Transcripts

[Burke]

The client's son needs to submit the transcript to his school for financial aid application.

Just in case the transcript does not include the amended tax return changes and the Obamacare Form 8962 information, is there a standard procedure to handle the situation? Should the son submit the transcript with a copy of the amended tax return and the additional Form 8962?

So what are the consequences of the amended return? Is it an increase or decrease in income which will affect Financial Aid? In the OP from Openfire, his client needed it for a closing. In that case, I would not worry about the amended return. The loan has probably been approved by now. One of my clients just bought a house in the middle of all this transcript-off-line mess, and it did not affect the process at all. Whether the bank actually ever got one, I don't know, but I don't see how they had time to get it. Loan closed 6/25 and was only pending about 3 weeks. We provided last 2 yrs tax returns at the local level.

[Burke]

The client's son needs to submit the transcript to his school for financial aid application.

Just in case the transcript does not include the amended tax return changes and the Obamacare Form 8962 information, is there a standard procedure to handle the situation? Should the son submit the transcript with a copy of the amended tax return and the additional Form 8962?

So what are the consequences of the amended return? Is it an increase or decrease in income which will affect Financial Aid?

[Snaggletooth]

Paper return

Most banks that I have had any dealing with will pull the transcript of the returns filed. What most of them want for unfiled or extended returns is some "assurance" from an accountant that it is in the works. They just don't believe the borrower when they claim a return is on extension. Some have demanded the so called comfort letters, "certifying" income and that is someting most of us can't comply with. Whenever I prepare a statement for a bank I clearly mention the scope of my engagement so that there is NO confusion.

Understand this, ATSMAN. In fact, I had two such requests to send a copy of a return to a lender, where the client was on extension and thus there WAS no return prepared at that point.

I responded by giving the client a choice:
a) immediate closure by finalizing the return and EF prior to sending to the bank
b) preparing the return, printing a paper return and sending to the client, so the client
could forward to whomever he wanted.
c) not responding at all.

In both cases, the clients had extended because they didn't have the money to pay by April 15. They chose a paper return. This option takes me OUT of the hook and allows the client to do whatever he wants.

[TAXNJ]

Nope

As usual, I think I am missing some great eternal truth somewhere, and suggest we reverse this tape back to the beginning.

The bank creates all these hoops for borrowers to jump through just to get a loan. I will grant that most of these are to safeguard their position in loans and understand that.

In recent years the bank is requiring new and untraditional documentations and sworn statements. This is the first I've heard of an independent transcript of a tax return. Only the IRS can produce this. The client has a copy of the tax return - that's not authentic enough to make the bank happy. The preparer can generate a copy of the tax return - that's not good enough either. It follows that anything furnished by the client OR the preparer is not good enough.

So why does the bank not query the IRS and secure the documentation from the only independent source? Of course, this is a lot of trouble for them, but THEY are the party that refuses to accept anything less than an independent document.

What have I missed? I like to be as service-minded as Black Bart but Charlie Brown, this is just not our dog...

Nope. Not missing anything. Might be some loan companies "client satisfication" philosophy.

If the other party you are going to do business with does not trust you should you trust them?

[RightOn]

I don't know. Last time I talked to the Practitioner Priority Line the agent told me I could not get a transcript of a current year tax return. So, even though it doesn't help you, thanks much for the indirect tip. Hopefully, somebody else here will know.

Thank you.

The client's son needs to submit the transcript to his school for financial aid application.

Just in case the transcript does not include the amended tax return changes and the Obamacare Form 8962 information, is there a standard procedure to handle the situation? Should the son submit the transcript with a copy of the amended tax return and the additional Form 8962?

[ATSMAN]

As usual, I think I am missing some great eternal truth somewhere, and suggest we reverse this tape back to the beginning.

The bank creates all these hoops for borrowers to jump through just to get a loan. I will grant that most of these are to safeguard their position in loans and understand that.

