Will IRS Furlough Days Impact Mortgages?
Here is a thought: will the IRS furlough days impact 4506 Transcript proscessing? When mortgage borrowers sign their disclosures, they acknowledge the lender's intention to verify tax returns with the IRS by signing a form 4506-T, which allows the lender to retrieve a tax transcript fromt the Internal Revenue Service. Lender's use the 4506-T tax transcript to compare the borrower's w-2s to his or her reported income.
The first 5 furlough days for 2013 are currently scheduled to take place on May 24, June 14, July 5, July 22 and August 30. This means all services are shut down as if it were a federal holiday. All public-facing IRS operations will be closed, including the toll free operations and Taxpayer Assistance Centers.
The IRS will not accept and they will not return any 4506-T orders on these days. Equifax, however, will continue to prepare all recieved requests for future submission. Delays with 4506 transcript turn arounds should be expected.