4506T Rejection Notice


The IRS has established a cybercrime unit designed to fight identity theft in an effort to prevent hackers from collecting tax refunds from the victims of identity theft. As a result, we are receiving IRS “Rejection Messages” on some of our 4506T transcript orders. A sample of the rejection specifically for identity theft is shown below.

The message requires the borrower to contact the IRS to confirm their identity before transcripts are released. Once identity is confirmed the IRS will only release the transcripts to the borrower and not to a third party tax transcript vendor.

The challenges caused by this additional IRS safeguard are not unique to loanDepot Wholesale, and is an issue that is affecting all lenders and third party vendors.

Until a long-term solution is developed from the agencies, and in an effort to minimize the delay in our loan process – we request that the borrower obtain the transcripts from the IRS when the above reject notice is received. The borrower will be mailed a letter with instructions on how to resolve. To expedite the request, see instructions below.

Please contact your Account Manager with any urgent files that are being delayed to this issue to address possible solutions.

Transcripts Process

  1. The borrower will need to call the IRS at 1-800-908-4490 to determine if there is a flag tied to their name in the IRS system.

    1. If there is a flag on the file, the Borrower will need to request it to be removed

    2. If there is no flag on the file, the Borrower will need to let the Broker know to re-order their 4506T transcripts through the Broker Portal.

  2. Once the flag is removed, the Borrower will contact loanDepot Wholesale to re-order the tax transcripts.

  3. The Broker will notify the Account Manager that there is no longer a flag with the IRS.

  4. The Account Manager will send a request to 4506@ldwholesale.com to re-order the tax transcripts and that the flag has been removed.

  5. A Verification Desk Team Member will process the order with the posted Service Level Agreements.

  6. Note: Borrower to keep the IRS representative’s ID number on record for follow up purposes, if needed.