CUNA and other organizations wrote to Acting IRS Commissioner David Kautter Friday with concerns that a recent change to the tax transcript process could adversely impact the residential mortgage industry.
“The industry agrees with the need to protect taxpayer information and has offered on multiple occasions to work with the IRS to strengthen protocols while ensuring access to credit for consumers who desire to purchase a home,” the letter reads. “However, the recent implementation of the new multifactor authentication process was flawed in its design, implementation and communication with affected parties.
“Immediate action needs to be taken by the IRS to rectify the recent changes to avoid a material impact to taxpayers who are borrowing money to finance the purchase of their home,” the letter adds.
Key concerns highlighted in the letter include:
“One possible solution would be to roll back the recent implementation and allocate sufficient time for the IRS and affected parties to evaluate and test proposed changes,” the letter reads. “Without an immediate resolution, we believe that the IRS change will begin affecting consumers’ ability to borrow funds to purchase homes.”