Each borrower must submit a signed IRS Form 4506-T to the servicer and, when available, a signed copy of his or her most recent tax return. If the borrower is unable to fulfill the tax return requirement, the servicer must submit the Form 4506-T to the IRS for processing.
If the borrower provides the required tax return, the servicer must retain the signed Form 4506-T in the borrower’s file and may be required to submit it to the IRS if requested to do so by Freddie Mac, the program compliance agent. In addition, a servicer should continue to follow its standard practices for fraud control, which may include submitting the IRS Form 4506-T in specified circumstances. Any conflicts that arise should be addressed in accordance with guidance provided by Freddie Mac.
Evidence of an electronically filed tax return satisfies the signed tax return requirement. If the borrower submits an unsigned tax return without evidence of electronic filing, the servicer may either file the Form 4506-T or return the tax return to the homeowner for signature. Upon execution, the borrower should return the “signed” return to the servicer.
- If a borrower submits unsigned tax returns, but provides evidence the returns were electronically filed, does evidence of the electronic filing satisfy the requirement for "signed tax returns"?
- If a borrower submits unsigned tax returns, must a servicer file the Form 4506-T or may they return the tax returns to the homeowner for signature?
Is the borrower eligible for the HAMP if he or she is not a current tax filer?
Yes. A borrower is required only to submit his or her most recent tax return. If the most recent tax return is not available, the servicer must process the borrower’s signed Form 4506-T to confirm that the borrower did not file a tax return.
Is the borrower eligible for the HAMP if he or she is not required to file a tax return?
Yes. Such a borrower must document why he or she does not need to file a tax return. The servicer must review and approve this rationale.