MPF Traditional Updates to Accept Alternative Documentation for Tax Return Extensions
Effective Date: Immediately (unless otherwise noted)
Updated the MPF Traditional Selling Guide to permit alternative documentation for IRS Form 4868 as evidence the Borrower has filed an extension for the prior year’s tax returns.
PFIs may now obtain proof of e-filing of IRS Form 4868 or payment confirmation (including the confirmation number) of all or part of the estimated income taxes due to support that the Borrower has filed an extension.
Additionally, in cases where a PFI is required to obtain a response from the IRS based on the filing of IRS Form 4506-C, PFIs may, at their discretion, rely on borrower-provided evidence directly from the IRS website that no transcripts are available for the applicable tax year.
For additional information see Section 5.1.4 Allowable Age of Federal Income Tax Returns of the MPF Traditional Selling Guide.
- MPF Announcement 2023-36