Michael Lampert Esq., the tax attorney who is Of Counsel to my law office has alerted me that on October 21, 2009 the IRS issued a new form, 4506T-EZ, entitled "Short Form Request for Individual Tax Return Transcript".  This new form will make it easier for homeowners trying to short sale, modify, refinance or finance their mortgages to obtain their tax return transcripts.

            A transcript is a computer print out that includes most line items on the original return.  Many lenders accept the transcript as a substitute for a copy of the original tax return for income and other verification purposes.

            Many of you that do short sales or loan modifications are familiar with the old 4506T form usually requested by lenders as part of the request documentation. This new form is a simplified ("EZ") form of the 4506T, Request for Transcript of Tax Return.  It is only for obtaining copies of 1040 series (including 1040A and 1040EZ) individual income tax returns.  It can be filled out online, printed, and then submitted by fax or mail.  Upon the taxpayer's request, the transcript can be sent directly to a third party, such as a lender.  It is expected that a request will take 10 days to process.

            As a reminder, taxpayers still should keep copies of their original return in a safe place.  Copies of the actual tax return can be obtained by filing form 4506, Request for Copy of the Return, usually at a cost of $57 per return and a two month time frame.

            Taxpayers also should be careful to fill out all parts of the form, including the years requested and who is to receive the information.  Remember that once the IRS sends the information to a third party, such as a lender, the IRS has no control over what a third party does with the information.

Copyright 2009 Richard P. Zaretsky, Esq.

Be sure to contact your own attorney for your state laws, and always consult your own attorney on any legal decision you need to make.  This article is for information purposes and is not specific advice to any one reader.

Richard Zaretsky, Esq., RICHARD P. ZARETSKY P.A. ATTORNEYS AT LAW, 1655 PALM BEACH LAKES BLVD, SUITE 900, WEST PALM BEACH, FLORIDA 33401, PHONE 561 689 6660  RPZ99@Florida-Counsel.com - FLORIDA BAR BOARD CERTIFIED IN REAL ESTATE LAW - We assist Brokers and Sellers with Short Sales and Modifications and Consult with Brokers and Sellers Nationwide!  Shortsales@Florida-Counsel.com  New Website www.Florida-Counsel.com. 

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