The Term “IRS Transcript” Is
Currently Making Headline News.
It seems many people, including the media, were unaware such documents exist. These are not some mysterious documents locked away in a top secret IRS vault. Simply put, an IRS transcript is your tax file. It contains all the information the IRS currently has on file for individual taxpayers.
If you have ever applied for a loan, including a student loan, or a mortgage, chances are you have authorized the lender access to your tax file. They would have received the information in the form of a transcript. Also, if you have ever hired a tax professional to help with back taxes, unfiled tax returns, or other IRS audits or notices, you likely gave written permission for your tax representative to obtain your tax transcript.
Accessing pending or planned actions against you by the IRS is critical in resolving your tax problems. Your IRS file contains all the information that has been sent to the IRS from third parties such as income, mortgages, gambling winnings, etc. Your file also contains a complete record of your tax filings, payments, penalty, and interest charges.
If you are working with a tax professional, they may have you complete a Letter of Engagement before proceeding. This letter should clearly outline the scope of the work and the costs involved. At this time, the tax professional will likely obtain a Power of Attorney (POA) to access your tax records for a time period outlined in the POA. Your tax professional will use the information obtained from the IRS along with any information you have provided to determine the best resolution for your particular tax problem.
Transcript Types
Before we go further, let’s discuss the various types of transcripts. The following transcripts are available from the IRS at no charge:
- Tax Return Transcript – shows most line items including your adjusted gross income (AGI) from your original tax return (Form 1040, 1040A or 1040EZ) as filed, along with any forms and schedules.
It does not show changes made after you filed your original return. This transcript is only available for the current tax year and returns processed during the prior three years.
A tax return transcript usually meets the needs of lending institutions offering mortgages and student loans.
Note: The secondary spouse on a joint return must use Get Transcript Online or Form 4506-T to request this transcript type.
When using Get Transcript by Mail or phone, the primary taxpayer on the return must make the request.
- Tax Account Transcript – shows basic data such as return type, marital status, adjusted gross income, taxable income, and all payment types. It also shows changes made after you filed your original return.
This transcript is available for the current tax year and up to 10 prior years using Get Transcript Online or Form 4506-T.
When using Get Transcript by Mail or phone, you’re limited to the current tax year and returns processed during the prior three years.
If you made estimated tax payments and/or applied an overpayment from a prior year return, you can request this transcript type a few weeks after the beginning of the calendar year to confirm your payments prior to filing your tax return.
- Record of Account Transcript – combines the tax return and tax account transcripts above into one complete transcript.
This transcript is available for the current tax year and returns processed during the prior three years using Get Transcript Online or Form 4506-T.
- Wage and Income Transcript – shows data from information returns the IRS receives such as Forms W-2, 1099, 1098 and Form 5498, IRA Contribution Information. Current tax year information may not be complete until July.
This transcript is available for up to 10 prior years using Get Transcript Online or Form 4506-T.
- Verification of Non-filing Letter – provides proof that the IRS has no record of a filed Form 1040, 1040A or 1040EZ for the year you requested. It does not indicate whether you were required to file a return for that year.
This letter is available after June 15 for the current tax year or anytime for the prior three tax years using Get Transcript Online or Form 4506-T. You must use Form 4506-T if you need a letter for tax years older than the prior three years.
A transcript can show return and/or account data. It also can show changes or transactions made after you filed your original return. Transaction codes consist of three digits. They are used to identify a transaction being processed and to maintain a history of actions posted to a taxpayer’s account.
Note: A transcript is not a photocopy of your return. If you need a copy of your original return, complete and mail Form 4506, Request for Copy of Tax Return, along with the applicable fee.
Ways to Get Transcripts
There are a number of ways to get a transcript, depending on your needs:
- You may register to use Get Transcript Online to view, print, or download all transcript types listed above.
- If you’re unable to register or you prefer not to use Get Transcript Online, you may order a tax return transcript and/or a tax account transcript using Get Transcript by Mail or by calling 800-908-9946. It usually takes 5 to 10 calendar days for delivery.
You may also request any of the transcript types listed above by faxing/mailing Form 4506-T, Request for Transcript of Tax Return as instructed on the form.
New Tax Transcript Format and the Customer File Number
A new transcript format is now in place to better protect your information from identity theft. This new transcript partially masks the personally identifiable information of everyone listed on the tax return. All financial entries will remain fully visible to assist with tax preparation, tax representation, and income verification.
The IRS is taking this action to better protect taxpayer data. Because of data thefts outside the tax system, cybercriminals often attempt to impersonate taxpayers and tax professionals. Thieves attempt to gain access to transcript data, which can help them file fraudulent tax returns or steal additional data of other individuals listed on the transcript.
The following information is visible on the new tax transcript:
- Last four digits of any SSN listed on the transcript: XXX-XX-1234
- Last four digits of any EIN listed on the transcript: XX-XXX1234
- Last four digits of any account or telephone number
- First four characters of the last name for any individual (first three characters if the last name has only four letters)
- First four characters of a business name
- First six characters of the street address, including spaces
- All money amounts, including wage and income, balance due, interest and penalties
Tax professionals with proper authorization may now request unmasked Wage and Income Transcripts for tax preparation and e-filing purposes.
Previously, the IRS announced it would stop faxing individual and business transcripts as of February 4, 2019. That date has now been extended. The IRS is reviewing the timeframe and will make an announcement in advance of stopping the service.
Here’s a sample of a redacted tax transcript.
Bayshore CPA’s, P.A. are your local Certified Public Accountants
and Tax Resolution Specialists conveniently located
in Mooresville, North Carolina
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