Congress Unanimously Passes Legislation to Speed Credit Access via Digital Tax Data; FIN Priority Across the Finish Line
June 13, 2019 – The U.S. Congress today unanimously passed legislation to automate income verification through a modern digital interface at the Internal Revenue Service. FIN has advocated for this legislation since July 2016.
The following statement is attributed to Brian Peters, Executive Director of Financial Innovation Now:
“FIN thanks Congressmen McHenry and Senator Cory Booker for their leadership and commends the whole Congress on this important legislative accomplishment. Digital verification of taxpayer data can help enable convenient and safe access to credit, and we look forward to working with the IRS on its implementation.”
Today the Senate passed H.R. 3151, the Taxpayer First Act, which contains language originally authored by Reps. McHenry (R-NC) and Blumenthal (D-OR) and Sens. Cory Booker (D-NJ) and Mike Crapo (R-ID), the IRS Data Verification Modernization Act of 2017. As part of the loan and mortgage processes for consumers and small businesses, applicants often must complete an IRS form called a “4506-T,” which gives the lender the right to access a summarized version of their tax transcript. This manual process at the IRS takes days, whereas technology companies and financial institutions are using APIs and other ways to leverage data for nearly instantaneous verification and underwriting. The legislation would automate income verification through a modern digital interface at the IRS.