In recent years the bank is requiring new and untraditional documentations and sworn statements. This is the first I've heard of an independent transcript of a tax return. Only the IRS can produce this. The client has a copy of the tax return - that's not authentic enough to make the bank happy. The preparer can generate a copy of the tax return - that's not good enough either. It follows that anything furnished by the client OR the preparer is not good enough.

So why does the bank not query the IRS and secure the documentation from the only independent source? Of course, this is a lot of trouble for them, but THEY are the party that refuses to accept anything less than an independent document.

What have I missed? I like to be as service-minded as Black Bart but Charlie Brown, this is just not our dog...

Most banks that I have had any dealing with will pull the transcript of the returns filed. What most of them want for unfiled or extended returns is some "assurance" from an accountant that it is in the works. They just don't believe the borrower when they claim a return is on extension. Some have demanded the so called comfort letters, "certifying" income and that is someting most of us can't comply with. Whenever I prepare a statement for a bank I clearly mention the scope of my engagement so that there is NO confusion.

[Snaggletooth]

What am I missing??

As usual, I think I am missing some great eternal truth somewhere, and suggest we reverse this tape back to the beginning.

The bank creates all these hoops for borrowers to jump through just to get a loan. I will grant that most of these are to safeguard their position in loans and understand that.

In recent years the bank is requiring new and untraditional documentations and sworn statements. This is the first I've heard of an independent transcript of a tax return. Only the IRS can produce this. The client has a copy of the tax return - that's not authentic enough to make the bank happy. The preparer can generate a copy of the tax return - that's not good enough either. It follows that anything furnished by the client OR the preparer is not good enough.

So why does the bank not query the IRS and secure the documentation from the only independent source? Of course, this is a lot of trouble for them, but THEY are the party that refuses to accept anything less than an independent document.

What have I missed? I like to be as service-minded as Black Bart but Charlie Brown, this is just not our dog...

[Black Bart]

Good question, but

I have a related question.

The 2014 tax return of a client has been e-filed and accepted in April.

The tax return was amended in May because he has claimed his son in the tax return while he was not supposed to do so this year.

And then the client received a letter and found out he had forgotten to report the Form 1095-A Obamacare tax form. So a Form 8962 (Premuim Tax Credit PTC) was submitted in June. His tax liability has increased due to decrease in the premium credit based on the Form 8962.

He tried to get a 2014 tax return transcript about 2 weeks ago. At that time, it said the transcript was not ready. He tried again last week and found out it was ready. The transcript is being sent to him by mail.

So will this transcript include the changes made by the amended tax return that was submitted in May and the Form 8962 that was submitted in June?

I don't know. Last time I talked to the Practitioner Priority Line the agent told me I could not get a transcript of a current year tax return. So, even though it doesn't help you, thanks much for the indirect tip. Hopefully, somebody else here will know.

[Black Bart]

How can I argue with such a gracious and well-mannered reply? Thanx and the same to you and yours as well.

P.S. As a kid I once vacationed in your home state and ordered an "ahscream" cone (that's an ice cream cone to Yankees). The puzzled clerk replied "Say what?" I repeated it. He then motioned to his fellow employees both left and right to come over and said to me: "Talk for them!" Both groups got a big laugh out of it .

Glad to hear you went to a NY Yankees game. You must have been fun to watch at the Arkansas spelling bees when you were younger with your spelling of " Ahscream". Did you win?

Client who visited Arkansas said they went to play the state lottery. Here's how it went.

Client to clerk: how does the payout work for the $3,000,000 Arkansas State Lottery?
Clerk: The winner gets $3 a year for a million years.

Again, have a good summer and enjoy that ahscream



Hmm, well, see, my last post was also meant to be humorous (as well as cordial). Apparently I failed; having underestimated the degree to which political correctness and "sensitivity" have tainted the back and forth of conversation. So I agree, this should be the "Last one on this issue" (or any other) before it sinks to the level of ad hominem so common on many websites.

[TAXNJ]

Last one on this issue

Ha, ha . No, I'm not a mortgage broker but you make a very good point - it works two ways, doesn't it?

How can I argue with such a gracious and well-mannered reply? Thanx and the same to you and yours as well.

