Signing IRS Form 4506 as a Prerequisite to a Mortgage Loan

Free Car Insurance Comparison

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

UPDATED: Jul 16, 2021

Advertiser Disclosure

It’s all about you. We want to help you make the right legal decisions.

We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.

Written By: Jeffrey JohnsonUPDATED: Jul 16, 2021Fact Checked

Many commercial lenders are asking prospective mortgage applicants to sign IRS Form 4506 a “Request for Copy or Transcript of Tax Form” as part of the application process. Once signed, it serves as the lender’s springboard to receive copies of the borrower’s tax return directly from the IRS for as far back as 4 years (or beyond). Presently there are no foolproof processes in place to stonewall the distribution or retention of the return, or to control who can scrutinize the consumer’s income and business return(s). Ordinarily, submitting copies of previously filed tax returns is required for loan approval. But be especially cautious of signing a blanket authorization for the lender to delve into data on a continuing basis without controls in place to insure privacy.

Editorial Guidelines: We are a free online resource for anyone interested in learning more about legal topics and insurance. Our goal is to be an objective, third-party resource for everything legal and insurance related. We update our site regularly, and all content is reviewed by experts.

Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

Full Bio →

Written by Jeffrey Johnson
Insurance Lawyer Jeffrey Johnson

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption