A tax firm workflow for Form 4506-C and IVES income verification requests

This page is general information, not legal advice. The Income Verification Express Service page, Form 4506-C PDF, About Form 4506, and the IRS transcript types page are the texts to read. This page does not invent fees, participant lists, or delivery times.

The IRS Income Verification Express Service lets a taxpayer authorize banks and lenders to access tax records when the taxpayer applies for a mortgage, loan, or other service. The IRS only provides tax records to a third party with the consent of the taxpayer. Taxpayers can authorize a lender through their IRS account, or through the lender with Form 4506-C, IVES Request for Transcript of Tax Return. (Income Verification Express Service)

Mortgage lending companies, including banks, credit unions, or others, participate in IVES by completing the application process. They submit transcript requests online or by fax with Form 4506-C. Your small firm is usually not the participant. You are often the person who helps the client complete a form the participant already named. (Income Verification Express Service)

Form 4506 is a different product. Use Form 4506 to request a copy of a tax return, or to designate a third party to receive that copy. A transcript is not a photocopy of the return. (About Form 4506, Transcript types and ways to order them)

Use Form 4506-C to request tax return information through an authorized IVES participant. The taxpayer designates that participant on line 5a. The transcript is sent to the third party entered on line 5a and, if completed, line 5d. Use Form 8821 when your firm needs to inspect or receive confidential tax information for work you are doing. Use Form 2848 when an eligible representative needs to speak for the taxpayer. (Form 4506-C PDF)

Do not treat a signed 4506-C as your firm's CAF authorization. Do not treat a signed 8821 as an IVES request for a lender. If a notice is the actual job, start with IRS notice response intake, then pick 8821 or 2848.

Do not sign Form 4506-C unless all applicable lines have been completed. The IRS may reject an incomplete or illegible form. The IRS must receive Form 4506-C within 120 days of the date signed by the taxpayer or it will be rejected. Line 5d (client name, telephone, and address) cannot be blank or not applicable. (Form 4506-C PDF)

• Confirm the IVES participant name, ID number, and address on line 5a against what the lender actually sent. Do not invent a participant.
• Match taxpayer name and TIN to the return you have on file, including a previous name on line 1c if the last filed return used a different name.
• Enter only one tax form number per request for line 6 transcripts (1040, 1065, 1120, and so on).
• Mark return transcript, account transcript, or record of account on line 6, or wage and income on line 7, based on what the participant asked for. If you are unsure which transcript type is needed, the form says to check with the party requesting the tax information.
• Enter years or periods on line 8 in the mm dd yyyy format the form requires.
• Get the signature or signatures the form requires. If both spouses are listed, both must sign. Check the authority box in the signature area.

Electronic signatures are only for IVES participants that opt in. Contact the participant for approval and guidance. If the form is signed electronically, the electronic signature checkbox must be marked. A representative can sign only if Form 2848 line 5a specifically delegated that authority and Form 2848 is attached. (Form 4506-C PDF)

The IVES participant faxes Form 4506-C with the approved IVES cover sheet to their assigned Service Center, or submits online. You do not control that queue. Tell the client, in writing, that the firm does not set IVES delivery time. Do not quote a turnaround you saw on a lender website. The IRS transcript types page describes timing for Get Transcript by mail and for Form 4506 copies. Those are not IVES SLAs. (Transcript types and ways to order them)

Keep a copy of the signed Form 4506-C with the engagement file. Log who submitted it (participant, client, or you sending a completed form back to the participant). Log what came back, or that you never saw the result because it went to the lender. Put the task on the same board you use for onboarding if this is a new file.

One row per client and request. Duplicate a row if years, transcript types, or participants differ.

Download the Form 4506-C versus Form 8821 table and request tracker. The tax season operator can draft the chase when a signed 4506-C is still missing. Your staff approve what goes out. Your CPA reviews and signs every return.