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Question
what information is included in a tax transcript? if i am undergoing a security clearance investigation for a government position, what information does the IRS provide to the investigating agency?
Submitted: 68 days and 1 hours ago.
Category: Tax
Value: $30
Status: CLOSED
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Country/State/Province of question: Colorado/US Federal Taxes
Already Tried:
A couple online document search services, but they have been unable to provide any information on my tax history.
Posted by
Merlo
68 days and 1 hours ago.
Answer
Hello Brajen,
A Tax Transcript is not an actual copy of your tax return, but it is a computerized printout that will show the line by line entries that were made on your tax return for any given year.
So basically the transcript would show the amount of taxable income that you reported from wages, self employment income, capital gains, interest, etc. It would also show the total of itemized deductions you claimed and any other credits you may have claimed, such as tuition expenses, child care expenses, earned income credit, etc. And it would then show your net tax liability for that year.
So it is just basically a recap of what income and deductions you reported to the IRS for any given year.
If this was helpful please press the Accept button. Positive feedback is also appreciated.
Thank you Brajen and let me know if you have more questions.
68 days and 1 hours ago.
Reply
Regarding the second part of the question, could you please advise what information the IRS provides to government agencies conducting security clearances? Thanks.
Posted by
Merlo
68 days ago.
Answer
Hello again Brajen,
The only information that will actually be provided by the IRS will pertain to your tax account. It will show whether or not you have been paying taxes on a regular basis or if you have ever had problems in prior years with taxes not being paid or fraudulent returns being filed.
There are many other facets involved with security clearance for a government job, so they will be getting information from other agencies, not just the IRS. Your security clearance will include a criminal background check and also a credit report check. But this information will come from different agencies, and not from the IRS.
If this was helpful please press the Accept button. Positive feedback is also appreciated.
Thank you Brajen.
68 days ago.
Reply
Will the information show if I was late filing a return, even if i didn't owe money? Thanks.
Accepted Answer
Hello again Brajen,
The Tax Transcript will show the date the return was received by the IRS. So if you filed a return late, that would be evident by the date shown on the transcript.
However, if you owed no additional taxes, then filing a late return is not going to keep you from obtaining security clearance for a job. In fact even if you had owed taxes with the late filing, as long as they were paid along with any penalties and interest, this would still not be a disqualifying factor.
The only time a tax issue would be a factor is in a case where you owed past due taxes which are not being paid and the IRS has liens or levies on your assets. Filing a late return should not be of any concern. It happens much more often than you may realize, and is not really any major issue.
If this was helpful please press the Accept button.
Thank you Brajen.
Expert:
Merlo
Pos. Feedback:
99.8 %
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Answered:
9/15/2009
Accountant
25+ years tax consulting. Specializing in returns for US citizens living abroad
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