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.
For more information contact [email protected]
Access Information for Members
MISMO Members can access the standards within the Resource Library housed on MISMO's Collaboration Site, "MISMO Connect" here.
Access Information for Non-Members
Innovation Investment Fee Payers can access the Taxpayer Consent Language for Commercial Usage here.
Non-Members can access the standards HERE.
Disclaimer
AUTHORIZED USAGE: The release and use of the MISMO
Taxpayer Consent Language and related resources are governed by the
MISMO Intellectual Property Rights (IPR) Policy and related licenses.
This MISMO Product is subject to the MISMO Product Distributor License Disclaimer
and is provided "as is" with no warranties of any kind. For more
information on the MISMO IPR policy and related licenses, please click here.
Background
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.