It’s income tax filing time and there may be some confusion on when you are able to use 2019 income to qualify your Borrower. Below are the IRS tax filing dates based on tax schedules.
- 1040 person tax returns tax filing deadline is April 15, 2020.
- 1065 partnership tax returns and S-corp ( 1120S) tax filing deadline is March 16, 2020.
- 1120 Schedule C tax returns tax filing deadline is April 15, 2020.
- 2017 & 2018 IRS stamped tax returns WILL NOT be acceptable. They will need to be 4506 validated PRIOR to closing.
- 2019 income for self employed Borrowers WILL NOT be used unless they are filed with the IRS.
IRS 4506t validation IS NOT always required UNLESS:
- Handwritten paystubs are provided
- Borrower works for a family member
Any income source that IS NOT derived from W2 or 1099 ( self employed income, etc)
After the April 15, 2020 tax deadline all tax filing extensions will require a copy of the IRS extension, proof of the extension fee paid, source of the funds to pay it, and 2019 tax returns validated.