IRS Furloughs Could Slow 4506-C Transcript Processing

In a CNBC article published October 8, the IRS confirmed it will begin furloughing thousands of workers as a result of the ongoing government funding lapse. The move could reduce staffing levels across several divisions, including those responsible for processing 4506-C tax transcript requests.

What This Means for Lenders

• With IRS staffing reduced, 4506-C transcript turnaround times may slow.
• Earlier government communications suggested transcript operations would continue normally, but that now appears uncertain.
• Informative Research is actively monitoring the situation and will share updates as soon as they are available.

Our Take

While we don’t yet know the full impact, lenders should be prepared for possible delays in receiving IRS tax transcripts. IR’s verification platform will continue to process requests, but response times could vary depending on IRS capacity. We’ll keep our clients informed and provide alternate options where possible.