What is the IRS form number a lender uses to obtain a copy of a borrower's tax transcript?

The IRS form used by lenders to obtain a copy of a borrower's tax transcript is the 4506T, also known as the Request for Transcript of Tax Return. This form allows lenders to request a summary of the borrower's tax return information directly from the IRS, which is particularly important for verifying income when processing mortgage applications.

The 4506T form is specifically designed to request tax return transcripts and other information, making it the appropriate choice for lenders needing to confirm a borrower's financial standing. It provides a quick and efficient way to access essential tax data, which in turn helps to ensure that the loans are underwritten accurately based on the borrower's actual income.

In contrast, the other forms mentioned serve different purposes. The 4506 form is used to request a complete copy of tax returns, including all attachments, rather than just the transcript. The 1040 is the individual income tax return form that taxpayers file, detailing their income and deductions. The W-2 form is a wage and tax statement provided by employers, reporting the amount withheld from an employee's salary for income taxes.

Using the 4506T is a crucial part of the underwriting process, as it helps provide lenders with reliable information needed to assess an applicant's eligibility