If you're thinking about a significant investment and the bank needs to see your tax returns from the past 3 years, you may be required to dig up some old paperwork. You may want to prove your monetary sustainability by revealing your adjusted gross revenue for the previous three years. However, you can't seem to track down your tax returns.

In the event that you discover yourself in a scenario like this one, there is no need for you to freak out. You may easily access this information by getting a copy of your tax statement from the IRS either through email or by accessing it from their website. Most of the details you enter on your Application 1040 may be found on this document, allowing free access.

IRS tax transcript: What is it?

A tax transcript from the IRS will provide a summary of the elements of your tax filing. Still, it will only disclose a portion of your private information to safeguard your confidentiality. It is possible to display all of the information relating to your finances and taxes, but this depends on the transcript you demand. Your tax liability and other items will split their parts according to how they appear on Form W-2.

If you require an IRS tax transcript, you can make an application for one by visiting the Transcript obtained by the IRS website at any given time and at no cost.

Elements of Tax Transcript from the IRS

You have the option of requesting one of the following five classes of tax transcripts from the IRS:

1. Transcript of Tax Return: Your adjusted gross income (AGI) and other data from your primary tax return are here. This transcript is available for the existing taxation as well as the two prior taxable years upon request.
2. Transcript of Your Tax Account: This condensed version of your tax transcript includes only the most fundamental pieces of information, such as the kind of return you filed, your marital status, your adjusted gross income, your tax liability, and the way you can compensate for it. You can obtain this Tax Transcript from the IRS for the ongoing year until the previous 10 years, or you could limit your petition to the last 3 years if you submit it by email or over the phone.
3. Transcript of the Record of Accounts: This IRS tax transcript is probably the most detailed tax transcript you may get; it integrates the data found against one's tax return with the information included in your tax accounts' transcripts. You are only able to make a request for this transcript covering the ongoing year and the last three years to it.
4. Transcript for Salary and Income: This IRS tax transcript only includes the information that was supplied on one W-2, 1099s, and 1098 forms, as well as the information about someone's IRA contributions. You can request it for the ongoing tax year in addition to the last 10 years.
5. Acknowledging Non-Filing Letter: That you haven't filed a Form 1040 with the IRS for a given year is all this proves. Your application can cover the current fiscal year till the 3 preceding years.

Why Do You Require Tax Transcript from the IRS?

If you maintain records and all of your essential tax documents are arranged properly and carefully, you may never need to obtain an IRS tax transcript at any point in time. You will have access to your whole 1040 in order to get just what you want.

It is possible that you will need to retrieve your transcript to offer an original document of the facts that pertain to your taxes if you have lost your documents or if it is incomplete.

When you submit a mortgage application and the creditor needs to examine the documentation of your financial history, one typical circumstance in which you could want a Tax Transcript from the IRS is when you make the application. Financial institutions normally want proof of earnings in the shape of a minimum of two years' worth of tax returns to be filed. They prefer to have this documentation from the Internal Revenue Service (IRS) rather than the applicant themselves.

When you use the FAFSA to apply for financial assistance from a college or institution, you could also be required to provide a tax transcript. When you enroll for federal Medicaid initiatives like Medicare, you can be asked to provide a copy of your tax transcript as part of the application process.

How to Get an IRS Tax Transcript?

The Internal Revenue Service (IRS) provides two primary methods of obtaining your tax transcript:

Obtain by Get IRS Tax Transcript Option

Select the "Get your tax Transcript digitally" option under "Claim Online" to access your transcripts electronically.

You'll need to sign up for the program and reveal personal details like your SSN, birthday, and tax liability. Your email address is required, and you will be required to enter bank details for a financial service or product like a payment gateway service, loan, or mortgage with home equity.

Application for Tax Transcript from the IRS

In most cases, you could expect your transcript within 5-10 days. You'll need to return to the Get Transcript website you visited beforehand to submit your digital tax transcript application. In the "Ask by Email" box, select the option to obtain a tax transcript.

You must provide your Social Security Number or Individual Taxpayer Identification Number, date of birth, contact information, and zip code. Since Tax Transcript from the IRS will be sent to the address you mentioned while filing for the tax transcript. Also, if you intend to relocate, you will be required to update your residential address with the IRS before relocating and requesting an IRS tax transcript if you have relocated since the last time you filed your taxes.