Transcript Rejected by IRS

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    Hello everyone,

    Here is a our story in a nutshell

    1/15 Workshop in Las Vegas
    2/5 First appointment with MC
    3/19 Second Appt with MC
    4/30 Third Appt with MC
    6/3 Fourth Appt with MC
    6/21 Documents sent to naca uw for the first time
    7/10 Naca qualified
    7/11 homebuying workshop
    7/19 Our offer was accepted by the buyer
    7/24 Inspection done
    8/2 Appraisal Done
    8/5 Aprraisal came in 2k more than our offer (yay)
    8/5 Bank App submitted
    8/10 Received our first set of lender conditions.
    8/12 Submitted conditions
    45 day mark will be 8/30/19

    We were messaged today from our MC stating that one of our W2s were illegible and that my fiance’s tax transcript from 2018 was rejected from the IRS. “The IRS has identified possible theft/fraud of the taxpayers identity. Please have your borrower contact the IRS Identity Protection Security Unit.” Has anyone else got this back? How do we fix this? My fiance called the IRS, and they told him that he needs to write a letter, and turn around is 180 days. I don’t understand. We do not have that time. We were able to get his tax transcripts mailed to him with no problems in March/April from the IRS. Our closing coordinator has changed 3 times, and our latest one has not returned any messages as of yet. Can anyone recommend or suggest anything? TIA

    (We had multiple meetings with our MC because my fiance changed jobs in April causing the delay.)


    If any of your files is is illegible it’s often a scanning issue and bringing the hard copy into your local office for your MC to scan it until it works is a good idea.

    You also don’t have to have any IRS information mailed to you because they have the last few years of transcripts online for you to download and print immediately.

    Unfortunately this is not a naca or boa issue. The illegibiltity is a naca issue which can be taken care of as I mentioned above. If the IRS flagged your transcripts there is nothing you can do but play by the rules of the IRS. Because the IRS is communicating this you would have run into this for any loan you apply for regardless of situation. It’s better to find out now.


    Hello lasvegasj1413,

    It appears, like it or not, that you are going to have a delay on your hands.

    If there appears to be an identity theft issue with the IRS, you one and only option is to work with them to resolve it. I’m guessing that since you weren’t apparently aware of the issue before the transcript request that there had no been any attempt to open any credit accounts in her name. That in turn suggests that either someone may have filed a phony tax return in her name to try and steal the refund or her Social Security number has been used by an undocumented immigrant for work purposes.

    Regardless of what happened, it is going to cause you a delay, even if you were to go elsewhere for a loan. Even changing her status from co-buyer to household member will not affect the situation. Your one and only option is to work with the IRS to clear this up. I’m sorry you have run into this unforeseen problem.

    Tim Trumble
    Online Operations, NACA


    Update: W2s are fixed. Not sure why it was flagged in the first place. Our MC was the one who scanned them in initially. After reading the response earlier, I was loosing hope. I made my fiance call every IRS person he can speak to. Finally he was transferred to the fraud dept, and got to speak to someone after being on hold for an hr. They stated that he did not have any flags on his account/social security number. It was most likely flagged because it was a third party requesting for his transcripts, which IRS no longer allows. So after reading old blogs in the forum, I have seen this happen to others. He called our MC back, and notified her what the IRS fraud department told him. She stated that she will speak to our CC and we should get a response by next Wednesday. So now all we have to do is wait. We are seriously lucky to get our MC Laila in the Las Vegas office. I give her 5 stars for not showing how overworked she is. We’ve had our differences, and in the end, I appreciate her so much. I am not sure why his tax transcripts were flagged for fraud when mines were requested smoothly. We filled out the same paperwork. According to other blogs, it might have been due to how he filled out his 4506-T?

    As of right now, we have no other conditions. We are expected to close on 8/30, but not sure how quick we can get this fixed.

    Ms. J


    How were the tax returns/transcripts requested? You should never have to have them requested by a 3rd party and as I mentioned earlier they are available for you to download and print immediately on

    I would put a red flag up myself on anyone who says you can’t or don’t have to do it yourself.


    For me, they were requested by online and logging in. For my fiance, he had to request it by mail. He tried setting up an account with the IRS, but he cannot (for the life of him) pass the screening questions. I honestly have no clue why. It asks simple questions like social, address, and personal questions he should know. But for some reason he cannot pass it. His full name is Nicholas, and prior to me coming into his life, he put Nick on his taxes. (Yes, I scolded him.) He was also using his parent’s address and renting a room at a friend’s house. So his life was all messed up and he is confused on what the name and addresses should be. So therefore, by mail. I will try to have him create a user again, but they only allow 1 try per day… and to this day he has not been successful. Luckily, I have gotten us this far. Calling the IRS was probably the most tedious thing he has done so far. So most likely because he received the tax transcripts by mail, might be what is causing him to get this red flag from the IRS?

    And yes I agree with you, that it is a simple process of getting a log in to the IRS website. I love my fiance to death, but he is definitely challenged when it comes to their website.

    Thank you!


    I would say using nick vs nicholas is what threw the flag up. Then of course using different addresses and multiple incorrect tries at answering the questions certainly didn’t help. That all right there is the issue. Requesting by mail should not be a problem it’s just not efficient. When nicholas requested nick’s transcript and couldn’t get the information right the IRS said this is fraud. I would put money on it.

    But it sounds like you are on the right track. I hope everything works out for you. Keep us updated.


    Update: we received UW ctc today! Looks like we will be closing on time! 🙂 thank you for this forum!


    Another positive story! Congratulations!

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