TAX TIME AND THE GOVERNMENT SHUTDOWN

As a result of the ongoing Federal Government shutdown, NACA will delay the requirement of Tax Transcripts for new Members.  Please note that the requirement for a tax transcript for the past two years’ returns is only being DELAYED, not SUSPENDED. All affected members will need to obtain tax transcripts from the IRS as soon as the shutdown ends or an appropriations bill is passed that allows the Treasury Department/IRS to re-open.

This delay does not apply to Members that have not been able to verify they filed at previous requests.

Members must still submit their completed and signed tax returns from the past two years. For the time being, we will accept a signed statement that reads “I attest the attached 1040s are what I filed, and I will obtain transcripts when they become available” in lieu of the accompanying transcripts.

Reminders:

  • 2018 W2s are still Required as of 1/31/2019 for all Members that had W2 income in 2018.  This is for both Credit Access and Qualification submissions.
  • 2018 1099s are still Required as of 1/31/2019 for all Members that had 1099 income in 2018.  This is for both Credit Access and Qualification submissions.
  • All Self Employment Members must have 12 months bank statements in their file to determine affordability.
  • THE GOVERNEMNT SHUTDOWN HAS NOT CHANGED THE FEDERAL TAX FILING DEADLINE OF APRIL 15TH. 2018 Form 1040s are required to be submitted to your NACA file as soon as either (1) indication taxes have been filed (IRS deposit check, payment check, payment to tax preparer indicated in bank statements, tells their counselor they filed, etc.) or (2) by April 15th, 2019 , whichever comes first.
  • We do not accept the filing for an extension (form 4868) as a filing.  Most people that file for an extension wind up owing taxes and we need to verify they have the minimum required funds to purchase after taxes are resolved.
  • PLEASE REMEMBER that NACA employees are neither authorized nor qualified to give tax advice.
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2 Comments

  1. Meka
    Posted March 30, 2019 at 5:55 pm | Permalink

    Question….if you owe the IRS and made payment arrangements….Does this mean that NACA will not proceed until taxes have been paid? Can you still make it to qualify for a NACA loan if you owe that IRS and current on the payment arrangement

    • Posted April 15, 2019 at 5:55 pm | Permalink

      Hello Meka,

      It depends on the individual situation. We have tried to loosen the restrictions a bit regarding past due taxes, but it can be a tricky situation.

      Tax liens or tax debts can become super liens that may force a Member to sell the home they purchase unless the Member addresses and resolves them. Therefore, all tax liens and tax debts must be reviewed by management before the Member is Debt Qualified. A Member is more likely to be ready for home ownership when there is a very small balance owed and the lien holder has agreed to a payment plan.

      Tim Trumble
      Online Operations, NACA
      ttrumble@naca.com

      If the tax lien or tax debt is small and the Member has proof of a repayment plan that has been in existence for at least 6 months with the Member making on time payments, the Counselor may use his/her discretion and have the case go to Management for approval prior to being Debt Qualified. It is possible that a Member may be qualified with a larger tax lien. It will depend on the circumstances and the agreed payment plan must have been in place at least 12 months with a significant amount paid. The previous year’s income taxes must be verified paid in full prior to qualification. They may not be added to a previous tax debt in a payment plan.

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