The IRS is tightening up it's income verification and this affects an income verification tool used by lenders. Lenders now have a fast, easy way to find out if you're stretching it financially...

We will help you improve your cash flow and make it easier to control your business...
Bookkeepers Plus Inc. service Long Island, NY

...through letting you concentrate on what you do best by leaving us to do the rest.
Payroll outsourcing Sales Tax reports Bookkeeping QuickBooks Help
Outsourcing pros & cons Outsourcing Quote Outsourcing Report Contact Us
Outsourcing Home Links & Resources Link Exchange CHALLENGE US!

Self-Employed May Find Mortgages Harder to Get

Thinking about about your income on a mortgage loan?

Think again.

The games gotten tougher and the stakes are higher.

The IRS is tightening up it's income verification and this affects an income verification tool used by lenders.

Lenders now have a fast, easy way to find out if you're stretching it and they won't have to jump through hoops to do it. I had to jump through hoops at a poor tiger's version of Sigfried and Roy-I can tell ya-it ain't no fun.

All the lender has to do is go online and talk to the IRS's computers and in one to two business days the cat will be out of the bag.(Don't get me started about cats being in bags in the first place).

How's that possible? Well back in the day, (actually until Friday, September 29 2006) a lender had to fax a form called a 4506-T to the IRS.

This form allows authorized parties to get a copy of you tax transcripts for up to 4 years. Tax transcripts summarize income and tax data.

You have to sign the form and its only good for 60 days after the signing.

Until that fateful Friday, this was all done non-electronically. Way to slow for todays lenders computerized, high speed mortgage process. What this meant was that a lot of mortgage lenders simply skipped reviewing the transcript on their way to GO.

They used the transcripts as quality control on closed mortgages.

Not so anymore.

It is expected that more lenders will be asking for 4506-T's and using the the transcripts in approving mortgages.

This increased verification may put the nix on what's called “stated income” loans aimed at the self- employed. In these loans, the applicant simply swears on his/her grandmother's grave that yes, they can pay the mortgage.

They don't have to cough up W-2, tax returns or other usual suspects.

Now, the lenders have real live ammo to flush out applicants who are lying about their income. These people may face prosecution and/or be subject to audits by the IRS.

Since you'll be more likely to be asked to fill out one of these things (4506-T) you should read and follow the directions for the 4506-T closely Complete every box on the form. Write N/A if it doesn't apply.

In particular, make sure you date it and list the tax years.

Signing an incomplete 4506-T is an open invitation to identity theft. Remember the lender only has 60 days to check you out and can only check out the tax years you say they can. If you leave it open, you're basically giving them “Whenever Minutes”.

If you need help filling these out, give us a call or stop by the office.

We'll be happy to help.

One last thing, I'm starting a new part of this column called

Ask the Tiger: Write in to this paper to ask me anything except about that Tigress who broke my heart.

All your Tax & Finance questions will be answered here.

Don't be shy, if you don't look like Sigfried, I won't bite.


The Tiger, Elizabeth Marasco , MBA, Mike Bronstein CPA
Tiger Tax and Accounting Services
354 Neighborhood Rd
Mastic Beach, NY 11951

Source: Information for this article was originally published in the Washington Post Saturday, September 30, 2006; Page F04 (If we're not doing taxes, we're doing our homework ).

Thank you for your interest, and please remember we offer
a free Outsourcing Report to business owners in Long Island and New York.


Elizabeth Marasco, MBA
Bookkeepers Plus, Inc.
354 Neighborhood Rd
Mastic Beach
NY 11951
Phone: 631-949-5864
Fax: 631-207-8349

— Outsourcing articles & services —

Outsourcing Report

Subscribe to this free report on the benefits of outsourcing back office functions and you'll learn how to lower risks while concentrating more on those activities that produce profit!

Subscribe to Outsourcing Report free of charge

Comparing outsourcing with in-house solutions

What do you stand to GAIN by outsourcing select back office activities... and how do you know which ones to outsource and which not? This interesting article explains the pros and cons of outsourcing and offers a make-sense tool for finding the activities whose outsourcing brings the biggest profits and benefits.

Read which activities benefit from outsourcing and what to look out for in outsourced solutions.

Outsourced bookkeeping

Want more accurate bookkeeping with timely delivery and without any problems brought to you about it?

If so, read this article about outsourcing your bookkeeping and what that can bring you in terms of benefits...

Outsourced bookkeeping - less stress and more profit...

