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SBA Information Notice: New IRS Form 4506 for use by IRS IVES participants

Summary

An SBA Information Notice, control no. 5000-20068, effective December 11, 2020, telling SBA employees and SBA Lenders that on October 20, 2020 the IRS issued Form 4506-C for authorized Income Verification Express Service (IVES) participants. Under SOP 50 10 6, lenders must obtain tax return transcripts through IVES, either as participants or through a third-party participant. IVES will accept Form 4506-T through February 28, 2021; beginning March 1, 2021, all requests must be submitted on Form 4506-C, still with the Qualified and Non-Qualified coversheets. A footnote cites the Taxpayer First Act: a qualified disclosure under section 6103(c) goes to a person verifying the income or creditworthiness of a borrower in a loan application. Dianna L. Seaborn, Director, Office of Financial Assistance, signed it.

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Full text

                      SBA Information Notice
TO:    All SBA Employees and SBA Lenders                                           CONTROL NO.: 5000-20068

SUBJECT: New IRS Form 4506 for use by IRS                                          EFFECTIVE: December 11, 2020
IVES participants




The purpose of this Notice is to inform all SBA employees and SBA Lenders that, on October
20, 2020, the Internal Revenue Service (IRS) issued IRS Form 4506-C for use by authorized IRS
Income Verification Express Service (IVES) participants.

SBA’s Standard Operating Procedure (SOP) 50 10 6, Part 2, Section A, Chapter 6, Paragraph B,
sets forth tax transcript/verification of financial information requirements. SBA Lenders must
obtain tax return transcripts through the IVES program. SBA Lenders may either become an
IVES participant or may contract with a third-party IVES participant to obtain tax return
transcripts through the IVES program.

The IVES program will continue to accept IRS Form 4506-T through February 28, 2021.
Beginning March 1, 2021, all IVES requests must be submitted on IRS Form 4506-C. SBA
Lenders must continue to use the Qualified and Non-Qualified1 coversheets with IRS Form
4506-C.




1
  Per the Taxpayer First Act, a "qualified disclosure" means a disclosure under section 6103(c) of
the Internal Revenue Code of 1986 of returns or return information by the IRS to a person
seeking to verify the income or creditworthiness of a taxpayer who is a borrower in the process
of a loan application. Common examples of “qualified disclosures” are disclosures to lenders
verifying income or creditworthiness on customers for various types of loans (auto, home
mortgage, business, etc.). Some examples of non-qualified disclosures would be disclosures for
tax administration, employment verification checks, and other non-lending purposes.
PAGE 1 of 2                                                                                EXPIRES: 12-1-21
SBA Form 1353.3 (4-93) MS Word Edition; previous editions obsolete
Must be accompanied by SBA Form 58

                                   Federal Recycling Program   Printed on Recycled Paper
The following links provide additional guidance from IRS:

Subscribe to IRS IVES news
FAQs on the IRS IVES system
Getting started using IVES

Questions:
SBA Lenders that are IVES participants should direct questions to the IRS point of contact that
was provided in the IVES welcome package. SBA Lenders that contract with a third-party IVES
participant should direct questions to the IVES participant.




Dianna L. Seaborn
Director
Office of Financial Assistance




PAGE 2 of 2                                                                               EXPIRES: 12-1-21
SBA Form 1353.3 (4-93) MS Word Edition; previous editions obsolete
Must be accompanied by SBA Form 58

                                  Federal Recycling Program   Printed on Recycled Paper

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2020-12_SBA-Information-Notice-5000-20068_New-IRS-Form-4506-for-IRS-IVES-participants-508.pdf
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