HOAs file tax returns as mandated by the Internal Revenue Service (IRS). Once this process is complete, an official record of the tax return information is issued. An IRS transcript is an official record of your tax return information provided by the IRS. The HOA tax return information verifies income for a mortgage application or application for financial aid. However, the absence of this document may prompt HOAs to seek alternative solutions like an IRS transcript. While keeping copies of your tax returns is important, if you lose them, obtaining an IRS transcript is a convenient and free alternative.
Types of IRS Transcripts
If you are wondering what a tax transcript from the IRS is, keep reading. The first step is to familiarize yourself with the various types of IRS transcripts available. Here are the two most common types to help you make more informed decisions:
Tax Return Transcript
A tax return transcript shows some of the filed items from the initial tax return. This includes any accompanying forms and schedules. However, tax return transcripts don’t show any changes made after the return was processed. If you are considering mortgage applications and financial aid, tax return transcripts can help you navigate processes.
Tax Account Transcript
A tax account transcript provides a summary of the HOA’s account, including any adjustments made after filing the original return. It includes basic information such as filing status, taxable income, and adjustments or amendments. This transcript helps to review changes made to your account, such as additional taxes owed or payments made.
How to Request an IRS Transcript
Once you know what an IRS transcript is, the next step is to request one that suits your needs. Fortunately, the request process is straightforward, whether online, by phone, or by mail.
Online Request
The fastest way to get your tax transcript from the IRS is online. Create an account and verify your identity by providing personal information such as your Social Security number, date of birth, and filing status. Once your identity is verified, you can view and print your transcript.
Phone or Mail Request
If you prefer offline solutions, request your transcript by calling the IRS or by completing a mailing form. Since it takes several days to a few weeks to receive your transcript by mail, it is advisable to plan accordingly if you need it by a specific deadline.
As an HOA member, knowing what an IRS transcript looks like is vital for preparing, organizing, and managing tax information. If you ever lose your tax returns, don’t stress! Abel Accountants can help you acquire an IRS transcript to serve as a reliable substitute.
