07 Feb

Why Tax Reporting Services are Critical?

Tax Reporting Services

A loan closing procedure is a complex task that depends on the availability of various types of reports. One of the main reports that are needed to accelerate this process is the accurate tax information about the subject property.

A professional Tax Reporting Service, generally offered as a part of the consolidated professional title service solution, checks all the taxation documents pertaining to a specific property. This makes the property totally free from various penalties at the time of sale. Some of these liabilities could include:

  • Penalties on delinquent property tax
  • Indemnity on skipped installments
  • Penalties on missing jurisdiction info
  • Damages due to other unpaid taxes

However, an organization that offers professional Tax Reporting as a service can provide its clientele with customized reports that explicitly cater to their unique requirement. The relevancy of the information in the report enables the clients to make quick yet informed business decisions. In addition, there are various other advantages that can be provided by them.

The benefits of the security offered by accurate Tax reports can translate into tangible savings during the new loan boarding process as well as the closing process. Some of the features of such a service can include the following:

  • Verification of erroneous or missing tax information
  • Verification of seller’s name and other info as per tax records
  • Electronic submissions that comply with all latest regulations
  • Tax filings with state and federal tax authorities
  • Due Diligence services that protect against penalties

In addition to these advantages, there exist a host of other reports and services that can be provided by authorized Tax reporting firms, and the significant ones are discussed below.

Tax liens

This is a lien imposed upon an estate to secure the payment of taxes. A tax lien can be imposed for tax evasions owed on property. In order to vet the new loan applications on tax liens, the professional companies access the required data from tax authorities based using unique info such as the identification number and the address of the property. Once done, they validate the data for accuracy, and inconsistencies are flagged off to be rechecked. The research audit trail also includes a verification of legal identifiers which can check for the current status of the tax payments.

Tax certificates for pre-closures

Tax Certificates depicting the payments of real estate property taxes play an important role in determining the status pre-closure of mortgage loans. Using their consistent reports based on title examiners across the states, the companies can provide maximum clarity on the Tax certificates for this purpose.

Portfolio analysis

A comprehensive report detailing the tax liabilities on the entire portfolio of the property, being considered for loan or auction, can maximize the accuracy on valuations, providing a viable advantage to the bidding process. Such on-demand information can be really helpful in identifying the opportunities to avoid penalties due to possible tax evasions.

Other liabilities

A detailed report on other types of liabilities such as open permits, municipal liens (sewer & water), code violations, or any other evaluations prior to closing that can potentially result in significant penalties can be mitigated.

The autonomous audits performed to verify the consistency and quality of these reports apart from their conformance to the state and federal regulations duly ensure their quality. Various government and private agencies apart from lending institutions can utilize these tax reports to minimize their risks while dealing with felonious property tax issues.

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