Tax Truth

Today TaxMama hears from Kay in Pensacola, Fl who wants to know two things,
“1) Who has the ability, besides the IRS, to verify tax records with the IRS?

2) How would this be done? If I wanted to verify a person’s income, is there a way to check if the 1040 information they gave is truthful?”


Dear Kay,

What part of “confidential” don’t you understand?

IRS files are so confidential that there are serious penalties for agents looking into files that are not assigned to them.

You cannot get anything from IRS without the taxpayer’s written permission via a power of
attorney or other limited authorization.

Or a court order.

Of course, with the taxpayer’s authorization, you can get either a copy of the tax return, or just a transcript. That’s what banks and mortgage companies do all the time, before they lend large sums of money.

If you want to verify a person’s stated income, have this person request that a transcript of that year’s income tax return be mailed to you. All they have to do is sign Form 4506T, specifying which year or years. http://www.irs.gov/pub/irs-pdf/f4506t.pdf

If you are so suspicious of this person, and you can’t discuss your concerns openly, perhaps you shouldn’t be hiring them, or lending to them, or marrying them…or whatever association it is that brings rise to this concern.

And, remember, you’ll find answers about lots of information about tax research and other tax issues, free. Where? Where else? At TaxMama.com

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