On October 31, 2022, the Internal Revenue Service (“IRS”) published a new version of Form 4506-C. Form 4506-C allows cleared and vetted Income Verification Express Service (“IVES”) participants to request tax return information with permission from an authorized taxpayer.
The revised version of the form includes many changes to make the form better suited for optical character recognition (“OCR”) modernization efforts. To read more about the IRS moving to a more automated process, click here.
Along with publication of the new form, IVES participants have been informed the current version of the Form 4506-C will continue to be accepted through February 28, 2023. For all submissions dated March 1, 2023, and after, only the new version of the Form 4506-C will be accepted by the IRS for transcript requests.
DocMagic is still reviewing the updates needed to accommodate the new form and will advise at a later date specific information about when DocMagic will make the change over to the new form.
There are noticeable changes to the new draft of Form 4506-C including:
- Lines 1a. and 2a. provide the current name of the tax filer and joint spouse, if applicable, instead of the tax filer name(s) from last tax return.
- New lines 1c. and 2c. have been added to provide the names of tax filers on the last tax return, if different from current name(s) in 1a and 2a.
- Line 5a. now includes a new section for the IVES participant ID number, in addition to the IVES participant name, address, and SOR mailbox ID.
- New line 5c. provides space to add an optional unique identifier. It can be entered with “up to 10 numeric characters to create a unique identifier that will show in the mailbox file information.”
- New line 5d. includes the client’s name, address, and telephone number. The form and instructions state that this section cannot be left blank or marked as not applicable (NA). The instructions for Line 5d. notes that the client company is the party that receives the requested tax transcripts from the IVES participant. If the IVES participant is also the client company, the IVES participant information will be the same on lines 5a. and 5d.
- Line 7 now has additional spaces added. Line 7a. allows for up to three tax form numbers to be added and line 7b. provides boxes to indicate to which taxpayer(s) the request for wage and income transcripts applies. If no boxes are marked, transcripts will automatically be provided for all listed taxpayers.
- The signature section adds a new box for each signer to check when the form is being electronically signed. Forms signed electronically without the box marked by the signer will be rejected. Only authorized IVES participants are allowed to submit requests with electronic signatures.
To review a copy of the form and instructions, click here.
