Overview
Submit a 4506-C Borrower Assisted order to request personal tax transcripts for income verification. This option allows your borrower to authorize the tax transcript request directly through the IRS online process instead of providing a signed 4506-C form upfront with the initial order.
Before you start, consider the following: (Charles - are the below statements true for Tax Transcripts? Was not in your guides, but often find this type of detail is helpful to lenders before starting a process that alerts their applicants…):
Give your applicant(s) advance notice. Let them know they’ll receive an email with instructions to visit IRS.gov and authorize the release of their tax transcripts.
Encourage your applicant(s) to complete the authorization promptly. They’ll need to access their IRS Online Account using ID.me, review the transcript request, and approve it before the transcripts can be retrieved.
Submit the order
Follow these steps to submit a 4506-C Borrower Assisted order for personal transcripts on the AutomatIQ® Borrower Portal.
Visit the AutomatIQ® Borrower Portal and sign in using your credentials.
Click Start a New Loan.
Enter your Loan Number.
Select Tax Transcripts, then ensure Borrower Assisted is selected.
Enter the required Applicant Information. Required fields include:
First Name
Last Name
SSN
Email
Current Address
City, State and Zip Code
If applicable, click Add Applicant to add another applicant, then enter the required information.
Click Next.
Select Personal.
Select Individual or Joint based on your order.
Tip: For orders with multiple applicants, choose Individual to create a separate request for each applicant or Joint to create one combined request for a borrower pair.
Choose a product from the Select Product dropdown. Options include:
1040: U.S. Individual Income Tax Return.
W-2: Shows most line items from the original Form W-2 as filed.
1099: Shows most line items from the original Form 1099 as filed.
1098: Shows most line items from the original Form 1098 as filed.
5498: Shows most line items from the original Form 5498 as filed.
Select the applicable option from the Select Type dropdown. Options include:
Return Transcript: Shows most line items from the original U.S. Individual Income Tax Return as filed, along with any forms and schedules.
Account Transcript: Shows primary data such as filing status, taxable income, and payment types. It also shows changes made after you filed your original return.
Record of Account: Combines the original U.S. Individual Income Tax Return and tax Account Transcripts into one complete transcript.
Select the applicable year(s) under Select Year(s).
Optionally, upload a backup signed 4506-C form to help keep your order moving if your applicant does not complete the Borrower Assisted authorization. Providing the form upfront allows it to be used, if needed, without requesting it from you later. There are two options for uploading the signed 4506-C form:
Option 1: Wet Signed: Click Upload 4506-C Form, then locate and select the completed, wet-signed 4506-C form from your local drive.
Option 2: eSigned:
Select the Electronic Signature checkbox.
Select the applicable eSign vendor from the Select eSign Vendor dropdown.
Click Upload 4506-C Form, then locate and select the completed eSigned 4506-C form from your local drive.
Upload the corresponding Audit Log, or select the attestation checkbox to confirm that you have the Audit Log and will provide it upon request.
Tip: For an eSigned order, you can upload up to two documents: the eSigned 4506-C form and the corresponding Audit Log. Depending on the selected eSign vendor, the Audit Log upload button may be labeled Certificate of Completion, Audit Trail Certificate, Audit Trail, or Audit Log.
Optionally, enter up to three additional email addresses in the Choose Recipient Email(s) field to receive order status notifications.
Click Next.
Review the order details, then click Submit to send your 4506-C Borrower Assisted order.
Note: As a best practice, let your applicant(s) know they’ll receive an email with instructions to authorize the release of their tax transcripts and encourage them to complete the authorization promptly.
Follow these steps to submit a 4506-C Borrower Assisted order for personal transcripts on Encompass® Desktop.
Sign in to Encompass® Desktop using your credentials.
In your Pipeline, select the appropriate loan from the list.
From the Services tab in the left-hand navigation bar, select Order Verifications.
Select CoreLogic Tax Transcripts from the My Providers tab in the Verifications popup.
