Address Reject –
- The most common address reject from the IRS is because the address on the 4506-C form does not match exactly with the filed taxes. If you are requesting multiple years make sure you fill in any previous addresses on line 4 of the 4506-C. If you have confirmed the address is an exact match to the document you are verifying (full 1040 or W2 transcripts) then the borrower must call the IRS directly at 800-829-6374 to verify the address they have on file.
RAIVS – Verification of Non Filing – does not go through CORELOGIC
- If a borrower has never filed taxes or has not filed in 5+ years, the IRS will have no record of this borrower at all. In turn, any address that you use on the 4506-C form will not be sufficient enough to obtain these transcripts as the IRS does not have an address on file for this individual.
- Below is an option for obtaining a “No Record of Return on File” for a passive income earning This does NOT go through CoreLogic.
- The RAIVS request can take up to 14 days for completion and the response will be mailed to the contact listed in Section 5 of the 4506-C If the borrower has never filed, this is the only way to retrieve results.
- Here are the requirements in the form/processing:
- In Section 5 of the 4506-C form, list your company name and address. You can include your fax #, and write ‘please fax results’ to the side of Section 5. The RAIVS processor is not obligated to fax them to you, as they will typically be mailed, but hopefully they will. Sometimes the results are also mailed to the borrower.
- Use the 4506-C form with Box 7 checked
- List the year(s) in Section 9
- Fax the request to 559.456.7225 or 26 or 27
- They will provide a ‘No Record of Return on File’ transcript if they confirm non- filing
***Please note in the LO NOTES section that you have confirmed that the RAIVS results have been requested and we will move this condition to a post-funding condition***
No Record of Return Filed -
- For borrowers who have filed based on IRS deadlines but transcripts are not yet available (this is applicable for 6 weeks following filing deadlines) the following is acceptable.
- Borrower provided copy of the filed return along with proof of filing, proof of refund (can use IRS where’s my refund online or direct deposit/copy of check) or proof of payment for taxes owed.
- For extended returns we must have proof of extension along with proof of estimated taxes owed have been paid or proof that a refund is expected commensurate with income/expenses disclosed in prior years. Payment plans to the IRS are not available on extended taxes.
Code 10 – IRS Reject. Due to Limitations, the IRS cannot process the request, taxpayer will receive a mailed notice. If any questions, please call the IRS Customer Service at 800-829-1040.
- The rejection code 10 is an indication of possible identity theft or fraud.
- When a code 10 rejection comes back from the IRS they will not give specific details to any third party.
- The taxpayer will receive a letter and a copy of the 4506-C in the mail.
- The taxpayer will need to contact the IRS Identity Protection Security Unit directly at 800-908-4490 or go to a local field office to obtain a copy of their tax transcript and record of account.
- Due to budget cuts at the IRS, there may be delays in reaching a representative via phone and delays in returning the requested transcript via fax.
- Once a taxpayer’s account has been flagged with a code 10, that flag may stay on indefinitely.