MBA Reminds Members to Act Now on New IRS Tax Transcript Requirements
The Mortgage Bankers Association reminds its members that new Internal Revenue Service requirements going into effect July 1 for participants using the Income Verification Express Service, a service supporting the lending industry to verify loan applicant’s incomes.
On June 23 the IRS notified vendors who provide tax transcripts (such as IVES vendors) that they need to implement new requirements to continue providing tax transcript services. These new requirements are intended to better protect taxpayer information. The updated requirements include certain new assessments and certifications for vendors and lender clients.
In a communication with members, MBA President and CEO David Stevens, CMB, said MBA has asked the IRS to delay the implementation date and is working for further clarity around the requirements. However, as of this writing the IRS has refused to delay the implementation.
“While the IRS has not made their new certification requirements available to the public, we have learned they will include items such as a requirement that lenders provide their vendors with the Social Security numbers of any individual authorized to use the tax transcript process,” Stevens said. “Some of the new requirements must be implemented by July 1 and thus demand your immediate attention. Other requirements must be implemented within 45 days.”
In the June 23 letter (https://www.irs.gov/uac/irs-takes-steps-to-strengthen-ives-program-and-works-with-industry-to-quickly-implement-new-safeguards), the IRS said the new requirements were part of a wider effort to protect taxpayer information and strengthen authentication standards.
“The new requirements will help further ensure IVES participants verify and validate their clients using the system,” the IRS said. “The IRS will only accept transcript requests from IVES participants who certify that they will submit requests only from clients who have been verified using the new requirements.”
According to the IRS, vendors will be required to suspend access to the transcript service for any lender that fails to complete the required certification by midnight, Friday, July 1.
“I strongly recommend that you reach out to your vendor today to obtain the requirements and complete the necessary certifications and assess the impacts on your business operations,” Stevens said.
MBA members who have questions about the new IRS requirements can contact Rick Hill, MBA Vice President of Industry Technology, at (202) 557-2718 or rhill@mba.org.