Click Submit to launch the application.
In the Verification Type section, select the Borrower Assisted checkbox.
Select Personal.
Select Individual or Joint based on your order.
Tip: For orders with multiple applicants, choose Individual to create a separate request for each applicant or Joint to create one combined request for a borrower pair.
Confirm the applicable borrower(s) are selected. Clear the checkbox for any borrower you do not want to include in the request.
Choose a product from the Select Product dropdown. Options include:
1040: U.S. Individual Income Tax Return.
W-2: Shows most line items from the original Form W-2 as filed.
1099: Shows most line items from the original Form 1099 as filed.
1098: Shows most line items from the original Form 1098 as filed.
5498: Shows most line items from the original Form 5498 as filed.
Select the applicable option from the Select Type dropdown. Options include:
Return Transcript: Shows most line items from the original U.S. Individual Income Tax Return as filed, along with any forms and schedules.
Account Transcript: Shows basic data such as filing status, taxable income, and payment types. It also shows changes made after you filed your original return.
Record of Account: Combines the original U.S. Individual Income Tax Return and tax Account Transcripts into one complete transcript.
Select the applicable year(s) under Select Year(s).
Optionally, select Include Income Variance to specify an allowable variance between the borrower’s monthly income in the loan file and the 4506-C transcript.
Optionally, upload a backup signed 4506-C form to help keep your order moving if your applicant does not complete the Borrower Assisted authorization. Providing the form upfront allows it to be used, if needed, without requesting it from you later. Select how the 4506-C was signed: Wet Signed, eSigned, or eVault.
Warning: This workflow demonstrates the Wet Signed option. For eSigned or eVault forms, see Special instructions for 4506-C signing options below.
Click Upload File(s).
Locate and select the completed, wet-signed 4506-C form from your eFolder or local drive, then click Upload.
Confirm the Upload status displays Complete.
Click Done.
From the Select associated borrower(s) dropdown, select the borrower(s) associated with the uploaded 4506-C form.
From the Select transcript request type dropdown, select the transcript request type that matches your order.
Optionally, enter up to two additional email addresses in the Notification Email(s) field to receive order status notifications.
Review the order details, then click Submit to send your 4506-C Borrower Assisted order.
Note: As a best practice, let your applicant(s) know they’ll receive an email with instructions to authorize the release of their tax transcripts and encourage them to complete the authorization promptly.
Special instructions for 4506-C signing options
Select a signing option below to learn more.
Wet Signed documents
For Wet Signed documents only the 4506-C Form is required to be uploaded.
Select the Wet Signed option.
Click on the Upload File(s) button to upload a wet signed 4506-C Form from the eFolder or from your local drive.
eSigned documents
Use the eSigned option when the 4506-C form was electronically signed through a vendor outside of Encompass.
Select eSigned.
Select the applicable eSign vendor.
Click Upload File(s).
Important considerations:
Upload the original eSigned 4506-C form from your local drive. Do not upload the form from the Encompass eFolder because the electronic seal is not retained.
The 4506-C must be the original document provided by the eSign vendor, contain the electronic seal, and remain unaltered.
You can upload multiple documents from your local drive.
For the Audit Log, either:
Upload the 4506-C form and corresponding Audit Log from the eSign vendor, or
Upload the 4506-C form and select the attestation checkbox confirming that you have the Audit Log and will provide it upon request.
eVault documents
Use the eVault option when the 4506-C form was electronically signed within Encompass and is stored in the Encompass eVault.
Select eVault.
Select the applicable eSign vendor.
Click Upload File(s).
Select the 4506-C form with a Source of “ESign.”
Important considerations:
Do not upload the 4506-C form from your eFolder or local drive.
Select the 4506-C form from the Encompass eVault that has a Source of “ESign.”
Follow these steps to submit a 4506-C Borrower Assisted order for personal transcripts on Encompass® Web.
Sign in to Encompass® Web using your credentials.
In your Pipeline, select the appropriate loan from the list.
