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Notary Signing Agents Now Seeing Revised IRS Document In Loan Packages

Signing Agent new IRS form changes

Notary Signing Agents need to be aware of revisions to IRS Form 4506-T, a tax-related document that’s commonly included in loan packages. The form requires NSAs to take additional steps to ensure loan packages are properly completed — and not rejected.

What Is A Form 4506-T?
 

The Form 4506-T, “Request for Transcript of Tax Return”, authorizes a third party, such as a lender, to obtain transcripts of an individual’s tax return information. This information is used in the underwriting process by the lender to validate a borrower’s income information and approve the loan. The form is also used in the event the loan file needs to be reviewed for quality control later.

What Has Changed On The Form 4506-T?
 

The IRS has added an additional statement just above the signature line confirming the signer is the taxpayer authorizing the request for tax transcripts or the taxypayer’s authorized representative. The statement reads, “Signatory attests that he/she has read the attestation clause and upon so reading declares that he/she has the authority to sign the Form 4506-T”. The signer must confirm agreement by checking the box next to the statement in order to complete the document.

Revised Form 4506-T change

How Does This Affect Signing Agents?

 

If the box on the Form 4506-T is not checked,the IRS will not accept the form. Notary Signing Agents need to make sure the borrower has signed the form and checked the boxed statement.  Some loan packages may contain more than one Form 4506-T; in these cases the signer must sign and check the boxed statement on each form.

Effective since March 2016, the IRS no longer accepts older versions of the Form 4506-T. Any requests submitted to the IRS using the old form lacking the additional signer statement will be rejected.

David Thun is an Associate Editor at the National Notary Association.

Related Articles:

Signing Agents Discuss Life With The New Closing Disclosure

Notary Signing Agent Tip: Dealing With Post-Dated Loan Packages

Test Yourself: How Secure Are Your Notary Data Handling Practices?

Additional Resources:

Signing Agent Resources

 

 

4 Comments

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Katrina

02 May 2016

What exactly is the attestation clause? Is it the paragraph above the signature line and agreement statement?

National Notary Association

03 May 2016

Hello. Yes, that's correct.

susan cochran

03 May 2016

not sure why I cannot view this document??

National Notary Association

03 May 2016

Hi Susan. If you are having trouble viewing a Bulletin article, please contact us at social@nationalnotary.org and we will try to help you resolve the issue.

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