Document Updates: Testing 4506-C IVES Request for Transcript of Tax Return (Copy of Tax Form, Cx3095)

A “Featured News” email sent by FNMA included the following:

“In: 4506-C . . . Out: 4506-T

Effective March 1, 2021, only the new IRS Form 4506-C will be accepted through the Income Verification Express Service (IVES) to provide tax transcripts to third parties. This means mortgage lenders will need to have borrowers sign Form 4506-C to give permission for obtaining their tax transcripts. The December Selling Guide update will include changes to align with this requirement.”

In anticipation of this upcoming change, the ability to test IRS Form 4506-C content has been added to document Cx3095 on the ConformX Stage servers.  Temporary field “Print IRS Form 4506-C Content Indicator” (Field 143002) has been created to allow Form 4506-C to print in place of Form 4506-T on Cx3095 during testing and transition.

Other than the new temporary indicator, the same data fields and settings will be used for both forms.  While the main content of the documents is very similar, notable differences between the March 2019 version of 4506-T and the new 4506-C include:

• Relabeling of item 5 from “If the transcript or tax information is to be mailed to a third party (such as a mortgage company), enter the third party’s name, address, and telephone number.” to “IVES participant name, address, and SOR mailbox ID”.  While the label has changed, the existing data points will continue to be used in this area for consistency.
• Removal of item 7 “Verification of Nonfiling” and renumbering of subsequent items.
• Addition of “Print/Type name” in the signature area.
• Removal of numbering at the top of page 2. Pagination has been removed from the footer of the 4506-C version of Cx3095.
• Updated instructions page.

Future 4506-C updates of standard forms will include:

• Updating 4506-T Corporation Tax Return (Cx17841) to support 4506-C.
• Updating reference in the C-6 Incomplete Application version of “Statement of Credit Denial, Termination or Change” (Cx15858) to “Executed 4506-C Request for Tax Transcripts” when applicable.

If you wish to have a standard value field mapping added to set “Print IRS Form 4506-C Content Indicator” to “Yes” on ConformX Stage for testing, please contact your Client Relationship Manager directly or contact our Client Support Team at 1-800-497-3584 for assistance.  The Client Relationship team will also work with clients to update non-standard copies of IRS Form 4506-T as well as client forms that reference 4506-T.

The ability to print Form 4506-C for Cx3095 is available now on ConformX Stage servers. Triggering of the new document content on Production, as well as the edits to Cx17841 and Cx15858, is planned to take place by January 1, 2021.  Questions or concerns about these changes may be directed towards Client Support at 1.800.497.3584.

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