Allowable Age of Federal Income Tax Returns
For some types of sources of income, Fannie Mae requires lenders to obtain copies of federal income tax returns (personal returns and, if applicable, business returns). The “most recent year’s” tax return is defined as the last return scheduled to have been filed with the IRS.
| If Today’s Date is.... | Then the Most Recent Year’s Tax Return would be... |
|---|---|
| February 15, 2020 | 2018 |
| April 17, 2020 | 2019 |
| December 15, 2020 | 2019 |
The following table describes which tax-related documentation to obtain depending on the application date and disbursement date of the mortgage loan.
| Application Date | Disbursement Date | Documentation Required |
|---|---|---|
| October 15, [current year minus 1] to April 14, current year | October 15 [current year minus 1] to April 14, current year | The most recent year’s tax return is required. The use of a Tax Extension (IRS Form 4868) is not permitted. |
| April 15, current year to June 30, current year |
|
|
| July 1, current year to October 14, current year | The lender must obtain
|
|
| April 15, current year to October 14, current year | April 15, current year to December 31, current year | |
| January 1, [current year plus 1] to April 14, [current year plus 1] | The most recent year’s tax return is required. The use of a Tax Extension (IRS Form 4868) is not permitted. |
Exceptions
- For business tax returns, if the borrower’s business uses a fiscal year (a year ending on the last day of any month except December), the lender may adjust the dates in the above chart to determine what year(s) of business tax returns are required in relation to the application date/disbursement date of the new mortgage loan.
- For loans with income validated by DU, lenders may rely on the age of tax transcript methodology provided by the service. See B3-2-02, DU Validation Service.
For additional information, see B1-1-03, Allowable Age of Credit Documents and Federal Income Tax Returns.