Personal Taxes

Buying a home? Last two tax returns usually required.

One of the most common catalysts for getting into "compliance" with the IRS is buying a home. Mortgage lenders usually require you providing your last two tax returns and proof that they have been filed. If you have created a deadline to buy your home, getting proof of filing can be a "race." It takes time for the IRS to process returns when they are filed manually and with the e-filing season over until February, that's the only way to file in the winter. So, after the returns are filed, we at WATAX will check daily or weekly as needed at IRS e-services to see if your returns have posted. When they have posted, a transcript can be provided to you and your lender.

What if you haven't filed eight years and the lender wants to only see two years? Well if you have refunds or are able to pay the taxes due, you should be fine. You might consider filing more returns - one to four years back - after the deadline has passed. But if you owe taxes for the two years and can't pay them relatively soon, an analysis of filing your other years might also include a plan to look at doing a settlement with the IRS or a payment plan if you don't qualify for a settlement.

Is 2024 the year to solve your tax issue? WATAX is ready to assist you now. Please call us at 1-888-282-4697 or email us a description of your tax issue and we'll contact you promptly.

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