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C. After the current year’s filing deadline, the borrower must submit signed tax returns for last
year plus the two years prior to last year. For example, if during the current year, the
Borrower applies after the IRS filing deadline, he would provide tax returns for last year plus
the two years prior to last year.
D. After the current year’s filing deadline, if the borrower filed an extension, then the borrower
must provide a copy of the extension filed along with acceptance from the IRS, plus the two
years prior to last year’s tax returns. Also, as an executed Affidavit in Lieu of Current Year’s
Tax Returns (Attachment J) for last year is required in this scenario.
E. All tax returns must be signed by the borrower, including electronic returns and
computerized summaries from the IRS. In addition, the top portion of the return (name,
address, and social security number) must be completed.
F. Most types of returns filed with the IRS, including electronic returns, are acceptable;
however, the return must:
1. Be the type of return (e.g. the 1040EZ or 1040A) which does not allow for the deduction
of mortgage interest or real estate taxes, OR
2. Be a return which includes information which would enable MMP to determine that the
borrower claimed the standard deduction (e.g. 1040 showing a standard deduction). If
the information on the return indicates that the borrower did not claim a standard
deduction, then a full copy of the return with all schedules must be provided.
3. If the tax returns have been reconstructed, a notarized affidavit from the borrower must
be provided stating that the returns are a true and correct reconstruction.
NOTE: Electronic Filing Summary, IRS Form 8453 is not acceptable because it does not
provide the necessary information.
G. IRS Form 4506-C, Request for Transcript of Tax Return can be used by the lender to
request a transcript of the Borrower’s tax return(s). Make sure that all schedules are
included and the borrower signs and dates the transcripts.
H. If the borrower(s) was not required to file a tax return based on the IRS requirements, they
must provide an executed Affidavit Regarding Not Being Required to File Tax Return(s)
(Attachment S) stating that they were not required to file and the reason why they were not
required to file. Documentation to support the reason for not filing along with tax transcript
confirming not filed may be required.
I. Only when exemption to the “first-time homebuyer” for a veteran requirement is being
requested the following is required:
1. Attachment V – Veteran’s First Time Homebuyer Exemption Certification fully
completed, dated and signed; and