January 11, 2022

Bulletin 2022-006 2021 Tax Return Requirements

2021 Tax Return Requirements

Newrez Approved Correspondent Clients: please note that applications or note dates on or after April 18, 2022 that require tax returns for income qualification per applicable product guidelines, will require 2021 filed tax returns unless the borrower has filed an extension (IRS Form 4868). For self-employed borrowers who have filed an extension, an unaudited year-end Profit and Loss Statement will be required.

 

Effective Date

 

See grid below for effective dates and requirements.

 

Age of Tax Return Job Aid

 

Allowable Age of Individual Income Tax Returns

Allowable age of Individual Income Tax Returns for borrowers whose income must be documented with tax returns (borrower(s) self-employed and non-self-employed):

  • Self-employed income;
  • Employment by a family member or an interested party to the purchase transaction;
  • Rental income from an investment property;
  • Temporary or sporadic income;
  • Other income sources as identified in the Underwriting Guide.

 

The Note date is based on all documentation in the file (paystub, bank statements, appraisal, etc.).

The “most recent years’” 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 Years’ Tax Return would be……

February 18, 2022

2020

April 18, 2022

2021

December 15, 2022

2021

Application

Note Date

Documentation

10/18/21 to 04/17/22

10/18/21 to 04/17/22
  • Most recent years’ tax return
  • Extension is not permitted

04/18/22 to 06/30/22
  • Previous year’s tax return, if filed
  • If previous year is not filed, obtain previous two years or per DU/LPA

07/01/22 to 10/17/22
  • Most recent years’ tax return

OR all of the following

  • 2020 Extension
  • Previous two years’ tax returns or per DU/LPA
  • Tax transcripts confirming “No Transcripts Available” for 2021

04/18/22 to 10/18/22

04/18/22 to 12/31/22
  • Most recent years’ tax return

OR all of the following

  • 2020 Extension
  • Previous two years’ tax returns or per DU/LPA
  • Tax transcripts confirming “No Transcripts Available” for 2021

01/01/23 to 04/17/23
  • Most recent years’ tax return
  • Extension is not permitted

10/18/22 to 04/17/23

10/18/22 to 04/17/23
  • Most recent years’ tax return
  • Extension is not permitted

See the applicable section of the Underwriting Guide for complete income documentation requirements for all borrowers (self-employed and non-self-employed) whose income must be documented with tax returns.