While the IRS remains closed during the partial government shutdown, the agency recognizes the immediate hardship incurred if information is not available through the Income Verification Express Service (IVES) program as well as by taxpayers who have been unable to certify their residency in the United States for certain tax treaty benefits or by those who have been unable to obtain photocopies of tax returns.
Following an extensive review, the IRS began processing requests on Jan. 7 for transcript information made through the Income Verification Express Service (IVES) program. IVES is a user fee-based program used primarily by mortgage lenders and others within the financial community to confirm the income of a borrower during the processing of a loan application. The transcript information is delivered to a secure mailbox based on information received from a Form 4506-T or Form 4506T-EZ.
It will take time to bring this service up to normal operating status. The IRS advises IVES participants that it may initially take longer than the standard 72-hour turnaround time for the IRS to process these requests. This is due to employees being brought back to work to begin processing backlogged requests since the funding lapse began on Dec. 22.
The IRS also will start other user fee-based services such as providing a letter needed by some taxpayers to certify their residency in the United States for certain tax treaty benefits and responding to requests for photocopies of tax returns. The IRS notes that tax transcripts – which show most of the information from a tax return – are easily obtained online more quickly, are free and sufficient for most purposes. Taxpayers who still need a paper copy of their actual tax return may submit a Form 4506 along with a $50 fee for a copy of each return. It may take 75 calendar days to process a request for a copy of a return.
Federal law limits what the IRS can do on behalf of taxpayers during a funding lapse; however, some programs funded by user fees present an opportunity for the IRS to help taxpayers receive critical services. These services can assist taxpayers trying to obtain mortgages or taxpayers affected by disasters who need copies of their tax returns as part of the recovery effort.
The IRS appreciates the patience of taxpayers and tax professionals during this period and encourages continued use of automated applications on IRS.gov, whenever possible.