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The IRS frequently rejects Form 4506-C when fields are altered, highlighted, misaligned, or contain data entered outside their designated boxes. Checking multiple transcript boxes on line 6, using incorrect date or SSN formats, or mixing transcript types on a single form will also cause rejects. Electronic signatures must include the correct e-sign indicator, and all required signatures must be present and dated. Easy Verification performs pre-flight quality checks to help lenders avoid these common IRS rejections.
A single Form 4506-C can request only one transcript type, such as an individual 1040 transcript or Wage and Income documents like W-2s and 1099s. Business transcripts such as 1120 or 1065 require separate forms and cannot be combined with individual requests. Up to four years or periods may be listed on a single 4506-C, depending on IRS availability for the chosen product. Providing accurate form type and transcript years helps ensure successful IRS processing.

How is IRS Form 4506-C processed for income verification?

After a borrower signs IRS Form 4506-C, the lender or its IVES provider submits the form to the IRS. The IRS first checks that the form is readable, complete, properly signed, and that the taxpayer information matches what is on file.

Once the request passes these checks, the IRS retrieves the requested transcript, such as a Return Transcript or Wage and Income Transcript, and delivers it back through the IVES system. The lender then compares the transcript to the borrower's stated income as part of underwriting or quality control.

How can lenders reduce IRS Form 4506-C rejects and delays?

Lenders can reduce 4506-C rejects by making sure every required field is filled in, the transcript product and tax years are clearly indicated, and the taxpayer names and tax identification numbers match IRS records. The form should be signed and dated correctly, with only one transcript type per request.

Working with an experienced IVES provider, such as Easy Verification, adds an extra layer of quality control. We run pre-submission checks to catch common errors before the form reaches the IRS, helping lenders avoid avoidable rejects and shorten turnaround times.

Secure IRS 4506-C tax transcript fulfillment environment
Official IRS IVES Participant

Secure 4506-C Fulfillment
Simplified.

Accelerate loan origination with a trusted IRS tax transcript provider. Easy Verification has delivered accuracy, compliance, and speed since 2006.

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Sample IRS Form 4506-C partially filled out for Easy Verification

4506-C Ready

Status: Accepted

Since 2006

AUTHORIZED IVES PROVIDER

Bank-Grade

Security Standards

Millions

Transcripts Processed

Fast Turnaround

Direct IRS Link

The 4506-C Fulfillment Workflow

Our direct integration with the IRS IVES program ensures the fastest possible turnaround times for income verification.

Secure 4506-C workflow diagram

Transcript Verified

Status: Complete

1

Request Initiation

Initiate a 4506-C request via your secure platform for borrower signature. Approve transmit to our portal or API. Enter the borrower’s data exactly as it appears on their tax returns to minimize rejection rates.

2

Submit, E-Signature & Consent

We accept compliant e-signatures with an audit trail and traditional wet-signed forms. Our system validates each 4506-C for completeness before submission.

3

Direct IRS Submission

As an authorized IVES participant, we transmit data directly to the IRS via a secure, encrypted tunnel, bypassing mail delays and manual handling.

Secure Delivery

Receive official tax transcripts (1040, W-2, 1120, etc.) as soon as the IRS releases them. Available in PDF and XML formats for easy ingestion.

Transparency at Every Step

Eliminate guessing about file status. From initial submission to final IRS release, our platform provides complete, real-time visibility and status update notifications into every 4506-C order.

Real-Time Dashboards

Monitor volume, turnaround times, and success rates in a single view.

Detailed Audit Trails

Every action is logged with timestamps and user IDs to support compliance.

Proactive Notifications

Alerts the moment a status changes or an issue needs attention.

Flexible Delivery Options

Secure download (PDF) or automatic push to your API endpoint when the IRS releases data.

Easy Verification dashboard transparency example

Avg Turnaround

21h -12%

The Easy Verification Solution

Replace legacy IVES dependency with a single-source platform that delivers verified income at the speed of business.

Choose Your Speed & Volume

Legacy

Standard Avg Turnaround 48–72 Hours

Cost-effective, standard verification for non-urgent requests where budget optimization is the primary driver.

Instant Same Day

Instant Same-Day Avg Turnaround 1–4 Hours

The fastest option for critical lending decision. Direct web portal or integration minimizes latency for transcript retrieval. Borrower driven authorization. Near real time results.

API & Bulk

Scalable Automation

Integrate our IVES capabilities directly into your Loan Origination System or internal workflows for massive scale.

Comprehensive Tax Transcript Fulfillment

We cover the full spectrum of IRS tax forms required for underwriting, compliance, and verification across individual and business Tax Returns.

Personal Tax Returns

Income verification documents required for mortgage, auto, personal loans, and background screening.