From the Services menu in the left-hand navigation bar, select All Services.
Click Order Service.
From the Order Service popup, select Verifications in the Categories column, then choose CoreLogic Tax Transcripts in the Providers column.
Click Next to launch the application.
In the Verification Type section, select the Borrower Assisted checkbox.
Select Personal.
Select Individual or Joint based on your order.
Tip: For orders with multiple applicants, choose Individual to create a separate request for each applicant or Joint to create one combined request for a borrower pair.
Confirm the applicable borrower(s) are selected. Clear the checkbox for any borrower you do not want to include in the request.
Choose a product from the Select Product dropdown. Options include:
1040: U.S. Individual Income Tax Return.
W-2: Shows most line items from the original Form W-2 as filed.
1099: Shows most line items from the original Form 1099 as filed.
1098: Shows most line items from the original Form 1098 as filed.
5498: Shows most line items from the original Form 5498 as filed.
Select the applicable option from the Select Type dropdown. Options include:
Return Transcript: Shows most line items from the original U.S. Individual Income Tax Return as filed, along with any forms and schedules.
Account Transcript: Shows basic data such as filing status, taxable income, and payment types. It also shows changes made after you filed your original return.
Record of Account: Combines the original U.S. Individual Income Tax Return and tax Account Transcripts into one complete transcript.
Select the applicable year(s) under Select Year(s).
Optionally, select Include Income Variance to specify an allowable variance between the borrower’s monthly income in the loan file and the 4506-C transcript.
Optionally, upload a backup signed 4506-C form to help keep your order moving if your applicant does not complete the Borrower Assisted authorization. Providing the form upfront allows it to be used, if needed, without requesting it from you later. Select how the 4506-C was signed: Wet Signed, eSigned, or eVault.
Warning: This workflow demonstrates the Wet Signed option. For eSigned or eVault forms, see Special instructions for 4506-C signing options below.
Click Upload File(s).
Locate and select the completed, wet-signed 4506-C form from your eFolder or local drive.
Confirm the Upload status displays Complete.
Click Done.
From the Select associated borrower(s) dropdown, select the borrower(s) associated with the uploaded 4506-C form.
From the Select transcript request type dropdown, select the transcript request type that matches your order.
Optionally, enter up to two additional email addresses in the Notification Email(s) field to receive order status notifications.
Review the order details, then click Submit to send your 4506-C Borrower Assisted order.
Note: As a best practice, let your applicant(s) know they’ll receive an email with instructions to authorize the release of their tax transcripts and encourage them to complete the authorization promptly.
Special instructions for 4506-C signing options
Select a signing option below to learn more.
Wet Signed documents
Select the Wet Signed option.
Click on the Upload File(s) button to upload a wet signed 4506-C Form from the eFolder or from your local drive.
eSigned documents
Use the eSigned option when the 4506-C form was electronically signed through a vendor outside of Encompass.
Select eSigned.
Select the applicable eSign vendor.
Click Upload File(s).
Important considerations:
Upload the original eSigned 4506-C form from your local drive. Do not upload the form from the Encompass eFolder because the electronic seal is not retained.
The 4506-C must be the original document provided by the eSign vendor, contain the electronic seal, and remain unaltered.
You can upload multiple documents from your local drive.
For the Audit Log, either:
Upload the 4506-C form and corresponding Audit Log from the eSign vendor, or
Upload the 4506-C form and select the attestation checkbox confirming that you have the Audit Log and will provide it upon request.
eVault documents
Use the eVault option when the 4506-C form was electronically signed within Encompass and is stored in the Encompass eVault.
Select eVault.
Select the applicable eSign vendor.
Click Upload File(s).
Select the 4506-C form with a Source of “ESign.”
Important considerations:
Do not upload the 4506-C form from your eFolder or local drive.
Select the 4506-C form from the Encompass eVault that has a Source of “ESign.”
Outcome
You can submit a 4506-C Borrower Assisted order to request personal tax transcripts for income verification.