The IRS starting Monday will begin processing previously submitted requests for quick tax transcripts so that lenders can confirm a potential borrower’s income when processing loan applications.
The requests are made under the IRS’s Income Verification Express Service (IVES) program used by lenders, including mortgage lenders and small business lenders, and higher education institutions. The IRS had put the IVES program on temporary hold because of facility closures and staffing limitations stemming from the coronavirus pandemic.
- The IVES system allows a handful of those entities to directly—or indirectly through a service provider, such as credit reporting giant Equifax—receive expedited tax transcripts from the IRS, generally within two to three business days.
- The IRS in an email alert Monday said it can now begin working through its backlog because it will have a limited number of staff returning to service centers. Even so, processing will be delayed, the agency said.
- The IRS has recalled about 10,000 employees to campuses across the nation, asking them to work voluntarily for incentive pay.
- “We will not be accepting any new work until we significantly reduce existing inventory,” the agency said in the alert. “A subsequent update will be provided when new work will be accepted.”