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You Got Questions, I have Answers -- 4506t, Tax Returns & K1 Schedule
March 2nd, 2011 7:15 AM

Question: the lender asked 4506t to request IRS
scripts copy, why they still need a copy of
the tax return?

A: The lender did request the tax return copy
from IRS, but they can only get the summary
info. After this IRS scripts, the lender will
request the detail of the tax returns.
That's why the lenders will ask a copy
of the tax returns.

The lender will usually ask a returns when
any of the following happens:
1)Non-zero on Schedule E. That means you
have rental properties.

2)Non-zero on Schedule C. That means you
have a business, sometimes the small business.

3)Non-zero K1 schedule. This is tricky.
When you purchase ETF mutual fund, you will get
K1 schedule. And if you have a business
in partenship, you will have K1 schedule as
well. The lender can not tell the difference.
So they will request the K1 schedule as well.

 


Posted in:General
Posted by Eric Fang on March 2nd, 2011 7:15 AMPost a Comment

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