The Internal Revenue Service (IRS) has lengthened the acceptable 4506-T signature date from a 60-day window to 120 days, according to NCS Inc.
The IRS forms 4506-T and 4506T-EZ are both used to retrieve income and Taxpayer Identification Number verification from the IRS, most often in connection with a transaction through a benefit provider, such as a mortgage lender.
This change in IRS policy is in response to what NCS calls the ‘problematic and limited’ 60-day window the IRS provided lenders to use a 4506-T or 4506T-EZ to verify taxpayer income. Oftentimes, lenders required the consumer to sign and date the forms multiple times, usually at origination, closing and, in a growing trend, during servicing, the company explains.
"This procedure change will lessen the paperwork the IRS, borrowers and lenders are required to handle and process," says NCS Senior Vice President of Government/Industry and former IRS Senior Manager Cecil Bowman.