If you're a financial institution thinking about approving a loan for a business, you need to do your due diligence before pulling the proverbial trigger. Thanks to modern-day technology and internet access, doing so is relatively easy. But you have to know where to look.
Tax returns do more than provide a paper trail for individuals and businesses to prove to states and the federal government that they met their financial obligations. A request for verified IRS tax return transcripts is one of the best ways for lenders (i.e., banks,
The IRS started modernizing Form 4506-C. This process will add automation, which will improve the agency’s efficiency and completion rate. The initial step of the modernization effort is the implementation of Optical Character Recognition (OCR) software. This software reads the form. For your form to
Missing tax returns usually means trouble, and it’s a safe bet that they weren't all lost in the mail.Even experienced loan underwriters can overlook the significance of a missing tax return. By itself, a public records check showing that a business has no tax liens
When it’s time to consider the financial situation of a business or individual for a loan or mortgage, lenders agree that verifying tax transcripts directly from the IRS is one of the most important steps to take when evaluating the borrower’s ability to repay the
Commercial lenders must grapple with fighting synthetic identity fraud. It is one of the recent trends most fraudsters use to get away with their malicious acts. With this strategy, at least $6 billion is lost per year. Synthetic identity fraud It is a process that involves the
A credit agent must decide to lend based on many different data points. What is one of the biggest problems in the world of credit decision making? Not the least of which is tax lien data. However, there is good reason to believe that tax
Commercial lenders face the challenge of detecting tax fraud from businesses that apply for loans. Throughout history, many businesses have used illegal means to conceal the health of their business, and this not only costs the lenders but it also negatively affects the nation’s economy.The
A LLC or Limited Liability Company is a type of private business not subject to as many laws as standard businesses which makes the structure more flexible. An LLC cannot be double-taxed because the pass-through status allows them to report business income on their personal
While businesses are only required to file an income tax return once a year, there are several other factors to consider when discussing business taxes. One of these is the due date of the business’s tax return which is dependent upon the structure of the