question about the 4605t form

svromeo00 · Joined: 30 Oct 2009 Posts: 17 4.61 Dollars($)

I am self employed and recently was recently pre approved...or I guess more so pre qualified because the only information they asked was income...pulled my credit...and asked about my employment and how long i had worked there. But my real question is about the 4506t form. I signed the form but when doing so the loan officer told me that they normally dont request for the transcripts that only if there was an audit. I am suppose to close on the 12th and i am super stressed out about it. I gave them a copy of my tax returns signed by my Cpa. But since then after talking to my cpa who has been doing my taxes for years....I found out that the wrong income was filed to the IRS. We went back over the numbers and apparently some of the invoices of money that was mad was not filed. I will have to amend my taxes regardless but i really do not want this to affect the outcome of this loan. I really do not know what to do?? My loan package was turned in this past Tuesday and I have still not heard anything. I am suppose to do the walk through on the home on thursday. If you could shed some light on this situation i would be more then greatful! Thank you!

gmakerley · Posted: Fri Oct 30, 2009 7:40 pm Post subject:

simple: wait until after your loan closes to do your amended taxes. when the bank sends in its 4506T (and they will, i pretty much promise), they are seeking transcripts for however many years you've authorized them to pull (probably 2 most recent). if the transcripts they receive coincide with the copies of the returns you gave them, then it's no sweat.

what is worrisome is if you've given them different copies than what actually went to the irs; that'll raise red flags right away. further, if you do an amendment at some point and fail to provide a copy of that (and i don't mean in the future), they'll get a transcript of your amended return and not be very happy.

as i said...just wait.

svromeo00 · Joined: 30 Oct 2009 Posts: 17 4.61 Dollars($)

Why would the Loan officer tell me that they normally do not send off for the transcripts only in case of an audit. And come to find out the wrong tax returns were sent in to the lender. I just dont know what to do now??? I will have to amend my taxes for sure. I just do not want to lose this home. Would I be able to amend them at the IRS office and have them stamp my returns showing i have done so? Sad

svromeo00 · Joined: 30 Oct 2009 Posts: 17 4.61 Dollars($)

Apparently my cpa lost a few of the invoices of contracts i had....and the returns he gave me where what i will be filling this upcoming year and not my last 2 years...So its just completely WRONG. So needless to say....know any good cpa!! Its just one big mess. Now I have to amend my taxes and also may even lose this home.

gmakerley · Posted: Sat Oct 31, 2009 4:31 pm Post subject:

here's the key: is amending your returns going to cause you to become unqualified for this loan? if so, that's a severe problem. otherwise, speak with your lender and fill them in on what's transpired so that you can quickly and easily rectify it.

as for the loan officer - the filing of the 4506-T so early came upon us out of the blue. for the longest period, it wasn't done at all, except on rare occasions; then it was only after closing for qc purposes; now, it's pretty much an upfront thing to do with many lenders.

it's a different world (every day).

svromeo00 · Joined: 30 Oct 2009 Posts: 17 4.61 Dollars($)

Well my loan package was turned in on the 27th of october..How long does it take before I will hear something as far as incorret taxes or asking for more info? I want to explain to my loan officer the problem but I am afraid by tomorrow it may be to late.

jveenstra · Posted: Mon Nov 02, 2009 9:31 am Post subject: IRS 4506

The form is good to be used for 60 days. Normally you sign the form during processing of the mortgage and again at closing.

So, the form 4506 that you sign at closing can be used by the lender for the next 60 days after closing.

As long as your mortgage is based on the tax returns that were filed, you are ok.

Send in the amended tax returns after the 6o days passes after closing.

svromeo00 · Joined: 30 Oct 2009 Posts: 17 4.61 Dollars($)

Thats the problem....the tax returns that were filed are incorrect. My cpa left out invoices I had given him . Which inturn made my income lower then what it should be. Id rather pay the extra money I owe in taxes and it be correct. My brother inlaw works for me and I beilieve my cpa filed his taxes under my name...Which is a lower income...Because when i asked for my taxes to turn into the loan officer they were what they were suppose to be but also they were not filed. My cpa called me explaining about "lost invoices"...but i now truly believe he filed his income under my name. But i have to amend my taxes now and unsure how long this will take. I am suppose to close on this house on the 12th of this month. Any idea on what i should do?

jveenstra · Posted: Mon Nov 02, 2009 2:58 pm Post subject: IRS Form

You have been approved for a mortgage.
You have given the mortgage company tax returns that have an incorrect income on them, but, you have been approved.
At least, that is the indication given above.
The IRS Form 4506 will verify the tax returns as they are now. While incorrect, you have qualified at whatever income is on them.
You plan to amend the tax return to a HIGHER income. If you qualify at the lower income, you also qualify at the higher income. If your tax returns are amended to a higher income, you have no concern or problem whatsoever.
If you are not qualified at and have not been qualified at the income on your present tax return, you may have a problem.
You are closing soon, has the lender already qualified you at the present income on the present tax returns as filed?? If yes, you are fine

Posted: Mon Nov 02, 2009 5:41 pm Post subject:

no i will not qualify with the tax returns filed through the irs....which those being the WRONG tax returns is where I am at a loss on what to do. The tax returns that were given to the lender are the tax returns that were SUPPOSE to be filed but were not. So I have to amend regardless of the outcome of the home...I just really hate to lose this home over a mistake my cpa did. I was wondering if i could go to the local irs office and have them amended there and also have them stamped. Would that work? The lender I am going through is Wells fargo. A buddy of mine used to work there and said they do not execute every 4506 t. He said to just clear it all up after right after closing....Any advice would be AWESOME!!

gmakerley · Posted: Mon Nov 02, 2009 7:55 pm Post subject:

you need to determine what the correct tax figure will do to your approval. if you're still approved, then belly up to the bar and let the underwriter review the right numbers now instead of causing you greater consternation later. i don't see any good coming from sitting on your existing returns and fixing things later. you could be accused of fraud in your application, and i know i wouldn't want to try to fight that battle.

as for the guy who "used to work" at wells fargo - go back and see what i said before. 4506-T is much more commonly executed "more recently" - i suggested you need to count on it. if you'd rather run that risk, go ahead.

i stick to my advice - fix the returns and tell them right now about what has transpired.

Guest

I amended my taxes because I forgot to add a 1099 to the total. So my income went up. But I just filed them, and sent them in with a check for the difference. I am closing in 2 months. Will they be on my transcripts from the 4506-T or will I be screwed. I gave the mortgage company a copy of my amended tax return. Just curious if that could cause a problem at closing. Please someone answer soon!

Guest

The 4506t form is actually a pretty common procedure when we are doing loans for someone who is self employed. There are a lot of different deductions for someone who has there own business compared to a W2 borrower. Don't become alarmed. The bank just wants to make sure all of the income info. is true and corect. Remember, one of the reasons we are in this financial debacle is due to fraudulent income info. The reigns have been tightened. And for good reason.

fredlennartz · Joined: 09 Jun 2010 Posts: 5 2.04 Dollars($)

I hear that but, what worries me is that because I just sent in the amended taxes, they won't show up on the 4506 t transcripts because they just got there two weeks ago, and I close on the 15 of August. Could that cause a problem?

smithsussane · Posted: Thu Jun 10, 2010 11:23 pm Post subject:

Hi fredlennartz!

Welcome to forums!

Your query has been replied to in the given page:
http://www.mortgagefit.com/budgeting-finance/getloan-taxreturn.html

Take a look at it. Hope it helps you.

Sussane

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