PRMG’s 4506-T Broker Ordering Option · · 2016-10-18PRMG’s 4506-T Broker Ordering Option...

PRMG’s 4506-T Broker Ordering Option of 3 Revised 10/17/16

PRMG’s 4506-T Broker Ordering Option

All brokers are now able to sign up with Equifax’s Rapid Reporting service which will permit the broker to order a 4506-T in PRMG’s name. This service provides the opportunity for the 4506-T to be ordered earlier in the loan process, helping to eliminate delays based on 4506-T results and thereby expediting loan closings. PRMG and Rapid Reporting/Equifax worked together to develop an automated ordering process where the results from an order the broker submits would be available for PRMG’s review and clearance. The cost of the 4506-T can be passed on to the borrower, but must be disclosed in the “Services the borrower cannot shop for” section of the Loan Estimate. Tax transcript pricing breakdown is as follows:

$9 Equifax fee per form type ordered and $2 IRS fee per form type or year ordered o Example 1: If you order a 2014 and 2015 1040, because you’ve just ordered one form

TYPE, that’s $9 for the Equifax fee plus $2 IRS fee per year ($4 for both years)= $13 o Example 2: If you order a 2015 W-2, you’ve just ordered one form so that’s $9 for the

Equifax fee plus $2 for the one year you’ve ordered= $11 o Example 3: If you order a 2015 W-2 and a 2015 1040, you’ve ordered two form types so

that’s $9 X 2 for Equifax fees plus $2 X 2 years ordered for the IRS fees ($9 + $9 + $2 + $2= $24)

Please follow the steps below to get signed up for the PRMG Broker Network and familiarize yourself with the process of getting your own Tax Transcript results back faster and easier. Please note, when using this service, it is important to ensure the correct transcript type is ordered. If the W2 transcript option is being used, only the W2 transcripts should be ordered. If full 1040 transcripts are ordered, then the information from those transcripts (i.e., 2106 expenses) must be included in the income calculation, unless the loan program specifically allows for 2106 expenses to be disregarded. HOW TO GET SET-UP

Visit http://www.theworknumber.com/brokerapplicationforservice/ and submit a request to join the PRMG Broker Network.

Please note when you visit the Equifax link to sign up, you will need to provide a Lender ID. You can just enter your NMLS ID or use 12345 as PRMG is not requiring this info be provided.

Once you have submitted all of the required information, Equifax will provide you with the contract documents needed to get set-up as a broker client; you will receive an e-mail invitation to electronically sign the contract documents and once those documents are complete, Equifax will reach out with more information. It usually takes 2-4 business days for Equifax to implement your account. Please note the IRS average processing timeline for orders is approximately 3-4 business days.

http://www.theworknumber.com/brokerapplicationforservice/


PRMG’S UW PROCESS FOR RAPID REPORTING/EQUIFAX’S 4506-T RESULTS

When ordering through Equifax, you will indicate on your order that it is being placed under the PRMG Broker Network.

The PRMG loan number must be entered in order to allow the completed results to be pulled by PRMG.

Order Return Transcripts (6a), Record of Account (6c) or Form W-2 (8) only. PRMG does not allow Account Transcripts (6b). If there is a balance owed to the IRS on the borrower’s tax returns, order Record of Account (6c) as this will ensure PRMG receives both the transcripts and proof of taxes paid.

Indicate on the PRMG submission form that tax transcripts will be ordered by broker by marking “Yes”.


YOUR EQUIFAX SUPPORT TEAM

Please review the below Equifax resource guide to view contact information for the various groups who will support your account with Equifax. This tool serves as a guide for directing IRS Income questions and/or issues to the appropriate parties within Equifax. Please follow this guide to ensure your questions or issues are addressed appropriately.

Broker Network Onboarding and Enrollment

User Setup to Place Orders (please note this generally takes 3-4 business days)

To sign up:


For questions: [email protected]

Onboarding and Order Information

Assistance Placing an Order Contact the Client Service Team

E-mail: [email protected] Phone: 1-888-479-4411

Hours: 7AM- 8PM CST Checking Order Status

Difficulty Locating/Interpreting Status Update

Completing the Form 4506-T

Unsure of Guidelines Contact the Client Service Team or refer to the attached 4506-T Guide Unsure of Required Fields and Dates

Fees and Invoices

Inquiries about additional fees charged Contact the Client Service Team

Billing/Invoice Questions Contact The Work Number Billing

E-mail: [email protected]

Broker Path of Escalation

If an issue requires escalation after the proper path of assistance was followed, please have your PRMG Account Executive contact the appropriate representative.

