IRS Reverses Shutdown Policy, Will Process Income Verification Requests

The Internal Revenue Service, responding to pressure from the Mortgage Bankers Association and other industry trade groups, said it would resume processing tax transcript information requests it originally said it had to suspend during the partial government shutdown.

The agency told MBA effective Jan. 7 it would resume such requests through the Income Verification Express Service program, known as IVES, which had been suspended since the partial government shutdown went into effect Dec. 22. Lenders use IVES to verify income for loan originations.

MBA and other industry trade groups had expressed concerns that the suspension could result in delayed mortgage closings.

Because it will take time to ramp this service up to normal operating status, it may initially take a few days to process requests that have been backlogged since the funding lapse began in December, noted MBA President and CEO Robert Broeksmit, CMB.