All about IRS tax transcript

All about IRS tax transcript

A tax transcript is a summary containing information about your tax returns. With the IRS transcript you can access all your past tax information. You can request and get a tax transcript from the IRS. Here are various types of transcript and how you can get it.

A transcript is not a copy of your tax return. If you want a copy of the tax return, you can apply via Form 4506 with a $50 application fee.

What is the IRS transcript?

An IRS transcript also known as tax transcript is a summary of information on your tax returns. The IRS provides five types of tax transcripts. Tax return transcripts contain most line item from your tax such as AGI-adjusted gross income and also the information relating to your filing status, return type and tax payments.

It doesn’t reveal complete personal information like only displays the last four digit of your social security number (SSN). However, it provides all financial and tax information such as wages, taxable income.

Why do you need an IRS tax transcript?

You need IRS tax transcripts as income proof to borrow money from the lender.

• It is useful for applying for an auto loan, mortgage or other loan or financial aid application for studies.
•  It is an alternate to a copy of a tax return that a lender or financial aid often accepts for lending money.
• It helps in resolving tax notices, issues and other discrepancies.
• Research accounts when they are under IRS audit.

Types of IRS transcript you can request for?

1. Tax account transcript: It provides an overview of the account. It shows details about filings, credits, withholdings and follow-up transactions including penalties, IRS enquiries. In short, almost all IRS action on your account will appear on the tax account transcript.
2. Tax return transcript: It shows most lines from your original tax return as it processes. But, if any changes are made to the return after its processing; then such changes including any amended return are not reflected.
3. Wage and Income transcript: It provides information from the forms-2, 1099, 1098 and Forms 5498, IRA Contribution Information. It helps in research to accurately file a late or extended tax return, a record of personal income and verify employment.
4. Record of Account transcript: It is a combination of tax account and tax return transcript. It shows you a better picture of your original tax return filed and changes initiated after processing the return. This transcript helps file an amended return as original tax return information plus any change made to return
5. Verification of non-filing Letter: This transcript automatically generates when the IRS doesn’t have a return on file or has not processed your filed return. It helps taxpayers to apply for public benefits such as low-income housing that requires proof of non-filing.

How can I request for an IRS tax return transcript?

You can request for IRS tax transcript in three ways:

1. Online request

It is a quick and easy way to get an IRS transcript. Here, this process to get it

• Visit the IRS Get transcript site.
• In case you want the transcript to display on the screen(“Get transcript online”). For this, you need to authenticate your identity.
• You will need the following:

1. Your social security number, date of birth, filing status and mailing address of the latest tax return.
2. Access to your email account.
3. Personal account number from credit card, home equity loan, car loan and mortgage.
4. Mobile number with your name on the account

• You can get all transcripts online and even can print and download it.

2. Request by mail

• Call the IRS on the number 800-908-9946.
• Provide details: SSN, date of birth and tax identification number and request for transcripts
• The transcript is sent to you by mail.
• It will usually take 5 to 10 days to process.

3. Form 4506

With this form, you can request an IRS transcript on paper. You can print a copy of  the IRS form 4506 or Form 4506-T-EZ, fill the details and mail it. It takes 30 days to process your orders.

Note: Amid COVID-19 situation, the IRS has stopped taking requests for IRS transcript on paper.