I've been asked to bring my 1099's to a dealership....Is that normal? Would the lender that is financing me check with the IRS to confirm the validity of my tax documents?
2007-08-18 04:27:18 · 5 answers · asked by Anonymous in Cars & Transportation ➔ Buying & Selling
I worked in the sub prime auto lending industry for 5 years. Auto loans are usually full documentation so they just verify employment and a pay stub (or 1099 in your case). If the lender suspects fraud they can and WILL request you to sign a 4506 or 4506T form which tells them exactly how much you claimed for income that year and what schedules you filed.
I currently work in the mortgage banking industry. Our bank requires most borrowers to sign a "4506" as well. If the underwriter suspects fraud they will execute the form with the IRS to verify your pay stubs match up... this is also done in the case of self employed individuals. If you getting 1099'd you might fall into that arena. It's really easy to claim you're self employed. Just go to Staples and pick up some blank 1099's. However, when we verify with the IRS they won't show you filed self employed taxes (schedule C).
2007-08-18 12:51:22 · answer #1 · answered by Richard S. 3 · 0⤊ 0⤋
Are you planning on faking the documents?
No, the dealership is not going to check with the IRS. They do however need to see your 1099's in order to show some proof of income. Since you must not be your regular weekly paycheck type of guy of which everything could be verified with current pay stub.
Still perplexed by this question...why would you ask it, unless something is not right about your documents or you are planning on doing something illegal just to obtain an auto loan. Or you have deceived the IRS in some way and don't want anything to jeopardize your chances of not getting caught. Hope not.
Take care.
2007-08-18 11:38:45 · answer #2 · answered by Robert C 6 · 0⤊ 1⤋
No, the IRS will not discuss your tax return or income with anyone.
It sounds as if you are self-employed. The bank or finance company needs to verify your income in order to grant a loan. A common way to do that is to request copies of tax returns and tax documents if you are self-employed. If you had a regular job they would simply verify your employment with your employer. Since you're self-employed there's no way for them to do that.
2007-08-18 14:18:27 · answer #3 · answered by Bostonian In MO 7 · 0⤊ 0⤋
No, the only time the check with the IRS is if you give a cash down payment of over $10,000.00
What they do is try to contact your employer to verify you work there, if something is wrong the bank may ask your employer to verify the information you provide
if you do not have an employer and your credit is good they will just look at it, if it is bad they will try to verify by bankstatement or other ways!!
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2007-08-18 11:34:53 · answer #4 · answered by gtamayo1 4 · 0⤊ 0⤋
The IRS talks to nobody in relationship to your tax return.
2007-08-18 11:36:27 · answer #5 · answered by acmeraven 7 · 1⤊ 0⤋