COVID-19: Mortgagees have been unable to obtain tax transcripts during the COVID-19 Emergency, does FHA require Tax Transcripts directly from the Internal Revenue Service (IRS)?

No, the Mortgagee must obtain the Borrower’s signature on the appropriate IRS form to obtain tax returns directly from the IRS for all credit-qualifying Mortgages at the time the final Uniform Residential Loan Application (URLA) is executed. If FHA requires tax returns as required documentation for any type of Effective Income, in lieu of signed individual or business tax returns from the Borrower, the Mortgagee may obtain a signed IRS Form 4506, Request for Copy of Tax Return; IRS Form 4506-T, Request for Transcript of Tax Return; or IRS Form 8821, Tax Information Authorization; and tax transcripts directly from the IRS.

For additional information, see Handbook 4000.1 II.A.4.c.x. or II.A.5.b.x. available at: https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh

HQ Policy Determination - COVID-19 guidance


All policy information contained in this knowledge base article is based upon the referenced HUD policy document. Any lending or insuring decisions should adhere to the specific information contained in that underlying policy document.


Topic Number: KA-05454