Additionally, W2s, 1099s and K1s will be added to the program within thirty to sixty days. Along with improved turnaround times and an enhanced product, the IRS will impose a user fee of $4.50 per year requested in the new program to recover its costs of program maintenance. All parties will closely monitor procedures to ensure no surplus fees are collected, and that the entire process maintains a high level of confidentiality and security.
Income verification is a tool used by mortgage lenders and others within the financial community to confirm the income of a borrower at the beginning of the loan application process in an efficient and cost effective manner. Verifying income via tax transcripts provided by the IRS can detect potential fraud and reduce the risk of repurchase demands. According to Pete Rose, representative of the Coalition, "Expedited processing of 4506Ts enables a faster third-party income verification process to verify a borrower's income at the pre-funding stage."
