|
LAGUNA HILLS, CALIF., Dec 29, 2009 –On December 29, 2009, the IRS announced a notice was issued by the IRS Counsel extending the acceptable taxpayer signature date on Form 4506-T and Form 4506-T EZ from 60 days to 120 days from the IRS received date. The notice is effective as of December 18, 2009.
The IRS noted in the announcement that normally, these types of notices are not effective until they are published in the Internal Revenue Bulletin, scheduled for January, 19, 2010. However, the effective date was confirmed by the IRS as December 18, 2009.
“It’s not often we receive good news from the IRS”, said Suzanne Mosher, 4506-T expert. “The policy extension will greatly improve flexibility when completing pre and post closing requirements.”
“Accuracy in all phases of loan origination, processing, and underwriting has never been more important than in today’s mortgage market”, says Kim Buettgenbach, Audit Manager at Hyperion Capital Group in Lake Oswego, Oregon. “I am certain that investor voices were heard by the IRS. Proper due diligence on all closed loans is a top priority with all investors. The 4506-T and compliance team at QuestSoft are an important part of our customer commitment to timeliness and accuracy throughout the loan process.”
The official citation is as follows:
Subject: IRS Expands Window for Submitting Return Disclosure Authorizations
Citations: Notice 2010-8; 2010-3 IRB 1
The IRS has issued interim rules (Notice 2010-8) that double the period for submission to the IRS of taxpayer requests for and consents to disclosure of returns and return information under section 6103(c). Comments are due by January 25.
The notice extends from 60 days to 120 days the period within which a signed and dated authorization must be received by the IRS in order for the authorization to be effective. The interim rules are applicable until the IRS amends the section 6103(c) regulations.
Section 6103(c) sets out the requirements for return and return information disclosures to third-party designees. In Notice 2010-8, the IRS said that the 60-day limitation on the period of taxpayer-provided authorizations has proven problematic because some institutions that help taxpayers in their financial dealings have had trouble obtaining and submitting the authorizations within the existing 60-day window. Accordingly, the IRS will amend the section 6103(c) regulations so that taxpayers and the institutions and professionals who help them will have double the time to submit the authorizations. Until the amendments are in place, disclosures permitted under section 6103(c) may occur as long as the IRS receives the written authorization within 120 days following the day on which the request or consent was signed and dated by the taxpayer. The interim rules apply to all authorizations executed on or after the date that is 60 days before the publication of Notice 2010-8.
About QuestSoft
Laguna Hills, Calif.-based QuestSoft is an established provider of comprehensive and automated compliance software and services to the mortgage, banking and credit union industries. The company’s products enable more than 1,500 banks, credit unions and mortgage companies to simplify the collection, analysis, compilation and reporting of key lending regulatory report data.
|
|
