Request for Transcript of Tax (Classic)

Working with the eSignable 4506-C Form

Use the Request for Transcript of Tax (Classic) form to obtain authorization from borrowers to request transcripts of their tax returns (on Form 4506-C) from the Internal Revenue Service, and to verify borrower-provided tax information by ordering electronic copies of 4506-C tax reports from within Encompass.

You can also use the Request for Transcript of Tax form to request permission to order transcripts. For detailed information about the circumstance when you would use each of these input forms, refer to Request for Copy of Tax Return and Request for Transcript of Tax Forms: New and Classic.

To Access the Request for Transcript of Tax (Classic) Form

Open a loan file, click the Forms tab on the lower-left.
Click Request for Transcript of Tax (Classic).
Different input fields display on the form depending on whether you select or clear the Use IRS 4506-C checkbox. Use the steps in the procedures provided below to complete these fields.

To Apply Preconfigured Template Data to the Form

To apply a Transcript Request Template with preconfigured data to the form, click the Add From Template button. (Please note, the 8821 version does not apply to the Request for Transcript of Tax (Classic) input form.
Select the template from the Select Request for Transcript of Tax Template pop-up window, and then click Select.
The data from the template is populated to the input form. Manually type or select the values for the remaining fields.

To Complete Fields for the 4506-C Version

At the top of the form, you can select the Default to TQL Rules checkbox.
- Selecting this checkbox automatically enters 1040 and selects option c on line 6, and sets the Year or period requested on line 9 to the previous two years. (For example, if the current year is 2022, the end dates entered here will be 12/31/2021 and 12/31/2020.)
- If you do not select this checkbox, 4506-C transcripts are listed in the TQL Services tool and you will not be able to share the transcripts with investors.
- This checkbox will be selected automatically if the administrator has selected the Default to using TQL Investor Rules rules... checkbox in the 4506-C Service setting in Encompass Settings.
In the Tax Form is for dropdown list at the top of the form, click Borrower, Co-Borrower, or Both, or Other to indicate for whom you are requesting the transcript.
- If you select Other, select an Authorized Signer from the dropdown lists on lines 1a and 2a.
Select the Use IRS 4506-C checkbox to print the 4506-C version of the form.
On lines 1, 2, and 3, type the name, social security number, and address information of the individual for whom the transcript is being requested.
- Or, click Copy from Borrower Summary to copy the information from the Borrower Summary form.
  
  If you are requesting transcripts for a business, specify the company name and employer identification number on lines 1a and 1b.
If you are requesting a W-2 or 1099 for a joint return, include the spouse's name and social security on line 2a and 2b.
On lines 1c and 2c, enter the previous name shown on the last return if different from line 1a.
On line 4, type the address on the last tax return if different from line 3.
On line 5, enter the following details:
- IVES participant information
- Customer file number
- Unique Identifier number
- Client name and contact information
On line 6, type additional third-party information if required. Type the tax form number (for example, 1040, 1065, 1120, etc.) and use the checkboxes to indicate the type of information to include in the transcript.
- If the Default to TQL Rules checkbox is selected, 1040 is automatically entered and option c is automatically selected.
Return Transcripts and Records of Account are available only for the current year and the three previous years.
On line 7, select the checkbox to request that the wage and income contain information from selected forms (W-2, 1098-E, 1099-G8, etc.).
- On line 7a, enter a maximum of three forms.
- On line 7b, select a checkbox to indicate the taxpayer requesting the transcript.
On line 8, enter the ending date of the tax period(s) for which you are requesting the transcript.
- If the Default to TQL Rules checkbox is selected, the Year or period requested is automatically set to the previous two years. (For example, if the current year is 2022 the end dates entered here will be 12/31/2021and 12/31/2020)
At the bottom of the form:
- If line 1a is a corporation, partnership or trust, select a title from the dropdown list.
- Type a phone number of the taxpayer on line 1a or 2a.
If you are using the Request for Transcript of Tax version of the form:
- Click the Save icon after you complete your data entry.
- To create additional request forms, click the Add icon, and then complete your data entry for each additional form. Each time you add a new version of the form, an entry is created in the table above the form.

To Complete Fields When Printing the 4506-T Version

At the top of the form, you can select the Default to TQL Rules checkbox.
- Selecting this checkbox automatically enters 1040 and selects option c on line 6, and sets the Year or period requested on line 9 to the previous two years. (For example, if the current year is 2022, the end dates entered here will be 12/31/2021 and 12/31/2020.)
- If you do not select this checkbox, 4506-C transcripts are listed in the TQL Services tool and you will not be able to share the transcripts with investors.
- This checkbox will be selected automatically if the administrator has selected the Default to using TQL Investor Rules rules... checkbox in the 4506-C Service setting in Encompass Settings.
In the Tax Form is for dropdown list at the top of the form, click Borrower, Co-Borrower, or Both, or Other to indicate for whom you are requesting the transcript.
- If you select Other, select an Authorized Signer from the dropdown lists on lines 1a and 2a.
Clear the Use IRS 4506-C checkbox to print the 4506-T version of the form.

Clearing the checkbox does not affect the version of the form that will be ordered electronically from the IRS Income Verification Express Service (IVES). The 4506-C version will be ordered regardless of whether the checkbox is selected or cleared.
On lines 1, 2, and 3, type the name, social security number, and address information of the individual for whom the transcript is being requested.
Or, click Copy from Borrower Summary to copy the information from the Borrower Summary form.

