action required: taxpayer first act and taxpayer consent forms
Among the provisions of the Taxpayer First Act (the "Act"), signed into law on July 1, 2019, is the requirement for taxpayers to provide their permission, prior to the sharing or redisclosure of their tax return information. Such component of the Act goes into effect on December 28, 2019.
Important: Loan files for CHFA loans with a settlement date on or after December 28, 2019, must include a signed taxpayer consent form which meets Act requirements, as well as any related insurer, guarantor, Freddie Mac and/or Fannie Mae requirements, as applicable (the
The Internal Revenue Service does not, at this time, have a Taxpayer Consent
form relating to this component of the Act. However, the Mortgage Industry
Standards Maintenance Organization (MISMO®) has issued Taxpayer Consent
language. Information regarding such language, including relating to terms
of use, is available here.
Participating lenders may also prepare their own Taxpayer Consent form and should work with their legal counsel and/or compliance department regarding the Taxpayer Consent form and overall compliance with the Act.
CHFA loans closed on or after December 28, 2019 that do not include such Taxpayer Consent in the loan file will be subject to suspension. Please consider including Taxpayer Consents for loan files with earlier settlement dates as well, to help facilitate and further your organization’s preparedness for this new requirement.
Please contact us with any questions.
CHFA Home Finance
303.297.7376 or 888.320.3688 Denver
970.241.2341 or 800.877.8450 Western Slope