By Simon Volkov
The 4506 tax form is used when taxpayers require copies of previously filed tax returns. This form can also be submitted by third parties to obtain tax record transcripts on behalf of clients or the deceased. Third parties can include mortgage lenders, banks and credit unions, tax attorneys, certified public accountants, and probate estate administrators.
Third parties submitting 4506 tax form requests are required to adhere to IRS guidelines set forth in section 6103(e). This Internal Revenue Code encompasses tax confidentiality laws and provides regulations for obtaining tax records of dissolved corporate entities.
Authorized agents and individual taxpayers can use IRS tax form 4506 to request a variety of previously filed returns including 706, 941, 1120 and 1040. Taxpayers can also use this form to request copies of attachments included with each year’s return. Common attachments include W-2s, 1099s, tax amendments, and itemized deduction schedules.
Taxpayers must present individual IRS 4506 forms for each required tax return. For example, if taxpayers filed returns for 2007, 2008, and 2009, they must present an individual form for each year.
At present, the IRS assesses a fee of $57 per return request. Accepted forms of payment include personal checks, business checks, and personal money orders. Financial instruments must be payable to ‘United States Treasury’ and include the taxpayer’s social security number or employer identification number.
The Internal Revenue Service requires taxpayers to include ‘form 4506 request’ within the memo section of the money order or check, along with a letter that includes the year of each requested return.
Taxpayers can obtain tax transcripts at no charge. Transcripts include summarized statements of taxpayers’ gross income, adjusted gross income, taxes owed for each year, or amount of tax refunds.
Taxpayers can select one of two options when requesting tax transcripts. Taxpayers can either call the IRS Service Center or submit form 4506-T via mail. Tax summaries offer an efficient way to request required tax returns which typically arrive within 10 business days. Tax summaries usually meet requirements of student loan providers and mortgage lenders.
Taxpayers are limited to a maximum of four tax return transcripts which can include the current year and previous three years of filed returns. When taxpayers require more than 4 years of transcripts they must provide the IRS with form 4506 and pay the $57 fee for each requested return.
Individual taxpayers, sole proprietors, business partnerships, and corporations that file for bankruptcy must provide income tax return transcripts to the court. In 2005, new bankruptcy laws were enacted which require debtors to present copies of current, amended, and past due tax returns before bankruptcy confirmation can occur.
The Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) stipulate debtors present personal and business tax returns through the court no less than 7 days prior to their 341 creditor meeting.
Individuals who are considering obtaining bankruptcy protection should request tax returns a minimum of 90 days prior to needing them. The Internal Revenue Service is notorious for moving slow. Don’t place the opportunity for debt relief at risk by not having necessary tax records. Taxpayers can download 4506 tax form and 4506-T transcript requests at IRS.gov.
About the Author: The 4506 tax form is a helpful tool for individuals entering into mortgage loans or obtaining bankruptcy protection. It is also essential for estate administrators settling probate estates. Learn more about its uses from California real estate investor, Simon Volkov by visiting SimonVolkov.com.
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