Article by Roger Schlueter
Banks and the SBA have many forms that you will be filling out when applying for a Commercial Loan. One of those forms is the IRS Form 4506-T. This form is sent to the IRS to request a Transcript of Tax Returns for as many as four years. The form may be signed by an individual for a joint personal return or a member of a corporation or LLC for Company Filings. The Transcript is a summary of all pertinent information that was reported on the Tax Return sent to the IRS. Most people come into contact with this form when applying for a home mortgage.
The SBA (U.S. Small Business Administration) will have this form filled out on every SBA Loan that is originated. Banks may or may not use this form, to tell if you are telling the truth on your Tax Returns. The Reason for this form is that a person could concoct a phony Tax Return to show the bank in order to obtain a Business Loan. Again, SBA is adamant about getting this form filled out on every loan whereas the Banks are hit and miss on this form and hit and miss on verifying the Tax Returns as well.
The Form itself is very easy to fill out. First the form asks for the name and SSN (social security number) of the person or entity that is on the Tax Return. Then is asks for the joint name and SSN on the Tax Return if there is one. The form then asks for the Current Name, and Address and the Previous Address if different on the last return filed. The form then asks for the name, address and phone number of any third party requesting the form – this is usually the bank. The form then asks what forms are requested i.e. 1040 or 165, 1120 etc. and what kind of information. This information is usually a Return Transcript which will include all pertinent information on you last few years tax returns. The form will then ask what years are requested by Month/Day/Year and the last item on the form is your signature, date and telephone number. There is a place for a spouses signature but the spouses signature is not required.
The Form 4506-T – Request for Transcript of Tax Return is a fairly simple form which is faxed to the IRS and then returned by mail to the bank or third party requesting the information. Remember the reason for the form is very simple – to make sure the Tax Returns you provide to you lender are legitimate and not altered to help you get the loan. Borrowers that turn in altered or concocted financial Tax Returns and Personal Financial Statements can be Arrested under Conspiracy and given jail time by the courts. It pays to always tell the truth on financial Tax Returns.
Please direct any questions to roger@rogerschlueter.com . I also have another website at schlueterfinancial.com .