Internal Revenue Service (IRS)

Updated May 17, 2026

The Internal Revenue Service (IRS) is the revenue service of the United States federal government. It is responsible for collecting taxes and administering the Internal Revenue Code.

In mortgage lending, the IRS plays a role in income verification. Lenders often require borrowers to provide IRS tax transcripts (e.g., Form 4506-C) to verify reported income, especially for self-employed borrowers or those with complex income structures. This helps ensure the accuracy and stability of the income used for qualifying a mortgage loan.