A common question we receive from clients is in regards to a “one year” review of the most recent tax year on their borrower’s self-employed income versus a “two year” review.
I sent in 1065/1120S/1120 but only sent one year of tax returns. Why did your system give me “no income” and require 2 years?
Our system is designed to default to a two-year review of self-employed income, as this aligns with standard agency guidelines. If a business may qualify for the one-year tax return exception, it is the responsibility of your team to confirm eligibility.
To apply the one-year return exception, your team should verify that:
- The business has been operational for at least five years,
- The income is stable, and
- The AUS findings support the one-year documentation exception.
Please note, our system cannot make this risk determination on your behalf or change the response using the one year exception.
Here is a quick video demonstrating how to make this change in the system. It is important to note that since our system will default to a two-year review, best practice is to upload all of your documents and let IncomeXpert create the incomes for you (this eliminates duplicate entries). Once your review is complete and the file is returned, you can then go in and select which businesses need a one or two-year review.
Need Help?
If you have any questions or need support, contact the Blueprint team at:
info@getblueprint.io
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Closed: Weekends and U.S. federal holidays