IRS Form 4506-C is the Income Verification Express Service (IVES) request form that authorizes a lender or other IVES participant to obtain tax transcript data directly from the IRS. It replaced the older Form 4506-T in 2021 and is now required for all lender-initiated IRS income verification on SBA and conventional loan applications.
Form 4506-C (irs.gov/forms-pubs/about-form-4506-c) is the IRS-authorized mechanism for lenders, mortgage companies, and other IVES participants to request tax transcripts — income verification data taken directly from IRS records — as part of underwriting. The 'C' designation marks the version redesigned for IVES participants (banks, credit unions, SBA lenders, mortgage servicers enrolled in the IRS IVES program at irs.gov/individuals/ives-program). Form 4506-C superseded the older Form 4506-T starting March 1, 2021. The IRS issued guidance in 2020 (IR-2020-272) requiring all IVES participants to migrate to the new form by that date. Key structural changes: 4506-C is formatted to parse electronically by the IRS IVES automated system, reducing processing time from 5-10 days (4506-T manual processing) to 1-3 business days for IVES participants. What lenders request via 4506-C: (1) Tax Return Transcripts — line-item tax data from Form 1040, 1065, 1120, or 1120-S returns; (2) Account Transcripts — record of account showing adjustments and balance; (3) W-2/1099 Transcripts — third-party reported income figures. SBA SOP 50 10 7 (sba.gov/document/sop-50-10-lender-development-company-loan-programs) requires lenders to use 4506-C to verify borrower income on all 7(a) loans above $150,000 where tax returns are used as income documentation. For business borrowers: the business entity (not just the individual owner) typically signs a separate 4506-C for its entity-level returns (1065 partnership return, 1120-S S-corp return, or 1120 C-corp return). Most SBA lenders require both the individual 1040 transcript and the business entity return transcript.
The SBA requires lenders to independently verify borrower income directly from IRS records, not just rely on borrower-provided returns. Form 4506-C authorizes the IRS to send transcripts directly to the lender via the IVES system. It is a fraud-prevention requirement — borrower-supplied returns can be altered; IRS-sourced transcripts cannot.
No. Form 4506-T was the predecessor; the IRS retired it for IVES participant use as of March 1, 2021 (IR-2020-272). Form 4506-C is the current IVES-specific form with electronic-processing formatting. Non-IVES uses (individuals requesting their own transcripts) still use Form 4506-T or the IRS online Get Transcript tool at irs.gov/individuals/get-transcript.
Yes. Individuals can access their own transcripts for free at irs.gov/individuals/get-transcript without a 4506-C. Form 4506-C is specifically for authorizing a third party (your lender) to request transcripts directly from the IRS. You sign it; the lender submits it through the IVES system.