kansas City offices no longer provide transcript services. For an e-file return, filed two weeks ago, the Central Transcript/tax records line states it is still unavailable. I realize they say two to three weeks out for an efile to become available but I am wondering if anyone has any short cuts, or has had any alternative "proof of filing" experiences that could help this individual. Any ideas or experiences? Thank you!

If you efiled the return, did you receive form 9325?

Also, if you are new at this, be careful of "comfort letters" asking you to provide (see posts on this site)

[Openfire]

Yes, it was accepted by the IRS.

[ATSMAN]

If the return was e-filed on July 2, the mortgage company has to wait to get hold of any transcripts. They can proceed with their initial underwriting based on the returns filed. I had situations where the mortgage company wanted me to state in writing that the return was on extension and provide them a preliminary copy.

[AZUKHiker]

Supply E-File Acceptance

Quite often I have supplied a copy of the E-File acceptance from my tax software as evidence that the return was filed.

[TAXNJ]

Absurd

If the return was e-filed on July 2, the mortgage company has to wait to get hold of any transcripts. They can proceed with their initial underwriting based on the returns filed. I had situations where the mortgage company wanted me to state in writing that the return was on extension and provide them a preliminary copy.

For you to provide a type of "comfort letter" when you have nothing to do with the mortgage contract (unless you want to) is absurd. It is a contract between mortgage company and client (are you going to be part of that obligation?).

We have always provided a client with a copy of the completed form 9325 and associated return and they do what they want with it. Never heard of a mortgage company refusing because of no transcripts versus mentioned in prior sentence.

The original poster should state whether or not a copy of the completed form 9325 and associated return was furnished and if so, what was the result?

[TAXNJ]

Well

Yes, it was accepted by the IRS.

There's your proof

[ATSMAN]

For you to provide a type of "comfort letter" when you have nothing to do with the mortgage contract (unless you want to) is absurd. It is a contract between mortgage company and client (are you going to be part of that obligation?).

We have always provided a client with a copy of the completed form 9325 and associated return and they do what they want with it. Never heard of a mortgage company refusing because of no transcripts versus mentioned in prior sentence.

The original poster should state whether or not a copy of the completed form 9325 and associated return was furnished and if so, what was the result?

I think you are mistaking a comfort letter where they require the accountant to "certify" income, to a written statement from the accountant that an extension was filed for the current tax year and to provide a copy of any preliminary return if available. Mind you my client requested me to do this so that he can at least apply for the loan and get the ball rolling. I was on a conference call with the loan officer and it was made clear and I understood that they would be pulling transcripts once the return was e-filed.

I actually wrote specifically that I have not audited any P/L and can not certify income.

[WhiteOleander]

I agree with not providing comfort letters etc. But, the issue now is the mortgage comp wants to see if the return that was given to them is the actual return filed. Seems people were making up suitable tax returns for a mortgage that was no where near what was actually filed with the IRS. This is also now an issue with FAFSA. I have had to help clients get the transcript of their return for the kids school financing. It's a real hassle if there's identity theft involved.

[TAXNJ]

Affidavit

I agree with not providing comfort letters etc. But, the issue now is the mortgage comp wants to see if the return that was given to them is the actual return filed. Seems people were making up suitable tax returns for a mortgage that was no where near what was actually filed with the IRS. This is also now an issue with FAFSA. I have had to help clients get the transcript of their return for the kids school financing. It's a real hassle if there's identity theft involved.

Then have the client submit an Affidavit by their attorney so not to hold up the closing because of the time constraint the Original Poster states. Then have the mortgage company pay for it or get a new motgage company.

[Black Bart]

I have a client that needs a transcript for closing on a house as soon as possible. (We filed an extension, and sent the return in on July 2nd.) The local Kansas City offices no longer provide transcript services. For an e-file return, filed two weeks ago, the Central Transcript/tax records line states it is still unavailable. I realize they say two to three weeks out for an efile to become available but I am wondering if anyone has any short cuts, or has had any alternative "proof of filing" experiences that could help this individual. Any ideas or experiences? Thank you!

