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In short, lenders use tax transcripts to confirm that the tax and income documents you submitted to the lender are the same documents that you submitted to the IRS. This enables the lender to verify your past income while also helping them reduce mortgage fraud.
T simply allows your lender to verify with the IRS that the forms you supply to prove your income match those in the possession of the IRS.
When do you need Form 2848? Not just anyone can be granted power of attorney with the IRS. While you can authorize immediate family members to act on your behalf, this form is most often used to authorize a tax professional to deal with the IRS for you.
The main difference between the two forms is that IRS Form 4506T-EZ is only used to request a transcript of your Form 1040 individual tax return. A 4506-T form can be used to request transcripts of a Form 1040 individual tax return, or transcripts from Forms W-2, 1098, 1099 and 5498.
Use Form 4506-T to request tax return information. Taxpayers using a tax year beginning in one calendar year and ending in the following year (fiscal tax year) must file Form 4506-T to request a return transcript.
Use Form 2848 to authorize an individual to represent you before the IRS. The individual you authorize must be a person eligible to practice before the IRS.
The fax and mail options for submitting Forms 2848 and 8821 are still available, however signatures on such forms must be handwritten. Using the online option will not accelerate the time necessary for the IRS to process the authorizations, which is currently estimated to be five weeks.
An SS4 letter is the official form number that the IRS has given for the Application for Employer Identification Number form. This IRS form plays a very crucial role in your business. The SS4 notice is required to file a requirement for filing income tax returns, file business loan applications, and get your EIN.
IRS Form 2848 authorizes individuals or organizations to represent a taxpayer when appearing before the IRS. Authorized representatives, include attorneys, CPAs, and enrolled agents. Signing Form 2848 and authorizing someone to represent you does not relieve a taxpayer of any tax liability.
The IRS Form 4506 is used to retrieve photo copies of the tax returns that were filed by the taxpayer. 4506 can take the IRS up to 60 days to complete.