In today’s lending environment, underwriters face tighter investor requirements, higher compliance expectations, and increasing pressure to close quickly. At the same time, income documentation is more complex than ever — especially when borrowers rely on variable income, commissions, bonuses, or self-employed earnings.
That’s why 4506-C Tax Return Verification continues to play an important role in modern underwriting. When lenders need a clearer view of income history and accuracy, verifying what’s on file with the IRS can provide the confidence needed to move forward.
Birchwood’s 4506-C Tax Return Verification helps lenders confirm applicant tax transcript data through compliant sources — reducing risk and preventing last-minute surprises.
Learn more: birchwoodcreditservices.com
Form 4506-C is the IRS authorization form that allows a borrower to request that tax return transcript information be shared with a third party (such as a lender). It’s commonly used through the IRS Income Verification Express Service (IVES) to validate income details and confirm the accuracy of borrower-reported information.
Instead of relying solely on borrower-provided documents, lenders can use 4506-C verification to cross-check income history and identify inconsistencies that may require further review.
Borrowers don’t always misstate income intentionally — but whether it’s accidental or not, inaccuracies create risk.
In today’s market, underwriters often review:
But short-term documentation may not tell the full story — especially when income fluctuates or when borrower-provided paperwork is incomplete. 4506-C verification adds another layer of visibility into income history and helps underwriters make more confident decisions.
When used strategically, tax transcript verification supports stronger underwriting outcomes.
IRS transcript data provides a reliable point of comparison when reviewing borrower income history.
4506-C verification can help identify mismatches between borrower-submitted information and IRS records — helping lenders catch potential issues early.
When tax transcript questions are addressed early, lenders can avoid late-stage rework, conditions, and documentation requests.
Many lenders and investors require strong documentation trails. Transcript verification supports file integrity and helps reduce post-close concerns.
4506-C verification is valuable across many files, but it’s especially important in risk-sensitive scenarios such as:
In these cases, verification isn’t a slowdown — it’s a tool that prevents surprises and protects turnaround times.
Birchwood’s verification services are built to deliver reliable results with less manual burden for lender teams.
With Birchwood, lenders can expect:
When underwriting teams have trusted verification early in the process, they can move files forward faster — and with fewer disruptions later.
Short-term documentation isn’t always the full picture. When lenders need clarity on income history and verified transcript data, 4506-C Tax Return Verification provides an important layer of confidence.
If you’re looking to reduce fraud exposure, improve underwriting accuracy, and prevent surprises that delay closings, Birchwood’s 4506-C verification can help.
Learn more at birchwoodcreditservices.com or call 800-910-0015.