Buying or Refinancing a Home? Here’s What to Know About Your Tax Documents

Buying a home (or refinancing one) comes with a lot of moving parts. Somewhere between interest rates, paperwork, and emails flying back and forth, your lender is probably going to ask for your tax returns. Totally normal.

What’s not always clear is how that process actually works on our end and why sometimes it doesn’t move as fast as your lender might like.

Let’s walk through it.

Why We Can’t “Just Send It Over”

This is the part that surprises people. We are legally required to protect your tax information. There’s a federal law — Internal Revenue Code §7216 — that makes it a criminal offense for a tax professional to share your tax return information with a third party without your written permission.

Not verbal.
Not “they said it was okay on the phone.”
Not a quick email request from your lender.

Written authorization. Every time. And yes, that includes confirming whether you’re even a client.

That said, the fastest option is often simply providing the copies you already have. Your completed tax returns are typically available digitally in your client portal, and many clients also already have paper copies we previously provided. In most cases, you can send those directly to your lender without waiting on our office. 

If duplicate copies or additional document requests are needed from our team, please note that additional fees may apply.

So if your lender is waiting on documents and it feels like things are stalled, it’s not because we’re dragging our feet. It’s because we’re following the law and protecting your information in the process.

What You’ll Need to Do

If you’re entering the mortgage process, here’s how to keep things moving smoothly:

1. Let us know early.
   As soon as you know you’ll need tax documents, reach out. Early notice makes a huge difference.

2. Complete the authorization form.
   We’ll provide a simple form that tells us exactly what we can release and who we can send it to.

3. Give us a little time.
   We move as efficiently as possible, but last-minute requests can create unnecessary stress (for everyone involved).

Once everything is in place, we’ll send your documents securely through our portal, not email. That’s intentional. Your Social Security number and financial details deserve better than an unencrypted inbox.

A Few Things We Won’t Do (And Why)

There are a couple of common requests that come up during the mortgage process that we simply can’t fulfill:

“Comfort letters” about your future income
We prepare tax returns based on what already happened. We can’t predict whether your income will continue or guarantee future earnings.

Altering or amending returns to help you qualify
Your tax return reflects your actual financial situation. We don’t adjust numbers to meet loan requirements.

Rush, after-hours turnaround
We keep business hours for a reason. Planning ahead is the best way to avoid delays.

If Your Lender Is Pushing Back

Occasionally, lenders will say something along the lines of, “Your accountant is holding things up.” That can be frustrating to hear.

In most cases, what’s really happening is that we’re following legal and ethical guidelines that lenders may not always explain clearly. If something feels off, just reach out to us directly. We’re happy to walk you through what’s going on and help keep things on track.

We’re On Your Side

At the end of the day, we want the same thing you do — a smooth, successful closing.

The easiest way to make that happen? Keep us in the loop early, complete the authorization process, and give us a little breathing room to do things the right way. It might not be the fastest route, but it’s the one that protects you.