Form 4506: Request for Copy of Tax Return - Purpose, Filing Instructions, and Practical Use

Form 4506, provided by the IRS, allows individuals and organizations to request exact copies of prior years' tax returns for various purposes including verification of income and complying with legal requirements. Learn about its significance, how to file it effectively, and its practical applications.

What is Form 4506?

Form 4506 is an official document provided by the Internal Revenue Service (IRS) that individuals and organizations use to request exact copies of previously filed tax returns. This form is essential for various financial and legal processes, such as income verification for loan applications, tax audits, and compliance with legal requirements.

Importance of Form 4506

Form 4506 plays a crucial role for:

• Verifying Income: Often required by banks and financial institutions when applying for mortgages or loans.
• Legal Compliance: Necessary for legal proceedings, audits, and disputes concerning tax obligations.
• Record Keeping: Ensures individuals and businesses have accurate records of their financial history.

Detailed Instructions for Filing

How to Obtain Form 4506

You can download Form 4506 from the IRS website or obtain it from your local IRS office. It’s also possible to request the form by calling the IRS customer service number.

Completing Form 4506

To complete Form 4506, you will need:

• Personal Information: Full name, Social Security number, and current address.
• Tax Return Details: Specify the type of tax return (1040, 1120, etc.) and the years requested.
• Signature and Date: The form must be signed and dated for the request to be valid.

Filing Form 4506

• Mailing Address: The completed form should be mailed to the appropriate IRS office, which varies based on your location and the type of tax return requested.
• Fees: There is a fee for each copy of a tax return, which must be included with your application.

Practical Use Cases

Examples

• Mortgage Applications: Lenders often require a copy of prior years’ tax returns to verify income.
• Tax Audits: Individuals and businesses might need to provide exact copies to resolve discrepancies.
• Scholarly Research: Historical tax data can be essential for economic research and analysis.

Historical Context

Form 4506 has evolved over the years to accommodate changes in tax laws and regulations. Initially, it covered fewer forms and years, but now it includes a broader range of tax documents and specific annual requests.

Comparisons with Related Forms

Form 4506-T

• Purpose: Unlike Form 4506, which requests full copies, Form 4506-T requests a tax return transcript, which is a summary and often sufficient for many needs.
• Fee: Form 4506-T is typically free of charge.

Form 8821

• Purpose: This form authorizes third parties to access your tax information.
• Usage: Commonly used by tax professionals and accountants.

FAQs

How long does it take to process Form 4506?

Processing can take up to 75 days due to high volumes and detailed verification processes.

Can I expedite my request?

No, the IRS does not offer expedited processing for Form 4506 requests.

What if I made an error on my Form 4506?

You should fill out a new form correctly and resubmit it. Ensure all details are accurate to avoid delays.

References

• IRS Official Website: Form 4506
• Tax Information for Individuals: IRS Tax Center
• Publication 766 (Taxpayer Identification Number): IRS Guide

Summary

Form 4506 is a vital tool for obtaining exact copies of prior years’ tax returns. Essential for income verification, legal compliance, and thorough record-keeping, understanding its correct usage and filing process is crucial. This form serves as a bridge between taxpayers and the IRS, ensuring transparency and accuracy in tax matters.