PRMG Broker Network Resources

Equifax and EFX are registered trademarks of Equifax, Inc. Inform>Enrich>Empower is a trademark of Equifax, Inc. © 2012 Equifax Workforce Solutions, a/k/a TALX Corporation, a wholly owned subsidiary of Equifax Inc., Atlanta, Georgia. All rights reserved.


mailto:[email protected]



Revised 03/30/2016

Instructions for Completing a 4506-T

NOTE: Please complete all sections of this form. If this form is illegible, it will be rejected by the IRS.

Required to be in this format

If applicable, include W2, 1099, etc.

Section dated as appropriate

• Date within 30 days. • Up to 120 days allowable. • Use most recent as possible.

Sign in BLACK ink only. Signature must be legible.

For business transcripts, must add title.

Co-Borrower to sign here (as applicable) Please use BLACK ink only.

Must check attestation for form to be processed by IRS

Check box 6A, 6C, or 8 (as appropriate-only select the required option, not all)

Revised 03/30/2016

Instructions for Completing a 4506-T

© Equifax Confidential and Proprietary

ORDERING TAX TRANSCRIPTS

WITH EQUIFAX

1

Revised 10/17/16

Confidential and Proprietary

What do I order on behalf of the lender?

PRMG Ordering Requirements Order Return Transcripts (6a), Record of Account (6c) or Form W-2 (8) only

If there is a balance owed to the IRS on the borrower’s tax returns, order Record of Account (6c) as this

will ensure PRMG receives both the transcripts and proof of taxes paid.

Important, PRMG does not allow Account Transcripts (6b).

Order 1040s or W2 transcripts – one or two years based on Product Profile requirements

2


What do I order on behalf of the lender?

PRMG Ordering Requirements (continued)

If the applicant/borrowers are married and file jointly

– Only enter one of the borrowers during order entry, but include both names on the 4506-T for faster

IRS processing.

If the applicant/borrower is unmarried and files single

– Order one 1040 or W2

– The 4506T form needs to be signed and dated by the applicant

If two applicants/borrowers are not married and filing status is unknown

– Order one 1040 or W2 for each applicant/borrower

– Use separate signed and dated 4506T forms

If the applicants have recently married but filed separately for the year(s) you are ordering

– Order one 1040 or W2 for each applicant/borrower

– Use separate signed and dated 4506T forms

3


How to login to The Work Number®

Go to http://www.theworknumber.com/go/

http://www.theworknumber.com/go/


Login – enter your username

Once you’ve been granted access to

the service, you’ll receive two e-mails

with your credentials from

[email protected].



Login – enter your password

Confidential and Proprietary 7

Getting to the IRS Income Verification Service


Using the Home tab

You can do a Quick Search to view

any order by entering an SSN.

Quick Links provide fast access to

Create, View, and Search for orders.

The Bulletins section provides

updates and important information

from the IRS and Equifax.

You can call or e-mail Customer

Service between 7am and 7pm CST.

Verifier


Entering Order Information

Enter the order type and the

Borrower’s Information

Verifier

To have us send the

4506-T for eSignature to

your client for free, click

this radio button.

Or, if you want to upload

a wet signed 4506-T,

select “No” and attach

the 4506-T later.


Dramatically reduce rejection rates by allowing

Equifax to auto-populate the 4506-T.

We have the form requirements down to a science

and can prevent most rejection types!

Completely remove yourself from having to deal

with the 4506-T- you enter the order information,

and we do the rest at no additional cost!

Provide a better borrower experience

Remove the hassle of getting a wet signature and let

the borrower quickly and easily electronically sign the

4506-T.

– See slides 12-19 to view the borrower experience.

Why Use Equifax eSignature


Enter information for the 4506-T Form

Click the eSignature box and enter

the e-mail address where you’d like

the form to be sent for signature.

Finally, select the forms and years that you need

from the available options (only 1040 is shown

here, but you can also request a W-2, 1099, 1040

Stated, 1040 Account, 1040 Record of Account,

or K1 form).

Verifier

Next, enter the borrower’s address

associated with their most recent tax

filing.


Adding an Order

Once you have selected all the forms

and years you need, click “Add Order.”

Verifier


Submitting an Order

After submitting your orders,

you will be taken to the “View

Unsubmitted Orders” tab.

Verifier

If you have obtained a wet signed

4506-T, select Attach to browse and

add the required 4506-T.


If you are having the borrower eSign the 4506-T with your own eSignature vendor, ensure they are on our below approved list. If your vendor is not on this list, reach out to [email protected] with contact information at your vendor to begin the vendor approval process.