P.S. As a kid I once vacationed in your home state and ordered an "ahscream" cone (that's an ice cream cone to Yankees). The puzzled clerk replied "Say what?" I repeated it. He then motioned to his fellow employees both left and right to come over and said to me: "Talk for them!" Both groups got a big laugh out of it .

Glad to hear you went to a NY Yankees game. You must have been fun to watch at the Arkansas spelling bees when you were younger with your spelling of " Ahscream". Did you win?

Client who visited Arkansas said they went to play the state lottery. Here's how it went.

Client to clerk: how does the payout work for the $3,000,000 Arkansas State Lottery?
Clerk: The winner gets $3 a year for a million years.

Again, have a good summer and enjoy that ahscream😂

[Black Bart]

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"?

Ha, ha . No, I'm not a mortgage broker but you make a very good point - it works two ways, doesn't it?

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.

How can I argue with such a gracious and well-mannered reply? Thanx and the same to you and yours as well.

P.S. As a kid I once vacationed in your home state and ordered an "ahscream" cone (that's an ice cream cone to Yankees). The puzzled clerk replied "Say what?" I repeated it. He then motioned to his fellow employees both left and right to come over and said to me: "Talk for them!" Both groups got a big laugh out of it .

[RightOn]

I have a related question.

The 2014 tax return of a client has been e-filed and accepted in April.

The tax return was amended in May because he has claimed his son in the tax return while he was not supposed to do so this year.

And then the client received a letter and found out he had forgotten to report the Form 1095-A Obamacare tax form. So a Form 8962 (Premuim Tax Credit PTC) was submitted in June. His tax liability has increased due to decrease in the premium credit based on the Form 8962.

He tried to get a 2014 tax return transcript about 2 weeks ago. At that time, it said the transcript was not ready. He tried again last week and found out it was ready. The transcript is being sent to him by mail.

So will this transcript include the changes made by the amended tax return that was submitted in May and the Form 8962 that was submitted in June?

[TAXNJ]

Now

If mortgage company is looking for verification as to if the return copy client gave to them is the return that was actually filed, I don't see what the problem is. I'd provide them w/ a copy of the 9325 to prove filing and 8879 to provide tie-back to return as long as client gave permission. Actually, I would give full return to mortgage company if client asked me to do so, but some preparers think doing that is a major imposition.

OK. Quite a few suggestions given in all the reply posts.

Now, the grand finale is what did the Original Poster decide is what counts?

Because whether a preparer gives the form 9325 to the client to provide or as you say and others I'd provide them w/ a copy of the 9325 to prove filing and 8879 to provide tie-back to return as long as client gave permission. Actually, I would give full return to mortgage company if client asked me to do so (and guess that probably even personally deliver it to the mortgage company). It's reported that the "on-line" transcript is still down and getting by US mail would take quite a while. Maybe a call to the Commissioners office is one more option or have all the options ran out?

If you can find a way to ask the Original Poster (hopefully they did not get confused with so many suggestions) what they decided to do with so many suggestions that might help because based on the Original Post, time might be running out.

[ATSMAN]

If mortgage company is looking for verification as to if the return copy client gave to them is the return that was actually filed, I don't see what the problem is. I'd provide them w/ a copy of the 9325 to prove filing and 8879 to provide tie-back to return as long as client gave permission. Actually, I would give full return to mortgage company if client asked me to do so, but some preparers think doing that is a major imposition.

Some mortgage companies don't trust the borrowers statement that a return is on extension. They want some proof from their accountant that it indeed is true. So I agree with you. What I can't and will not do is "verify income" or provide any forecast of my client's income. I too will gladly provide a copy of the return that I prepared and filed with the proper taxpayer authorization.

[kathyc2]

If mortgage company is looking for verification as to if the return copy client gave to them is the return that was actually filed, I don't see what the problem is. I'd provide them w/ a copy of the 9325 to prove filing and 8879 to provide tie-back to return as long as client gave permission. Actually, I would give full return to mortgage company if client asked me to do so, but some preparers think doing that is a major imposition.