Important IRS 4506-C Form Updates

IRS Delay for 4506-C Form Update

Originally published September 17, 2021 | [Updated December 16, 2021]

At NCS, our goal is to keep you informed of these notifications and advise how they impact your ordering process for tax transcript information. We continue to advocate on your behalf to the IRS through the IRS Working Group and industry counterparts. All notifications from the IRS IVES program reside on our customer landing page for future reference.



UPDATE: The IRS has delayed the deployment of the OCR implementation for Form 4506-C to January 17, 2022. NCS will also delay the deployment of their system changes to meet the IRS requirements.

Per the latest announcement from the IRS regarding their current efforts of modernization as required in the Taxpayer First Act, here are some critical dates to remember:
  • October 1, 2021 -- the initial start date for OCR
  • January 1, 2022 -- date the IRS modernization efforts goes live [cancelled]
  • January 17, 2022 -- new deployment date for Form 4506-C with OCR implementation

*NCS will continue to annotate the 4506-C Form for our clients through February 28, 2022. 

You will notice minor UI changes for ordering products and new requirements. For example, if you order 1040s and W2s, you will be presented with a new form upload requirement and tool tip for the W2 order. 

Reminder: To get W2s as of March 1, 2022, the form needs to list W2 on line 6 and only 1 product can be on line 6.


Please read the below information and the IRS IVES notification as this will impact your 4506-C ordering process and fees you will be charged by the IRS.

The IRS IVES team states the first step in modernization includes Optical Character Recognition (OCR) software to process your FORM 4506-C requests.  Here are the key takeaways:

1.     “Be clear of any editing marks.” The Form 4506-C should not display any edits or multiple forms.

  • If the Form 4506-C includes edits, the form will not pass OCR.  It will be processed using existing manual IVES protocol following a longer processing timeframe.  As well, standard IRS rejections will apply. After January 17, 2022 IRS rejections may increase for “edited” forms and incur extended processing timeframes.
2.     Only identify the transcripts, tax years, and/or taxpayers that need to be processed.”  The clean form should only display the details and checkbox for the transcript, tax years, and/or taxpayer you are requesting versus multiple transcript types

  • Line 6 should contain a single transcript request only such as 1040
  • A single checkbox should be selected to match Line 6
  • Line 8 should display only the years you are requesting

3. List the data on the assigned lines.”  Same as above.

  • Line 6 should contain a single transcript request only such as 1040
  • A single checkbox should be selected to match Line 6
  • Line 8 should display only the years you are requesting

NCS primary concern is ensuring that our TRV® Services customers have the most recent and up-to-date information from the IRS to make their lending decisions. We will always operate with that in mind.


For more information on the IRS website, click here.

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