Using Your Own eSignature Vendor for the 4506-T

• a la mode

• Accenture/ Encomia

• AssureSign

• AuthentiSign/ Instanet Solutions

• Biz2Sign

• Call Universal

• CIC

• ConformX- DocuTech

• DocMagic

• Docu Prep

• DocuSign

• EchoSign- Adobe

• eSignOnline/ GoPaperless Solutions

• eLynx

• Encompass360

• eOriginal

• eSignSystems- Wave

• IDS

• MRG

• SIGNix

• Silanis

• Wolters Kluwer



BORROWER EXPERIENCE-

EQUIFAX ESIGNATURE PROCESS


eSignature - Invitation E-mail

16

Applicant

Access Code instructions

The invitation e-mail includes the

applicant’s name, Processor’s name,

and a reference to their application

number.


Entering the eSignature InterfaceApplicant


Entering the eSignature Interface

The system will guide the applicant

through reviewing and signing the

document.

Applicant


Entering a Secondary Address

Encourage applicants to enter a

previous address to reduce IRS

rejections.

Applicant


Adopt and Sign

The applicant will add the signature

as shown here.

Applicant


Confirm Signing

Once they have reviewed and

electronically signed the document,

the applicant will click “Confirm

Signing.”

Applicant


Confirmation E-mail

The applicant will receive a

confirmation e-mail.

Applicant


View Submitted Orders Tab

Click the green icon to view your

completed verification.

Once your order is complete, you will

receive an e-mail that will direct you

back to the Submitted Orders tab.

Verifier

To view order notes and history, or to

place a ‘reorder,’ click the hyperlinked

status.


Reviewing your Taxpayer Summary ReportThe first page is the Taxpayer Summary Report page. Taxpayer Summaries are provided for each form type ordered.

The most important information is summarized here.

The full tax transcript will follow the summary page.

Order details are provided in the header.


Transcript ViewForms are provided in a searchable PDF document so there is no need to look line by line.


SETTING UP YOUR PREFERENCES


My Settings Tab – Setting Preferences

Make sure your

notifications are enabled

so that you receive email

notifications.

Select one or multiple

people within your

organization to receive

copies of your order

notifications when you

are on vacation or out of

the office.


REDUCING REJECTIONS

28


You may see two types of rejections:

Equifax Rejections from our Quality Assurance

Check

Equifax audits 100% of orders within 15 minutes

before submitting the orders to the IRS to prevent

unnecessary IRS rejections so you don’t have to wait

three days to find out the order was rejected and

have to resubmit.

IRS Rejections

If an order is rejected, you will receive an email

notifying you. You will need to correct the issue

and reply with updated information or a 4506-T.

Rejected Orders


Attestation Box Not Checked

Missing or Illegible Field

Conflicting Order Data (Name/ SSN entered with order doesn’t match 4506-T)

No IRS Consent Form Submitted

Date Signed: Missing, Invalid, or Expired (must be within 120 days of order submission)

Top Equifax Rejection ReasonsVerifier


“Limitations” Rejection Reason 10

Incorrect Data (address, SSN, etc.)

Altered Documents

Illegibility

Top IRS Rejection Reasons


Rejection Reason: “Due to limitations, the IRS

cannot process the request, taxpayer will receive a

mailed notice. If any questions, please call the IRS

Customer Service at 800-829-1040.”

Used for potential past and current cases of identity

fraud on the borrower’s tax account.

Have the borrower call the IRS Identity Protection

Security Unit directly at 1-800-980-4490 to remove

identity fraud flag so the order can be replaced once the

flag has been removed.

Limitations Rejections


ADDRESS

• The address entered on line 3 of the Form 4506-T should be the addressed used for the borrower’s most recent tax filing.

• Because the IRS will reject any orders with an address of record on Line 3 which does not match their records, if the borrower has narrowed it down to two addresses, have them enter one on Line 3 and the other on Line 4 (previous address); if either address matches what the IRS has on file, they will fulfill the order. As a best practice, always have borrowers provide a secondary address.

• Otherwise, as a best practice you should have the borrower call the IRS to validate their address if they are unsure. Please advise the borrower to call 1-800-829-1040 and follow the prompts to speak with an agent. Then they'll just need to ask the agent to look up their address of record. The agent will ask the borrower a series of identity verification questions before providing the IRS address of record that can be used on the 4506-T.

• Please note if the borrower changes their address while on the phone with the IRS, it can take up to six weeks for the new address to appear in their system and could result in a rejection in the meantime.

