top of page

IRS Delay for 4506-C Form Update

Updated October 16, 2022


Our goal at Service 1st is to keep you informed of IRS notifications and advise how they impact your ordering process for tax transcript information. We continue to advocate on your behalf to the IRS through the IRS Working Group and industry counterparts.
 

UPDATE: The IRS has delayed the deployment of the OCR implementation for Form 4506-C to December 1, 2022.


We have already deployed the new IRS requirements on January 18, 2022, along with the minor UI changes for ordering products. For example, if you want standalone W-2s, in the ordering process check the W-2 option. You will be presented with a new form upload requirement and a tooltip for the W-2 order.


 

Per the latest announcement from the IRS regarding their current efforts of modernization as required in the Taxpayer First Act, here are some critical dates to remember:


The new 4506-C form (OCR version) will be released by the IRS on December 1, 2022.

The new IRS form 4506-C will not be accepted until December 1, 2022, and will not be mandatory until March 1, 2023. Both form versions will be processed by the IRS through February 28, 2022.


On March 1, 2023, only the new form version will be accepted.

NOTE: All dates are dependent upon the IRS and may be subject to change.


Click here to download the new 4506-C form.

Click here for schema if recreating the form using document technology

 

Please read the below information and the IRS IVES notification as this will impact your 4506-C ordering process and the fees you will be charged by the IRS. Taxpayer First Act.


The IRS IVES team states the first step in modernization includes Optical Character Recognition (OCR) software to process your Form 4506-C requests. Here are the key takeaways:


1. “Be clear of any editing marks” Form 4506-C should not display any edits or multiple forms

  1. If Form 4506-C includes edits, the form will not pass OCR and will be processed using the existing manual IVES protocol following that processing timeframe. As well, standard IRS rejections will apply. After January 1, 2022, IRS rejections may increase for “edited” forms and extended processing timeframes.

2. “Only identify the transcripts, tax years, and/or taxpayers that need to be processed” The clean form should only display the details and checkbox for the transcript, tax years, and/or taxpayer you are requesting versus multiple transcript types

  1. Line 6 should contain a single transcript request only such as 1040

  2. A single checkbox should be selected to match Line 6

  3. Line 8 should display only the years you are requesting

3. “List the data on the assigned lines” Same as above

  1. Line 6 should contain a single transcript request only such as 1040

  2. A single checkbox should be selected to match Line 6

  3. Line 8 should display only the years you are requesting

TRV Services primary concern is ensuring that our customers have the most recent and up-to-date information from the IRS to make their lending decisions and we will always operate with that in mind.

For more information from the IRS, click here.


Click here for User Guide on instructions to complete the new 4506-C form (Oct 2022)


------

Happy to help. Our leadership team and crew value our clients. We are committed to 'beyond the expected' service.

Comentários


bottom of page