Who Can Ask for Tax Information?
- Creditors can ask for tax information for the purpose of extending you a loan such as a mortgage. Lenders request to see your income tax returns and documents or other income documents from the past year or two to verify how much money you make. Lenders can also request W-2 statements from the past two years if you held multiple jobs over the last 24 months.
- Landlords can ask for tax information to verify your employment and ability to make rent payments. Tax information is also used by landlords to evaluate your employment stability as well as your income stability. For instance, if your tax returns indicate your income has decreased over the years, a landlord may question your ability to make the rent if the trend continues.
- Courts ask for tax information when verifying income for child support and alimony payments. Tax information from all parties are necessary to calculate support obligations as well as verify a party's financial capacity to pay. Courts request tax information when making an initial support determination as well as when a party requests a support modification.
- Your employer must submit tax information to the Internal Revenue Service on your behalf. They request tax information related to withholding amounts and number of dependents you claim on your income taxes. Your employer is required to withhold from your pay federal and state taxes, Social Security taxes and other court-ordered withholdings such as garnishments. They ask for tax information to ensure they withhold the correct amount from your check.
- Tax preparers ask for tax information to accurately prepare your income taxes. They ask for employee information such as W-2 statements. If you are self-employed, they request 1099 forms, expense records, receipts and assets used for business purposes. If you receive income from sources other than employment, tax preparers ask to see unemployment insurance records, pension and retirement income records as well as income received from savings and investments.
Creditors
Landlord
Courts
Employer
Tax Preparers
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