If you are a regular reader of this blog, you may have noticed that I do not often weigh in with my personal opinion about the IRS. IN this instance, I can't help it. On October 3, 2006 the IRS launched the Income Verification Express Service (IVES). In this amazing example of expanding government, the IRS will now offer immediate electronic delivery of client tax and income information to financial institutions such as mortgage brokers and banks.
The fee for this "service" is $4.50 for each tax return year requested by the lender. Previously this service was provided free of charge. Prior to using the "service" borrowers must first sign Form 4506-T granting permission for a third party to receive the information from the IRS. As a service to our clients and readers, we will immediately post the Form 4506-T on our website for download. Click here for immediate download. Previously, lenders faced a two day wait to obtain this information. It just seems to me that the IRS has just taken a service that was previously offered for free and is now using it to generate revenue.