Some Important Points About IRS Transcripts

It's important to be diligent
while filing your taxes, no matter how easy or complex, and the IRS transcripts
available on their website may help.Submitting a return slowly but
completely is usually preferable to submitting a return fast but incorrectly.Businesses create W-2s and
1099s for employees and IRS copies each year. The IRS may send a notice if you
still need to include these.Tax transcript: what is it?To preserve your privacy, the IRS
transcripts only display select pieces of your personal information. Your whole
tax and financial history may be detailed in a transcript, depending on your
chosen type. You should expect a detailed breakdown of your taxable income and
other items on Form W-2.What may be seen in an IRS transcript?The Internal Revenue Service
offers five distinct IRS transcripts:Tax Return Transcript: It
includes your adjusted gross income and all other line items from your original
return. Upon request, this transcript is available for the current tax year and
the two prior years.Tax Account Transcript: An
abridged version of your IRS transcripts,
including your filing status, taxable income, and payment method, is available
through your tax account. The IRS's official online request form (Form 4506-T)
and the phone service (up to 3 years) both allow you to get this transcript for
the current year and up to 10 years in the past.Record of Account Transcript:
It includes both the transcript of tax accounts and tax returns. The only years
for which this transcript is available are the current and the two previous
academic years.Wages and Income Transcript:
Your W-2, 1099, and 1098 forms and your IRA contribution records are the only
data sources used to compile your Wage and Income Transcript. This is available
for the current tax year and the prior 10 years upon request.Verification of Non-Filing
Letter: You are required to inform the Internal Revenue Service (IRS) of the fact
that you did not file a tax return for a specific year by filing a Form 1040
Non-Filer Letter.  You can request your
current and two previous tax returns.When would you want to use a
transcript?You may never need IRS tax transcripts if you maintain your
records in order and your tax data is easily accessible. You can access the
entire 1040 and extract the information you require.Request a transcript if you
misplaced it or didn't complete your tax paperwork. A mortgage lender may
request your tax returns to verify income and other details. Home loan lenders
have demanded IRS income verification for the past two years.Tax transcripts may be needed
for FAFSA college assistance applications. A tax transcript is another common
document that may be required when applying for federal health care programmes.Pay
a professional to handle your tax preparation. You can either do your taxes
yourself or hire professionals to help you. Use them with assurance if you're
doing your taxes. You can confidently file your taxes by answering a few
straightforward questions. Maximise your refund regardless of the filing
method. I hope this post was helpful.