New transcript format is now available to protect your information from any identity theft. This original transcript incompletely masks the personally identifiable information of person listed on the tax return. Financial entries will stay entirely noticeable to aid with tax representation, tax preparation, and income verification.
The IRS has taken this step to grant better protection to taxpayer data. Due to the thefts of data outside the tax system, cybercriminals usually try to impersonate tax professional and taxpayers. The cybercriminals try to gain entry to transcript data, which will assist them in filing false tax returns or get away with extra data of other persons listed on the transcript.
From June 28, the IRS will put an end to its faxing service of many types of the transcript to both taxpayers and third parties; this includes the 1120 series, the Forms 1040 series, and the 94X series.
Tax professionals having proper authorization are now permitted to request unmasked Wage and Income Transcripts for tax preparation and e-filing purposes.
Each taxpayer may use Get Transcript Online to access a masked transcript instantly or make an order for one by mail for delivery to their address of record. Taxpayers may demand Income transcript for tax preparation and unmasked Wage. The unmasked transcript will be sent to the address of record of the taxpayer. Business transcripts can be gotten by tax practitioners through the Transcript Delivery System and are not masked.
Lenders and other users of the Forms 4506 series in obtaining transcripts for income verification should look into alternatives such as taking part in the Income Verification Express Service
The full Social Security number is no longer visible; hence, the IRS has provided an entry for a Customer File Number. It is a non-mandatory 10-digit number that can be created mostly by third-parties that permit them to match a transcript to a taxpayer. The Customer File Number field will show on the transcript when that number is inserted on Line 5 of Form 4506-T, Form 4506T-EZ and Request for Transcript of Tax Return.
It is the way it would work for a taxpayer that desires to confirm a lender’s income: The lender will assign a 10-digit number, a loan number, for instance, to the Form 4506-T. The Form 4506-T may either be signed and submitted by the taxpayer or signed by the taxpayer and get presented by the lender. The Customer’s assigned File Number assigned by the requestor on the Form 4506-T will populate on the transcript. The requestor may give any number except the Social Security number of the taxpayer. Once gotten by the requester, the transcript’s Customer File Number acts as the tracking number to be matched to the taxpayer.
It is only individual taxpayers that may use Get Transcript Online or Get Transcript by Mail. Many taxpayers make use of this service in satisfying requests for income verification. The Customer File Number is obtainable for Get Transcript users. Taxpayers can manually insert a Customer File Number assigned to them, for example, college financial office or a lender. That Customer File Number will be visible on the transcript either when it is mailed to the taxpayer or when it is downloaded.
The Transcript Delivery System is for use solely by tax professionals having correct authorization to access taxpayer transcripts. Tax Professionals that are authorized to access transcripts can enter Customer File Number of 10-digit which will automatically populate on the transcript made available through TDS. This process permits high-volume users to match the transcript to the taxpayer.
A tax professional preparing a current or previous year return for a client or a taxpayer seeking to file a present or preceding year tax return should be aware that all financial entries on all transcript types are fully evident.
A tax expert may contact the Practitioner Priority Service line if an unmasked Wage & Income transcript is essential for tax return preparation and electronic filing. An Income Transcript and unmasked Wage will fully show the name of the employer, addresses, and Employer Identification Numbers (EINs) required for tax software preparation and electronic filing. If the tax professional has correct taxpayer authorization, but it is not on file, they can fax the approval to the IRS assistor and Income transcript an unmasked Wage will be sent to the practitioner Secure Object Repository (SOR) of the practitioner.
Taxpayers or other third parties who need an unmasked transcript for tax return preparation or filing should contact the IRS, present proper authentication to verify their identities and an unmasked transcript will be mailed to the address of record of the taxpayer.
LLOYD J CAZES CPA