1040s (Individual, Married Filing Joint, Married Filing Single)

Available transcripts: Return, Account, Record of Account.

  • W-2 (Wages under the social security number)
  • 1099 (Independent contractor Income, interest, dividends,
    mortgage interest, K1s, etc.)
  • ALL FORMS (Combined reported Wages, Income, interest, dividend, 1098 mortgage etc.

Business Tax Returns

Used for commercial lending, partnership due diligence, and verification of business income for key principals.

1120, 1120S, 1065, 1041

Available transcripts: Return, Account, Record of Account.

  • 94X (Employer's Quarterly Federal Tax Return)
  • 990 (Exempt Organization Return)

Understanding Transcript Types

Return Transcript

Shows most line items from the original return (1040, 1120, etc.) and is often sufficient for underwriting.

Account Transcript

Shows basic data, return status, tax balance, payments, and adjustments to the account.

Record of Account

Combines Return and Account transcript data, providing the most complete picture.

Mastering Form 4506-C & Quality Control

Take control of transcript turn times, slash rejections, and keep your QC team smiling.

Master the 4506‑C in 5 Minutes

Step‑by‑step checklist, lender‑ready tips, and real‑world pro moves to get every 4506‑C right the first time.

  • Correct taxpayer name/TIN
  • Match addresses to return
  • Enter exact tax years

Open Cheat Sheet

How to Avoid 4506‑C Rejections

Side‑by‑side “right vs. wrong” examples so your team can spot and fix errors before the IRS does.

  • Top reject reasons by form section
  • OCR-sensitive issues (overlaps, borders, handwriting)
  • Side-by-side visual examples

Open Reject Guide

Tailored for Your Industry

Income verification requirements change by sector. We adapt fulfillment and delivery to match your compliance and workflow needs.

Mortgage and SBA/Commercial Lending

In mortgage lending, speed and accuracy are paramount. We deliver IRS 1040, W-2, and 1099 transcripts directly to underwriters with a comprehensive audit trail, helping you meet TRID and internal deadlines faster.

  • Direct API connection to your LOS platforms support.
  • Priority processing for time-sensitive closings.
  • Support for all required tax forms (4506-C, 1040, Wage & Income, 1120, 1065).

Financial Advisors & Independent Brokers

Quickly verify client income for pre-qualification or financial planning without relying on self-reported documents. Our platform simplifies consent and accelerates the path to a loan commitment.

  • Mobile-friendly e-signature workflow for clients.
  • Low-volume, pay-per-request pricing available.
  • Dedicated dashboard for individual client requests.

Public Sector & Compliance

For federal, state, and local agencies requiring taxpayer verification for benefits, housing, or grants, our platform guarantees maximum security and strict adherence to IRS IVES standards.

  • Strong encryption and security controls aligned to FISMA-style expectations.
  • Batch processing and bulk submission tools.
  • Detailed compliance reporting for internal and external audits.

Self-Service & Personal Use

While we primarily serve institutions, individuals can consent to release their own tax transcripts to Easy Verification, IVES certified to obtain a copy for personal records through ID.me & IRS Account and deliver directly to your lender. Lender must be Easy Verification certified.

  • Clear, step-by-step authorization process.
  • Secure, one-time document delivery direct to your lender.
  • Access to the same direct IRS link used by major lenders.

Common Questions, Clear Answers

Key details about 4506-C compliance, security, and partnering with Easy Verification.

Form 4506-C authorizes a third party to request IRS tax transcripts to verify income for underwriting and loan decisions. It is the required form for all authorized IVES participants.

We maintain a direct IRS connection and secure transmission channels. Transcripts are time-bound and permanently deleted after expiry per IRS guidelines. We never resell data, enforce strict access controls, operate under SOC/ISO-level controls, and maintain a full e-sign audit trail.

We use straightforward transaction-based pricing with no volume lock-ins. This enables faster turn times and significantly reduced compliance risk for lenders and brokers of all sizes.

Turn times depend on IRS processing and transcript type, but we deliver as soon as the IRS releases the transcripts. For Same Day – within minutes after taxpayer’s authorization. For Legacy – generally within a couple of business days. Easy Verification also supports re-verification within 120 days of the original signature date.

Yes. We accept e-signed 4506-C forms that comply with IRS e-signature guidelines and include a complete audit trail. We also handle retention of signed documents as required for IRS compliance.

Ready to Partner with the Best?

Choose Easy Verification, a long-time IVES-certified 4506-C third-party provider. Strengthen your position with a secure IRS tax transcript partner. Eliminate risk, accelerate approvals, and maximize efficiency.

Start Your Secure Partnership

Millions of transcripts processed securely since 2000.