Audio version of this articles is attached below for your convenience. The Internal Revenue Service (IRS) has announced that it will end the practice of faxing tax transcripts, as well as mailing tax transcripts to third parties on behalf of tax payers.  In an IRS news release on June 4, 2019, the IRS informed the public of its continued efforts to protect taxpayer information.  Accordingly, it has determined that it will end the way it has been transmitting tax transcripts via fax and mailing tax transcripts to third parties, such as schools, etc. 

Beginning June 28, 2019, the IRS will no longer fax a tax transcript to individuals or to third parties.  Taxpayers will still have other means for obtaining a copy of their tax transcripts by:

  • Accessing the IRS.gov or IRS2GO app in order to access the Get Transcript Online.  This does require the taxpayer to verify their identity, but then they may immediately download or print their tax transcript.
  • Using the IRS2GO app or IRS.gov to access Get Transcript by Mail.  This method results in the tax transcript being delivered by mail within 10 days to the address of record (i.e., the address that was used when filing the tax return).
  • Calling 800-908-9946 for an automated Get Transcript by mail feature. 
  • Submitting the traditional Form 4506, Form 4506-T, or Form 4506T-EZ.  This method results in the tax transcript being mailed to the tax payer’s address as used on the tax return submitted.

Also, on July 1, 2019, the IRS will stop providing transcripts to third parties that are requested through the use of Form 4506, Form 4506-T, and Form 4506T-EZ.  (The IRS will be amending these forms to remove the option to have the tax transcript mailed to a third party.)

As indicated above, individual taxpayers may still use the Form 4506, Form 4506-T, and Form 4506T-EZ to obtain a copy of their tax return or tax transcript, which will be mailed to the tax payer’s address of record.
 
Note that the change in IRS’ procedures regarding tax transcripts does NOT affect the ability of financial aid applicants to use the IRS Data Retrieval Tool (DRT) when completing the FAFSA.
 
Some institutions may elect to utilize the Income Verification Express Service (IVES)that IRS offers.  Institutions who elect to employ this service must choose to either contract with a current IVES participant (e.g., Veri-Tax, etc.), or sign up to be IVES participants themselves.  There is a $2.00 per tax transcript request.  (Note that such a charge paid to use the IVES process to obtain tax transcripts may not be passed on to a student who is selected for verification purposes in the application for Federal Student Aid.)
 
Since the IRS began masking most of the name and Social Security number on tax transcripts, the IRS implemented the Customer File Number.  Schools can use the Customer File Number in conjunction with, for example, a student identification number that the school assigned when requesting the tax transcript to aid in matching the tax filer document with the student.  See the IRS FAQs page for more information about the Customer File Number and tax transcripts.
 
Should you have any questions regarding the information in this edition of our DYK, please feel free to contact FAME Customer Service through the Client Solution Center.

Publication Date:  June 14, 2019
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This material is presented for informational and educational purposes only and should not be considered to be giving legal advice.