If the client owed money for taxes and paid by check you could get a copy of the check (front & back) from the bank, then print out a hard copy of the tax return to go with it. It's not rock-solid proof that he actually DID make whatever amount of money he's claiming to have raked in, but at least the payment would match the return and give your guy a fig leaf to show 'em. Like ATSMAN I've sent banks a copy of the extension if they had NOT filed and that was okay with them.

I suppose the mortgage companies are a little tickier about it, but since the computer hack took transcripts offline recently, you're stuck with "by mail" service which will probably take a month (I'm guessing IRS' 5-6 days turnaround time is extremely optimistic). Sometimes the mortgage companies will just take a "Taxpayer's Copy" customer copy (put it in your professional {JACK'S TAX} envelope/folder. Don't forget the disclosure authorization. Tell them the electronic transcript service is down and, to prove it, show them how to pull the below link up on their computer). Maybe they'll take pity and your hard copy.

http://www.irs.gov/Individuals/Get-Transcript and

[TAXNJ]

To certify

I think you are mistaking a comfort letter where they require the accountant to "certify" income, to a written statement from the accountant that an extension was filed for the current tax year and to provide a copy of any preliminary return if available. Mind you my client requested me to do this so that he can at least apply for the loan and get the ball rolling. I was on a conference call with the loan officer and it was made clear and I understood that they would be pulling transcripts once the return was e-filed.

I actually wrote specifically that I have not audited any P/L and can not certify income.

As you know, Certified Financial Statements do not have a "comfort letter". Many times Certified Financial Statements are too costly for some clients. Our practice policy, based on our contract, is to deal with the client and/or client's attorney about client's information and to provide that information directly to them and not serve as a "conduit". Once the client information is provided to them, it is up to them as to what they do with it. It's part of our "safe" practices, especially in today's environment compared to years ago. It is not a "tough" or not "client satisfaction" issue but a realistic one to protect the client and our firm.

Also, this is partially based on past history with some Mortgage Brokers who wanted "comfort letters" stating that the client's 5 year forecast will happen, what they want the "comfort letters" to state, that the client will not go out of business in the next 10 years, that their personal income and expenses will not change, etc. It was a waste of time and effort and in some cases, when calling the broker rep back, they had left the company.

Based on legal counsel, that is our policy and works well and the clients' requests are fulfilled. Other businesses' practices may do it differently is not an issue, because it does not affect our practice

If there is an "after the fact" where someone then "changes" or falsifies their information and presents it with their attorney present, think it would then be an issue with the person and their attorney to work out.

[Black Bart]

Regarding Client Satisfaction

Our practice policy, based on our contract, is to deal with the client and/or client's attorney about client's information and to provide that information directly to them and not serve as a "conduit". Once the client information is provided to them, it is up to them as to what they do with it. It's part of our "safe" practices, especially in today's environment compared to years ago. It is not a "tough" or not "client satisfaction" issue but a realistic one to protect the client and our firm.

Although I agree with you that the above business-like policy is the best and safest for us, I think it's brushing aside perhaps a very important aspect of our practice: customer satisfaction. I can't speak for your business, but I think many here would agree that steady good-paying customers are hard to come by and are easily offended by a "take it or leave it" response to their requests. To some of them, the "It's our company policy" explanation is simply another way of saying you won't/can't help. Most clients will only need this once during the years you're doing their taxes. Several that I've handled present with this short request: "XYZ Title Co. wants such-and-such. I need you to get it so my loan can be processed." If I say "That's between you and them", then I may lose that, say, $1,000 per year fee because he doesn't know/care what's technically involved -- all he knows is that the mortgage company told him to get a piece of paper from you and you won't do it.

My position is the same as WhiteOleander's (below), but

I agree with not providing comfort letters etc. But, the issue now is the mortgage comp wants to see if the return that was given to them is the actual return filed. Seems people were making up suitable tax returns for a mortgage that was no where near what was actually filed with the IRS. This is also now an issue with FAFSA. I have had to help clients get the transcript of their return for the kids school financing. It's a real hassle if there's identity theft involved.

Then have the client submit an Affidavit by their attorney so not to hold up the closing because of the time constraint the Original Poster states. Then have the mortgage company pay for it or get a new motgage company.

I feel your suggestions to him are unrealistic. The above actions aren't just done at the snap of a finger. By this time the customer has spent lots of time and trouble dealing with the title company and doesn't want to go through that again (and maybe he likes this particular outfit). But now you're telling him to go get an affidavit from a lawyer, and then if his company won't pay for it, to start the whole process all over again with another company.

I think many clients would simply go to someone else for help.

[TAXNJ]

Greatest country

[QUOTE=Black Bart;174735]Although I agree with you that the above business-like policy is the best and safest for us, I think it's brushing aside perhaps a very important aspect of our practice: customer satisfaction. I can't speak for your business, but I think many here would agree that steady good-paying customers are hard to come by and are easily offended by a "take it or leave it" response to their requests. To some of them, the "It's our company policy" explanation is simply another way of saying you won't/can't help. Most clients will only need this once during the years you're doing their taxes. Several that I've handled present with this short request: "XYZ Title Co. wants such-and-such. I need you to get it so my loan can be processed." If I say "That's between you and them", then I may lose that, say, $1,000 per year fee because he doesn't know/care what's technically involved -- all he knows is that the mortgage company told him to get a piece of paper from you and you won't do it.

My position is the same as WhiteOleander's (below), but

likes[/I] this particular outfit). But now you're telling him to go get an affidavit from a lawyer, and then if his company won't pay for it, to start the whole process all over again with another company.

I think many clients would simply go to someone else for help.

You have some good comments and/or recommendations for another type of business practice.

If you noted that in one of the reply posts, to get a on-line Transcript is next to impossible and getting via US mail will take sometime. That's the reason for an alternative - Affidavit as mentioned if the mortgage company is skeptical.

"Good judgment comes from experience and a lot of that comes from bad judgment" " When ignorance gets started it knows no bounds" quote Will Rogers.

As far as customer satisfaction, as you probably do, we work very closely with our clients, from preparation, planning, representation, etc. Therefore, we are able to help our customer base very well whether with or without time constraints. It's called a "time line and/or schedule" that gives the client what they pay us to do in the best professional way. If the client is under undue pressure, first try to get them to relax to make better decisions After all, the one mortgage company is not the only one looking for business. Same as with your firm and my firm, it's a great country where clients make their choice who they want to work with.

Now, if it is an "off the street" client that wants something yesterday, yes, if we can not help them, then would send them elsewhere or if the practice was just starting out as years ago, then would consider the client for the experience. Based on our past experiences, we found it is the proper way, though your way maybe different and not to fault you on that type of practice if you do. Just different types of practices which is important for clients.

As you and others may have experience with some mortgage brokers (not all) the unreal requirements mentioned in another reply post that drives the client to lose weight - after all where is your mention of the mortgage company "customer satisfaction", placing undue time demands on clients? You may or may not take this wrong, but are you a "mortgage broker"?

Healthy discussion of various types of practices and as always with your posts find them to be informative. Best of luck to you and enjoy the summer.

[Burke]

I have a client that needs a transcript for closing on a house as soon as possible. (We filed an extension, and sent the return in on July 2nd.) The local Kansas City offices no longer provide transcript services. For an e-file return, filed two weeks ago, the Central Transcript/tax records line states it is still unavailable. I realize they say two to three weeks out for an efile to become available but I am wondering if anyone has any short cuts, or has had any alternative "proof of filing" experiences that could help this individual. Any ideas or experiences? Thank you!

My understanding is that the IRS took the transcript system off-line due to identity theft/fraud issues. Did they ever put it back into service?