Give Bookkeepers Plus a challenge!

An easy way for business owners to get first-hand experience on our services. Give us a challenge and we'll tell you how we would solve it... free!

Give us a challenge involving outsourcing of accounting services...

Get help with QuickBooks  from Bookkeepers PlusQuickBooks help, training & support

Learn how easily one can make mistake in the setup of QuickBooks — and how simple it is to fix these in your accounting software!

Use an expert's help in training & support for your QuickBooks accounting software and procedures.

Different functions of bookkeeping — read to see what you can benefit:

Billing & Accounts Receivable

Explained in understandable form what is included in accounts receivable and what you need to look out for in this area.

Learn how vital accounts receivable is to your cashflow!

Accounts Payable & Cashflow / credit

What functions are included and how do these influence your finances and credit rating — and how do you speed up the cashflow?

Learn the importance of accuracy in accounts payable for your activity!

Purchasing & Inventory -controlling cost

Keeping accurate record on purchasing and inventory allows for optimizing of your stock and investment while minimizing downtime.

Read what outsourcing the purchasing & inventory functions can benefit you!

Banking routines

This area of bookkeeping frees up a lot of your time while ensuring your funds arrive promptly and securely.

Read what benefits you receive by outsourcing the banking duties to an accounting professional.

Cash Management

How would you like to be free from constant worry and checking of your cashflow and receive some control and prediction to finances?

How cash management can increase your financial control and prediction.

Payroll outsourcing

Calculating salaries is the most time-consuming of all activities. Outsourcing your payroll you gain accuracy at lower cost than handling it in-house.

Why payroll is usually the first thing companies outsource.

Financial Management Reporting

The absolute jewel of services, ensuring that you gradually gain full control over financial planning in your company.

Management Reporting teaches you to plan finances hands-on with accuracy and profits!

Project Accounting

An essential service if you have larger jobs or projects coming up which you want to keep under tight financial control. Quality service giving greater financial control.

Project Accounting - how to keep the budget and finances of any larger job or project under control!

Taxes and preparing books for your CPA

Why not save some 50% off this part of your accounting by letting our bookkeepers prepare taxes and books for your accountant / CPA? Save money and headaches by...

...outsourcing tax work and preparation of books for accountant's review.

Useful articles for LI business owners

This page contains articles by Elizabeth Marasco on various subjects relating to taxation, finance, accounting, bookkeeping and other important issues.

Read Elizabeth Marasco's articles on taxation and accounting in Long Island and New York

Bookkeepers Plus Virtual Assistant

Don't need a full-time secretary or can't afford one? Then the solution is the Bookkeepers Plus Virtual Assistant - you pay only for the work we performed at the quality requested!

Bookkeepers Plus Virtual Assistant - secretarial work without the cost.

Human Resources

Outsource the tasks involved in Human Resources: Workers Comp, insurance, retirement plans, leave maintenance, recruitment, personnel policies, resolving disputes, etc. and save money and time!

Human Resources support services: Workers Comp, Retirement Plans, Recruitment, disputes...

Other Credits and Collections actions

These tasks are not very spectacular if done accurately and correct. But if you forget then many unnecessary problems can arise from...

...Petty Cash , Employee Reimbursements, Business Expenses, and Vehicle Mileage tracking

Bookkeepers Plus Office Software Application Training

Read how businesses throw away thousands of dollars monthly... and how you can make sure you don't... and secure it for free!

Bookkeepers Plus Office Software Application Training & Consulting

Sales Tax

Keeping accurate record on your sales tax and filing in time is not exciting and thus it suits outsourcing well. Save money while avoiding all problems due to delays or mistakes...

See the savings and benefits available from outsourcing your sales tax routines!

Getting the most out of your QuickBooks? Participate in this survey to find out!

Want to see if you are receiving the true benefits from your QuickBooks software... or check if it could help you more than currently?

Take this online survey on QuickBooks to find out... and receive a free initial phone consultation!

About Bookkeepers Plus Inc.

Introducing Bookeepers Plus Inc. — the outsourcing expert for businesses in Long Island NY.

About Bookkeepers Plus...

Bookkeepers Plus Outsourcing Analysis

| Contact Bookkeepersplus Inc. | About Bookkeepersplus Inc. | Links & Resources | Site Map |
Exchange links with | Copyrights & Privacy & Legal Disclaimer |

Web Design & Content Creation: HDK Bespoke Accountancy Web Design Services