A Short Guide to IRS Transcripts

You undoubtedly know that you
should maintain copies of your tax returns for a certain number of years after
you've filed them, but things come up. If you need a copy of an old tax return
but don't have it, you can get IRS transcripts. The IRS does not charge you for
any of their tax forms or records.Exactly what is an IRS transcript?Although not presented
similarly, your tax transcript contains the same data as your tax return. You
can review your income, tax status, and claimed credits and deductions. However,
the transcript will not include your name or other identifying information.The IRS has been doing its
part to stop identity theft and other forms of fraud. To prevent identity
theft, it now "masks" or obscures sensitive information on your
transcript, such as the last four digits of your SSN, your full phone number,
and any accounts that may be linked to that number. However, all of your
tax-related financial details are shown in full.For what purposes would you
require an IRS transcript?There are many scenarios in
which you would require transcripts. You could be looking for your adjusted
gross income (AGI) or verifying and confirming your tax payments. Most people
get transcripts when they must prove their income for financial aid or loan
applications. Applying for federal health care programmes or subsidised housing
may also necessitate official transcripts.You may have come to terms
with the fact that your record-keeping practises are less than stellar and that
you have nothing written down to show for your dealings with the IRS. Most
taxpayers may easily obtain transcripts without too much hassle.Types of IRS transcripts
availableThere are five distinct of IRS tax transcripts available.1. Tax return transcriptThis version is the most
typical one. It displays almost all the data from your original tax return line
by line. If you used form 1040-x, it wouldn't include such data in its report.Individual tax returns can be
changed using Form 1040-x. It modifies a previously filed Form 1040 by making changes,
deletions, or additions. If you receive a W-2 or 1099 for the income you didn't
report, or if your ex-spouse claims your child as a dependent on their taxes,
you may need to file a 1040-x.2. Tax account transcriptYou'll find more information
in this transcript. Your taxable income in all its forms and the timing,
method, and amount of any payments you've made are all part of your age.3. Record of account
transcriptSelect this transcript to read
a mashup of the previous two.4. Income and wage transcriptThis one display financial
data, such as tax returns and IRA contributions (W-2, 1099, and 1098)5. Verification of non-filing
letterThis is the method to employ
if you need to show that your income was too low to warrant filing a tax return
for a specific year.ConclusionThe
IRS transcripts are useful in
many situations, including loan applications. They may be obtained easily and
cover the current year and the previous two. Don't hesitate to contact the
Internal Revenue Service or a licenced tax professional for advice on your
situation.