The bank wants to pass on the 4506-T fee to applicants. Does the fee go in section B of the CD? Thanks.

Who is the fee payable to? If a third party, then that is your only choice.

Because the fee is "passed through" to a third party, yes. However, the IRS doesn't charge a fee for providing the transcript, according to information at www.irs.gov. Are you using a third party to provide what is otherwise a free service?

It's a 3rd party fee that actually does more than just get the transcript. Only on investor loans. (required by the investor)

This has been discussed (and debated) a number of times on BOL. The 4506-T is the tax transcript fee and goes in Section A. chart showing fee placement.





Edited to repost link.

Truffle, even if the fee is paid to a 3rd party, such as Data Verify?

TR- if you are passing the fee to the investor as part of the secondary market transaction, Section A would be correct. If the lender is paying this to a third party, it has to go in Section B.

Randy, that what I was thinking (after much research!) Thank you guys for the info.

@Truffle - Do you have an updated link for the Tolerance chart you referenced. The link goes to a weird Japanese or Chinese site now.

What bank do you work for?

So I know never to get a loan there.

Considering a third party can no longer obtain tax transcripts using a T-4506 and have to go through the Income Verification Express Service and unless the lender is a direct participant, will have to go through a third party that is a participant, who will likely charge a fee, that fee will be required to be disclosed in Section B as a third party charge.

https://www.irs.gov/individuals/international-taxpayers/income-verification-express-service