Posted on: 06th Jul, 2011 03:24 pm
I am scheduled to close on a new home on Friday, July 15th. During the loan application process, it was uncovered that my 2009 electronically filed income tax return was rejected by the IRS because my PIN or AGI was incorrect. I was unaware of this until just two weeks ago. As soon as I became aware, I remitted my return to the local office in-person immediately.
According to my lender, I cannot close on my mortgage until my 2009 return is processed and a transcript be made available. The IRS told me (numerous times -- I keep calling thinking eventually I'll get a different response) it will take 6-8 weeks to process the return and there is nothing that can be done to expedite this process.
I have faxed a letter to the Taxpayer Advocate Director's office in DC and also copied in my representative to the House. (Read: shot in the dark). Both the IRS and an accountant I spoke with said that the copy of my return which I had stamped when I submitted my return in-person to the local office should suffice for underwriting purposes. Lender says not.
The seller is wanting additional earnest money since now it's obvious that we most likely will not be at the table closing next Friday. My lender has said that everyone else looks good -- though he's stop short of giving a provisional approval -- though he said I should know more early next week.
Advice?
According to my lender, I cannot close on my mortgage until my 2009 return is processed and a transcript be made available. The IRS told me (numerous times -- I keep calling thinking eventually I'll get a different response) it will take 6-8 weeks to process the return and there is nothing that can be done to expedite this process.
I have faxed a letter to the Taxpayer Advocate Director's office in DC and also copied in my representative to the House. (Read: shot in the dark). Both the IRS and an accountant I spoke with said that the copy of my return which I had stamped when I submitted my return in-person to the local office should suffice for underwriting purposes. Lender says not.
The seller is wanting additional earnest money since now it's obvious that we most likely will not be at the table closing next Friday. My lender has said that everyone else looks good -- though he's stop short of giving a provisional approval -- though he said I should know more early next week.
Advice?
Each and every lender will need to pull your transcripts to verify your tax returns are what the IRS has on file. The 4506T is the form that gets sent to the IRS and they return your transcript. Without the completed results from the 4506T, you are stuck. Your seller should understand and extend the COE, since your loan is already approved, and you have a minor condition to satisfy. Good luck
Thanks for your reply Chris. Are you aware of a way to expedite the processing of the return? If only the federal government were as efficient as public sector businesses. 6 weeks to process a dozen numbers seems incredible to me.
I have heard of others doing what you have done and keep calling. All they have to do is enter in the information on their system. Keep trying. Thats all you can do.