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Lender wants a statement from my CPA but I don't have one. I'm a independent software developer My business expenses come to less than 500 a month, if that and I don't itemize my personal expenses because I don't qualify. I'm wondering if they want to verify that the tax returns are legitimate. It has occurred to me that they only have my word on what I paid.
I suspect that what your lender is asking for is a Profit and Loss Statement for your business. Maybe a Balance Sheet, too.
That has nothing to do with your tax returns.
Clarify exactly what the lender is looking for, ask if they must be prepared by a CPA (a bookkeeper will be cheaper, but may not be acceptable for the lender) and then go from there.
Lender wants a statement from my CPA but I don't have one. I'm a independent software developer My business expenses come to less than 500 a month, if that and I don't itemize my personal expenses because I don't qualify. I'm wondering if they want to verify that the tax returns are legitimate. It has occurred to me that they only have my word on what I paid.
Any advice/thoughts from anyone.
Thanks in advance.
Does anyone besides you prepare your taxes? If you incorporated, who did that for you? Can you prove two years' Self-Employed via Articles of Incorporation, K-1, etc? These things usually mitigate the no-CPA thing.
We are buying, wife is self-employed. We had to show taxes for the 2 prior years, and a P&L for this year. You have to document all sources of income. Often a letter will suffice.
You can get a transcript of your tax account online or by mail from irs.gov.
Lenders already do this.
The purpose of contacting the CPA is to verify the business is what the borrower states it is. There are acceptable substitutions. Transcripts do not verify much other than amount of earnings.
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