6 Different Types of IRS Transcripts

by IRS Logics Tax Resolution Software for Tax Professionals

The Internal Revenue Service (IRS) provides taxpayers with various transcripts to help them understand their tax situation. These transcripts are important documents that provide information about a taxpayer's income, taxes, and other financial information. There are six types of IRS transcripts: Tax Return Transcript, Account Transcript, Record of Account Transcript, Wage and Income Transcript, Verification of Non-filing Letter, and Tax Account Transcript.

Tax Return IRS Transcript

The Tax Return Transcript is a document that contains information from a taxpayer's original tax return. This IRS Transcript includes line-by-line details of the return, including any adjustments made after the return was filed. This transcript is typically used to verify income and tax filing status for loan applications, student aid applications, and other financial transactions.

Account Transcript

An Account Transcript from the IRS provides a detailed summary of the activity that has taken place on your account over the past three years. It includes information such as balance due, payments, penalties, adjustments, and other changes. This IRS transcript can help resolve tax disputes, understand past tax returns, and verify tax payments.

Record of Account Transcript

The Record of Account Transcript summarises an individual's tax account information, including tax return information, current balance details, payment history, and other tax-related transactions. This transcript provides an overview of all taxes owed or paid by the taxpayer and any adjustments made to the account. It is an important document to review when filing taxes, as it can help taxpayers ensure that all taxes have been paid and that their records are accurate. It can be used to determine whether a taxpayer is eligible for certain tax credits or deductions.

Wage and Income Transcript 1098, 1099, and 5498

The Wage and Income Transcript summarises the information reported to the IRS from various sources such as employers, banks, and other payers. This IRS transcript includes all wages, salaries, tips, and other taxable income reported to the IRS on Form W-2, 1098, 1099, and 5498, and other information returns. It also includes certain adjustments to income, such as student loan interest deductions and IRA contributions. The Wage and Income Transcript is a valuable tool for verifying income and ensuring accuracy when filing taxes.

Verification of Non-filing Letter

A Verification of Non-filing Letter is an official document from the Internal Revenue Service (IRS) that confirms that the IRS has no record of a filed Form 1040, 1040A, or 1040EZ for the year requested. This letter is used to verify that an individual did not file a federal income tax return for the specified tax year. Individuals and organizations can request this letter for various reasons, such as providing proof of non-filing for student loan deferment, demonstrating eligibility for public assistance programs, or proving income for mortgage or loan applications.

Tax Account Transcript

The Tax Account Transcript is an IRS document that summarises an individual's tax account information. It includes details such as the amount of taxes due, payments made, and adjustments to the account. It is important to note that the Tax Account Transcript does not include any information about refunds or credits.

To Conclude

It is important to understand the different types of IRS transcripts available as they can be used to verify income, apply for loans, and meet other financial needs. Knowing the type of transcript you need and how to obtain it can save you time and effort. Ultimately, it is important to remember that IRS transcripts are a valuable tool for managing your finances.