4506-C vs 4506-T: Key Differences Explained (2026)

Published July 28, 2024 · Updated May 26, 2026

If you work as a notary signing agent, you will run into IRS tax transcript requests during loan signings. Three forms show up regularly: 4506, 4506-T, and 4506-C. They sound similar but serve different purposes, and mixing them up delays closings. Here is what each one does and when you will see it.

Form 4506: Full Copy of Tax Return

Form 4506 requests an actual photocopy of a previously filed tax return, including all schedules and attachments. Lenders sometimes need this for complex loan situations, audits, or legal proceedings.

What It Costs and How Long It Takes

The IRS charges $30 per return copy (as of January 2024). Processing takes up to 75 calendar days. The form requires the taxpayer’s name, Social Security number, address on the return, the tax year requested, and a wet signature.

Because of the cost and wait time, most lenders prefer transcripts instead. You will rarely see Form 4506 in a standard mortgage signing package.

Form 4506-T: Tax Transcript (Free)

Form 4506-T requests a tax transcript, not a full return copy. Transcripts summarize the key line items from a filed return. The IRS offers several transcript types:

• Tax Return Transcript: shows most line items from the original return (this is what mortgage lenders usually want)
• Tax Account Transcript: shows adjustments made after the original filing
• Record of Account: combines return and account transcript data
• Wage and Income Transcript: shows income reported on W-2s, 1099s, and similar forms
• Verification of Non-Filing: proves the taxpayer did not file for a given year

Form 4506-T is free. Transcripts arrive faster than full return copies, often within a few weeks. The borrower specifies which transcript type and which tax years they need, then signs the form.

This is the form you will see most often in loan signing packages. Lenders include it so they can verify the borrower’s reported income against IRS records after closing.

Form 4506-C: Third-Party Consent for IVES

Form 4506-C is the newest of the three, introduced in 2020. It allows a third party (usually a mortgage lender) to request tax return information directly from the IRS through the Income Verification Express Service (IVES). The taxpayer signs the form to give consent.

The key difference from 4506-T: Form 4506-C is designed for institutional, bulk processing. Lenders use it to pull transcripts electronically through IVES rather than waiting for the IRS to mail paper transcripts. This speeds up income verification during mortgage underwriting.

As a signing agent, you may see 4506-C in refinance or purchase packages. Your job is to make sure the borrower fills in their information correctly and signs where indicated.

Quick Comparison

Here is how the three forms stack up:

• 4506: Full return copy. $30 fee. Up to 75 days processing. Rare in loan packages.
• 4506-T: Transcript only. Free. Faster processing. Common in loan packages.
• 4506-C: Third-party IVES request. Free. Electronic delivery. Growing use in mortgage industry.

Tips for Signing Agents

When borrowers need help with these forms during a signing:

• Check that the name and SSN match the borrower’s documents exactly.
• Make sure the tax year fields are filled in (lenders usually request the last two years).
• Verify the borrower signed and dated the form. Unsigned 4506-T and 4506-C forms get rejected.
• Do not give tax advice. If the borrower asks which form they need, direct them to their lender.

Common Mistakes

• Wrong tax year: Borrowers sometimes enter the calendar year instead of the tax year. If they filed 2024 taxes in April 2025, the tax year is 2024.
• Missing signature, the most common reason these forms get kicked back. Both spouses must sign on joint returns.
• Illegible handwriting, the IRS processes these forms electronically. If the SSN or name is hard to read, the request fails.

Related Reading

• Notarial Certificates on Loan Documents: Tips for Signing Agents
• What Is a Notary Signing Agent?
• Notary Signing Agent Jobs: Where to Find Work

Frequently Asked Questions

Can a borrower get their own transcript without a form?

Yes. Taxpayers can download most transcripts for free from the IRS website using their IRS online account. The Get Transcript Online tool provides the same information as Form 4506-T without needing to mail anything. However, lenders still need a signed 4506-T or 4506-C to request transcripts directly from the IRS for verification purposes.

How long is a signed 4506-T valid?

The IRS accepts Form 4506-T if it is postmarked or submitted within 120 days (roughly 4 months) of the signature date. After that, the form expires and the borrower must sign a new one. Most lenders time their requests so the form stays within this window.

What happens if the borrower refuses to sign?

Lenders require signed 4506-T or 4506-C forms as a condition of loan approval. If a borrower refuses, the lender typically will not fund the loan. Signing agents should note the refusal in their signing report and contact the lender’s closing department.

Does the signing agent need to notarize these forms?

No. IRS Forms 4506, 4506-T, and 4506-C require a signature but not notarization. The signing agent’s role is to present the form, ensure it is filled out completely, and verify the borrower signed it.

What is IVES and how does 4506-C use it?

IVES (Income Verification Express Service) is an IRS system that lets approved lenders and other institutions request tax transcripts electronically. When a borrower signs Form 4506-C, they authorize the lender to submit the request through IVES, which returns the transcript within 1-2 business days instead of weeks.