Impacts of the New IRS 4506-C Form [May 2022]
Updated October 5, 2022
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.
In June, the IRS released a draft of the new IRS form 4506-C in preparation of a new OCR component, which is a part of the IRS modernization effort to fulfill transcript requests. This will bring much needed automation advances to their current manual process, drastically improving response time to the industry’s transcript needs. The launch date is tentatively scheduled for mid-October, and have a mandatory use date of Decmeber 1, 2022, or later.
➤ Click here to download the draft 4506-C form.
For our customers using document technology, recreated forms must comply with this schema published by the IRS.
➤ Click here to download the schema 4506-C form.
The IRS will not permit any editing on the new 4506-C form and must be filled out as intended. NCS will send out updates as additional information becomes available.
1. Signatures are required for any taxpayer listed. Only list a spouse if their own transcripts will be requested and they will be signing the request. Forms with missing signatures will be rejected.
2. The Unique Identifier has been added to the form. This is an optional field with specific criteria. See the instructions for more information.
3. Client information for Lines 5d is required. IVES Participants that collect transcripts for their own use will list their company information here. IVES Participants that collect transcripts for another company’s use (the client model), will list the customer company information here. 5. Forms with missing Client information will be rejected.
4. Line 6, “Transcript requested,” is only for ordering tax return transcripts and should only list the tax form number that was filed. Forms with multiple tax forms listed will be rejected.
Line 7, “Wage and Income transcripts,” only require the checkbox to be marked and all forms will be provided for all listed taxpayers. This request can be limited to specific form types and taxpayers by filling in line 7a for up to three forms and marking the appropriate check box in line 7b.
- Any entries in Line 7a such as NA or Not Applicable, will be read as an entry by the OCR software. If you wish to receive all forms, leave this section blank.
- Wage and Income transcripts are charged based off the form type and number of taxpayers per year requested. Listing three Wage and Income forms on line 7a and listing two taxpayers will incur six charges per year requested.
5. Taxpayers listed on Line 1a and 2a are required to complete their assigned signature section. Forms with missing signatures or required signature information will be rejected.
6. Authorized Representatives signing for the taxpayer(s) listed on Line 1a and/or 2a are required to check the “Form 4506-C was signed by an Authorized Representative” box. See instructions for more information on an Authorized Representative. Forms signed by an Authorized Representative without this box marked will be rejected.
7. Taxpayers that sign electronically are required to check the “Signatory confirms document was electronically signed” box. Forms signed with an electronic signature without this box marked will be rejected.
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