OT Bank lending documentation

[cred65]

S Corp with excellent credit has applied with another bank to refinance existing mortgage (3 yrs old) on commerical real estate. As part of the requested documentation the bank has required the corp to sign form 4506T Request for Transcript of Tax Forms for years 2004,5,6. This was due to the fact that the bank received TARP funds. Anyone else experienced this?

[Cathy]

cred65,

Haven't had the occasion to review the credit app docs for a S Corp, however, it's pretty much standard in Louisiana for taxpayers to sign one of these requests when completing paperwork for home loans.

[BulldogTom]

That sounds like standard practice, even before TARP. I would not worry about it. Most of us signed one of those when we got mortgages on our homes. I know I did.

Tom

Lodi, CA

[TAXBILLY]

This is done to make sure the bank gets the actual return that was filed.

taxbilly

[David1980]

This is done to make sure the bank gets the actual return that was filed.

taxbilly

I'm glad they're doing it. I hate knowing people are preparing fraudulant returns or preparing one return to send to the IRS and another showing much more income to get a loan. In the end it just results in higher interest rates for those not willing to cheat and bailouts for the cheaters...

I had one person last year who wanted a second copy of the return prepared specifically for that purpose so that they could give it to the bank. I wouldn't do it (duh).

[Gail in Virginia]

I am glad they are doing it because I hate having them ask me for a letter for their bank. Their isn't anything I can say in a letter that really means anything - I can say that I prepared a tax return based on the information provided, but that means nothing if you look at what I am saying. I can't say that return was filed (unless I e-filed it), I can't say it wasn't amended, I sure can't guarantee that it was accurate - I have not yet been forced to make my clients prove their returns to me, although I feel more and more like the IRS is leaning on preparers to do that. I would much rather they ask the IRS for this information instead of me.