March 2nd, 2011 7:15 AM by Eric Fang
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 copyfrom IRS, but they can only get the summaryinfo. After this IRS scripts, the lender willrequest the detail of the tax returns.That's why the lenders will ask a copyof the tax returns.
The lender will usually ask a returns whenany of the following happens:1)Non-zero on Schedule E. That means youhave rental properties.
2)Non-zero on Schedule C. That means youhave a business, sometimes the small business.
3)Non-zero K1 schedule. This is tricky.When you purchase ETF mutual fund, you will getK1 schedule. And if you have a businessin partenship, you will have K1 schedule aswell. The lender can not tell the difference.So they will request the K1 schedule as well.