Taxpayer Consent Language
MISMO's Taxpayer Consent Language provides a consistent way for the mortgage industry to comply with the Taxpayer First Act, which requires the taxpayer to provide consent for the express purpose for which their tax information will be used. Additionally, the taxpayer must provide consent for their tax information to be shared with other parties. Lenders are encouraged to use MISMO's model Taxpayer Consent Language to obtain borrower consent to share tax information received from the Internal Revenue Service (IRS) with other parties involved in the mortgage transaction.
The Taxpayer Consent Language is published in Recommendation status which is the highest possible maturity level for a MISMO standard. A Recommendation has been thoroughly reviewed and implemented by a wide range of organizations and industry participants. No license fee is required to use the Taxpayer Consent Language.
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Access Information for Members
Access Information for Non-Members
Non-Members can access the standards HERE.
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For many years the lending industry has used a specific provision in the Internal Revenue Service code to order transcripts. Having borrowers sign form 4506-C has always sufficed to indicate taxpayer consent. Section 2202 modifies the tax
code and now necessitates that organizations inform the taxpayer of the "express purpose" for which tax return information will be used. Further, this Section now necessitates that borrowers provide "express permission" to allow the sharing
of return information with other lending stakeholders. Just having form 4506-C signed will no longer suffice to meet these new consent requirements.
MISMO's Taxpayer Consent Language was created to provide a consistent way for the mortgage industry to comply with the new requirements which go into effect on December 28, 2019. This language provides consent for both express purpose on the usage of the tax information as well as gaining express consent to share the tax information with third parties, a common practice in the mortgage industry.