How to Reduce Address Rejections


Acceptable Business Titles

Business Titles/Revised: 06/02/2015

Corporations 1120 / 1120S/ 990 /

941– Chief Officers (ie:

CEO, CFO, COO, etc)

– Controller

– Managing Member

– Owner

– President

– Secretary

– Shareholder

– Sole Proprietor

– Treasurer/Assistant Treasurer

– Vice-President

Partnerships

– 1065 / 1065 LLC /

1065 LP or LLP

Limited Partner

Partner

Estates and Trusts

– 1041

Administrator

Beneficiary

Executor

Heir at Law

Next of Kin

Personal

Representative

Trustee


Filling Out a Personal Form 4506-T

Taxpayer’s Name

Joint Taxpayer’s Name

Enter Form Type – 1040,

W-2 or 1099

Enter Years Requested-

you can just enter the

year after the last slash-

ie “2013.”

Taxpayer Signature

Taxpayer’s SSN

Joint Taxpayer’s SSN

Secondary address (if

either matches, the IRS

will fufill the request).

Check box if requesting

1040

Check box if requesting

W-2 or 1099

Date within 120 days

Address associated with

most recent tax filing.


Filling Out a Business Form 4506-T

Business Name

Enter Form Type –

1065 or 1120

Enter Fiscal Years Requested

End of Year Format (12/31/xx)

Signature

Business EIN

Secondary address

Check this box.

Date within 120 days

Address associated

with most recent tax

filing.

Title


Report Descriptions

Business Name Business EIN

Current Address

Previous Address

Check this box

Enter Form Type – 1065 or 1120

Enter Fiscal Years Requested

Signature Date within 60 days

Title

Form Type Description How to Complete the 4506T Select Form Type:

1040 For personal tax transcripts. • 1040 printed on line 6.

• Box 6a checked.

1040

1040 Record of Account Combined line item information, record of taxes owed , and any

amendments made to the original return. The form will also list

financial status of the account and include the original tax return.

•1040 Record of Account printed on line 6.

•Box 6c checked.

1040

1040 Account Transcript Verify the financial status of an account, such as payments,

penalties and adjustments made by the taxpayer or the IRS after a

return was filed. Return information is limited to items such as tax

liability and estimated tax payments.

•1040 Account Transcript printed on line 6.

•Box 6b checked.

1040

W2 Information on employer reported earnings and withholding data. •W2 printed on line 6.

•Box 8 checked.

W2

1099 Payments made to an individual or company for services provided. •1099 printed on line 6.

•Box 8 checked.

1099

1065 or 1065 LLC For corporate or business tax transcripts. •1065 or 1065 LLC printed on line 6.

•Box 6a checked.

•Title must include one of the following:

•Member, Manager, Partner, Owner, and Member-

Manager for 1065 LLC

1065

K-1 To obtain a beneficiaries share of income, deductions, credits and

other items from certain trusts or partnerships.

•K-1 printed on line 6.

•Box 8 checked.

1065

1120 or 1120S For corporate, S corporation, or business tax transcripts. •1120 or 1120S printed on line 6.

•Box 6a checked.

•Title must include one of the following:

President, Vice President, CEO, CFO, COO, CAO,

Treasurer, Assistant Treasurer, Secretary, Any other

corporate officer authorized to sign, Owner for

1120S only.

1120

Stated Doc Confirmation of filing for specific years, and existence of Schedule C

and/or Schedule E.

1040 Stated Transcript

Stated Doc – Proof of Filing

Stated Income Confirmation of filing for specific years, and existence of Schedule C

and/or Schedule E with a minimal income level stating the borrower

reported income greater than or equal to $XXXXX.XX.

1040 Stated Transcript

Stated Income

AGI/Total Income


For general service or order-related questions:

• Email: [email protected]

• Phone: 1-888-749-4411

• Hours of Operation: 7AM – 7PM CST

If you need to escalate an issue or have a

complex issue, ask to speak with a supervisor.

Equifax Tax Transcripts Support Team



• When ordering through Equifax, you will indicate

on your order that it is being placed under the

PRMG Broker Network.

• The PRMG loan number must be entered in

order to allow the completed results to be pulled

by PRMG.

• Indicate on the PRMG submission form that tax

transcripts will be ordered by broker by marking

“Yes”.

Additional PRMG Requirements

PRMG’s 4506-T Broker Ordering Option · · 2016-10-18PRMG’s 4506-T Broker Ordering Option...

Documents

Transcript of PRMG’s 4506-T Broker Ordering Option · · 2016-10-18PRMG’s 4506-T Broker Ordering Option...