Did you know that the IRS stores Taxpayer records and data online? Did you know that most of this information is readily available for Taxpayer access? In our line of work here at Bryson Law Firm, LLC, we frequently access Taxpayer accounts and information using the available IRS transcripts for use in our IRS Tax Resolution endeavors, but we have found that many Taxpayers are unaware of just how much information can be accessed from the IRS directly. As a result, today on the Bryson Blog, we’re breaking down the different types of IRS Transcripts.
There are 5 different types of IRS transcripts that Taxpayers and/or their authorized representatives can access at no cost. Those include Tax Return Transcripts, Tax Account Transcripts, Record of Account Transcripts, Wage and Income Transcripts, and Verification of Non-Filing Letters.
The easiest way to access these transcripts is through the IRS’ online “Get Transcript Online” access (https://www.irs.gov/individuals/get-transcript). Transcripts can also be requested via faxing or mailing in IRS forms, going online to request the transcripts be sent via USPS mail, or by calling the IRS to request them.
Tax Return Transcripts:
A Tax Return Transcript shows the line items from a Taxpayer’s original IRS Form 1040 Individual Income Tax Return filing, along with any forms and schedules filed. Tax Return Transcripts can be accessed for the current tax year as well as the three prior tax years. This is NOT a copy or image of the actual return filed but does typically supply enough information to satisfy loan application and/or income verification requirements. If you need a copy of your tax return for loan and/or income verification purposes and can’t track down a copy of the return you filed, this may be a helpful, quick-to-access tool you can use.
To request a copy of the return filed, Taxpayers must use the IRS Form 4506 Request for Copy of Tax Return. Fees are typically required.
Ways to Access: Get Transcript Online, Get Transcript by Mail (using the online request form), IRS Form 4506-T Request for Transcript of Tax Return, Call to IRS automated phone transcript service. (NOTE: secondary Taxpayers may have issues accessing their records via telephone or through the Request Transcript by Mail form – the primary Taxpayer often must make the request this way.)
Tax Account Transcripts:
A Tax Account Transcript shows summary information such as filing status, taxable income, and payments. Different from the Tax Return Transcript, the Tax Account Transcript also provides information from changes made after the original tax return filing. This could be either from amended return filings or an IRS adjustment. These transcripts can be accessed for the current tax year as well as the 9 prior tax years when the request is made using the Get Transcript Online feature and/or the IRS Form 4506-T Request for Transcript of Tax Return. Only the current tax year and 3 prior tax years are available when transcripts are requested via online Get Transcript by Mail and/or through calling the IRS automated phone transcript service.
This is the type of IRS transcript we most frequently access and use at Bryson Law Firm, LLC. When a new Client hires our firm, we perform a detailed IRS Tax Account Transcript Analysis to identify balances due at the original return filing, unfiled returns, adjustments made after the filing date, payments made/credits applied toward the tax year, notices issued, collections activity, and more. Gathering this information enables us to concrete our Case Plan for moving forward.
Ways to Access: Get Transcript Online, Get Transcript by Mail (using the online request form), IRS Form 4506-T Request for Transcript of Tax Return, Call to IRS automated phone transcript service.
Record of Account Transcripts:
The Record of Account Transcripts combines the tax return and tax account transcript data into one complete transcript. It is available for the current tax year and 3 prior tax years.
Ways to Access: Get Transcript Online, IRS Form 4506-T Request for Transcript of Tax Return.
Wage and Income Transcripts:
The Wage and Income Transcripts show data from tax forms submitted to the IRS by employers and others, such as W-2s, 1099s, 1098s, etc.
Bryson Law Firm, LLC also often uses these transcripts in our IRS Tax Resolution endeavors – particularly when a Taxpayer comes to see us with several years of unfiled returns. These records can be used to ensure all income is reported on a Taxpayer’s tax return – particularly if the Taxpayer has income from several sources each year. It is helpful to use the Wage and Income Transcripts to reconcile with the Taxpayer’s own records for completeness. The Wage and Income Transcripts can also be useful on overdue tax return filings when the Taxpayer does not have records.
NOTE: The Wage and Income Transcripts do not reflect any State withholdings, so the Taxpayer may need to obtain the W-2s to file a complete State tax return.
Taxpayers are typically able to access up to 85 income documents. If more than that were issued to the IRS, the transcript may not generate data online. In that situation, Taxpayers should submit the IRS Form 4506-T Request for Transcript of Tax Return. These transcripts can be accessed for the current tax year as well as the 9 prior tax years when the request is made using the Get Transcript Online feature and/or the IRS Form 4506-T Request for Transcript of Tax Return.
Additionally, on current tax years, the Taxpayer may see a message of “No Record of return filed”. This means that the information has not yet been coded into the transcripts. Taxpayers typically will not be able to view current year data until late May.
Ways to Access: Get Transcript Online, IRS Form 4506-T Request for Transcript of Tax Return.
Verification of Non-Filing Letter:
A Verification of Non-Filing Letter identifies tax years in which the IRS has no record of an IRS Form 1040 filed. This transcript does NOT identify whether the Taxpayer has a legal filing obligation in that tax year. This transcript is available for the current tax year after June 15th. These transcripts can be accessed for the current tax year as well as the 3 prior tax years when the request is made using the Get Transcript Online feature and/or the IRS Form 4506-T Request for Transcript of Tax Return. For older tax years, only the IRS Form 3506-T Request for Transcript of Tax Return will work.
Ways to Access: Get Transcript Online, IRS Form 4506-T Request for Transcript of Tax Return.
Have question about IRS transcripts or need help obtaining them/deciphering them? As mentioned previously, Bryson Law Firm, LLC often accesses and uses IRS transcripts as part of our IRS Tax Resolution efforts – particularly in our Initial Case Discovery phase. Contact our offices today for assistance with your IRS transcript needs.