If you are requesting transcripts for a business, specify the company name and employer identification number on line 1.
If you are requesting a W-2 or 1099 for a joint return, include the spouse's name and social security on line 2.
On line 4, type the address on the last tax return if different from line 3.
On line 5, type additional third-party information if required.
On line 6, type the tax form number (for example, 1040, 1065, 1120, etc.) and use the checkboxes to indicate the type of information to include in the transcript.
- If the Default to TQL Rules checkbox is selected, 1040 is automatically entered and option c is automatically selected.
Return Transcripts and Records of Account are available only for the current year and the three previous years.
On line 7, select the checkbox to receive verification that a return was not filed for the year or period requested.
On line 8, select the checkbox to request that the transcript contain information from W-2, 1099, 1098, and 5498 series forms.
On line 9, enter the ending date of the tax period(s) for which you are requesting the transcript.
- If the Default to TQL Rules checkbox is selected, the Year or period requested is automatically set to the previous two years. (For example, if the current year is 2022 the end dates entered here will be 12/31/2021and 12/31/2020)
At the bottom of the form:
- If line 1a is a corporation, partnership or trust, select a title from the dropdown list.
- Type a phone number at which the taxpayer(s) can be reached.
If you are using the Request for Transcript of Tax version of the form:
- Click the Save icon after you complete your data entry.
- To create additional request forms, click the Add icon, and then complete your data entry for each additional form. Each time you add a new version of the form, an entry is created in the table above the form.

Borrower Signatures

After you have completed the form, send the form to the borrower and/or co-borrower via the eFolder or fax. If faxing the form, the borrower and/or co-borrower must physically sign the form and return it to you. To enable the borrower and/or co-borrower to electronically sign (or eSign) and return the form, send the for as part of an eDisclosure package. For more information, refer to the Working with the eSignable 4506-C Form guide.

Order 4506-C Services

Use the Order 4506-C button to validate borrower tax information by ordering 4506-C tax reports electronically from within Encompass.

Order a 4506-C Report Electronically

Before you submit the order, click the Copy from Borrower Summary button at the top of the form to update the form with any changes that occurred in the borrower summary after the form was sent to the borrower.
Click the Order 4506-C button.

If required fields are missing from the loan file, a message window displays the field IDs. Complete the fields and then click the Order 4506-C button again.
On the Order 4506-C Report window, click the Add icon to attach a signed copy of the Request for Transcript of Tax form, and then select the location where the file is stored.
- To add a file from your hard drive, select Browse from Hard Drive, navigate to the file, and then click Open.
- To add a file from the eFolder or the eFolder Vault (the location used to store files that have been eSigned by borrowers), select Browse from Encompass eFolder or Browse from eFolder Vault, select a document, and then click Continue.
If the borrower has eSigned the Request for Transcript of Tax form, select the Browse from eFolder Vault option.
Review or complete the following information:
- Report Information – Content is populated from the Request for Transcript of Tax input form. Click the Attach icon to browse and attach an electronic copy of the signed Request for Transcript of Tax form from your hard drive. Click the Delete icon to delete the attachment.
The IRS requires that the borrower sign the Request for Transcript of Tax form within 120 days of the request. If Section 8 transcripts are being ordered for a joint return, the spouse's signature is also required.
- Products – Select one or more products to order, and then select a Transcript Option from the list.
- Transcript Years – Select one or more years for the order.
- Contact Information - Enter email addresses (separated by semi-colons) for individuals who receive notifications when the order status changes, or click the Find icon to select Encompass users. By default the current user’s email address is populated.
- Corporation Information – If you select the 1065 or 1120 product option, enter the corporate name and EIN number for the business for which you are requesting the report.
- Comments – Enter comments in the Comments field as needed.
When finished, click the Order button.
Carefully review the information on this window before submitting your order. Orders cannot be canceled after processing has begun.

Check the Status of an Order

After you place an order, click the Check Status button to open the 4506-C Report Results window, which displays the status information in the three sections described below. When you click the Check Status button, any order that has been returned will be automatically imported into the eFolder.

Select an Order

The Select an Order section displays an entry for each order that has been submitted.After you select an entry in the Select an Order section, you can view documents that have been returned for the order or update the order by using the Select Documents to View section or the Update Order section. Each entry in the Select an Order section contains the following information:

Order No.
Order Date
Product Name
Status
Submitted - The order has been submitted successfully.
Unassigned - The order has been submitted, but processing has not begun.
In Process - Processing has begun.
Waiting for Form - The signed authorization form was not uploaded. An update is required.
Waiting for Client Action - An update with a corrected signed authorization form is required.
Sent to IRS - The order has been sent to the IRS.
IRS Rejected - The IRS has rejected the order.
Canceled - The order has been canceled.
Completed - The order has been completed.
Retrieved - The order has been completed and retrieved into Encompass.
Imported - The retrieved order has been imported into the eFolder.
An indicator that the transcripts were ordered for the borrower (B), co-borrower (C), or both (B/C)

Click the View Details link to open the Order Details window, which allows you to view additional information about an order, read comments that have been entered, and access a link to view the 4506-C consent form signed by the borrower.

Search for an Order

If a 4506-C request is complete, but the report has not been returned to Encompass by the service provider due to temporary connectivity issues, you can use the search feature to retrieve the report.

Click the Find icon in the Select an Order section.
Enter an Order Number and select a Product from the list.
If you are searching for a business transcript, enter the EIN Number.
Click Search.
If the status of the order is not Complete, the order will be added to the list of orders on the 4506-C Report Results window.
If the order is complete, the Order Search Results window opens and displays details of the order.

Select Documents to View

Update Order

Request for Transcript of Tax (Classic)

Borrower Signatures

Order 4506-C Services

Check the Status of an Order

See Also