Amid Rising Loan Defaults and a Risky Lending Climate, Tax Guard Offers Solutions for Lenders
Tax Guard Blog
by David Bohrman
1M ago
The lending landscape is in a state of transformation, and with rising loan defaults, lenders are facing new challenges.  According to the latest from S&P Global Ratings, the US loan default rate is forecasted to hit an all-time high this year. In October 2023, the leveraged loan default rate sat at a still-elevated 1.9%. But according to projections, the leveraged loan default rate could climb to 3% by September 2024 as economic growth slows.  These increased loan defaults will likely be a result of macroeconomic conditions, as inflation, while slowly cooling, is still running ..read more
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How Tax Guard Lends TAB Bank A Helping Hand
Tax Guard Blog
by David Bohrman
6M ago
TAB Bank Needed An Assist   Since 1998, TAB Bank’s invoice factoring services have transformed how trucking businesses access working capital.  TAB Bank was utilizing an internal process for managing IRS 8821 forms, collecting IRS information on prospective clients, and ongoing credit monitoring. Managing all of these activities internally generated two key issues for TAB.   Tag-Teaming Form 8821  The first issue was the time delay when submitting 8821 forms for prospective clients. “Time is of the essence when you’re trying to fund someone with a cash flow probl ..read more
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Cogency Global Acquires Tax Guard to Expand Footprint in Compliance and Financial Services
Tax Guard Blog
by Tax Guard
6M ago
NEW YORK, September 14, 2023 (Newswire.com) – New York-based Cogency Global Inc., a global provider of corporate compliance and transactional legal support services, announced today that it has acquired Colorado-based Tax Guard, LLC., a leading tax risk due diligence and monitoring services provider, from Falfurrias Capital Partners. Terms of the transaction were not disclosed. Raymond James served as Tax Guard’s financial advisor. This strategic combination aims to expand Cogency Global’s comprehensive suite of compliance services and solidify its presence in the financial ser ..read more
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How Byline Bank is Able to Help More Small Business in Less Time
Tax Guard Blog
by David Bohrman
8M ago
Meeting the government’s high standards is no small task for SBA lenders  Chicago-based Byline Bank is the nation’s second largest Small Business Association (SBA) lender, with close to $1 billion in assets. To realize this success, Byline Bank has had to navigate a substantial amount of risk. After all, SBA lenders primarily work with many startups and early stage small businesses, who often are newer borrowers. SBA loans are backed by a government guarantee, which grants lenders a degree of security when doling out riskier small business loans. The tradeoff? Increased government scruti ..read more
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How BayFirst National Bank Saves Time with Tax Guard
Tax Guard Blog
by David Bohrman
10M ago
Errors and delays threaten struggling small businesses  BayFirst National Bank, headquartered in St. Petersburg, Florida, has had its sights set on becoming the premier bank of the Tampa Bay area since 1999. The bank has grown from an independent community bank to a top nationwide SBA lender with a team of more than 200 residential mortgage originators. Recently, many small businesses with thin credit profiles have needed funding as soon as possible to survive. BayFirst was looking to rise to the occasion and confidently offer rapid assistance to as many borrowers as possible.  ..read more
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How Kapitus Prevents Fraud with Tax Guard
Tax Guard Blog
by David Bohrman
10M ago
Fraudsters Present A Big-Time Concern For Small Business Lenders  Kapitus, a small business lender based in Arlington, Virginia, needed assistance in reliably identifying applicant tax debts. The need to collect tax transcripts to verify borrower information and prevent potential loan fraud was top of mind for this lender. Countering attempted fraud isn’t just a concern for Kapitus—it’s a fundamental concern for all savvy lenders. “In our industry, we see a lot of fraud. It is fairly easy to doctor a tax return,” said Steven Podhorzer, Senior Vice President of Underwriting at Kapitus.&nb ..read more
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The Truth About the IRS and E-Signatures
Tax Guard Blog
by David Bohrman
1y ago
The IRS is tasked with a challenging and vitally important job – protecting American taxpayers’ most private data, their personal and business tax records. Appropriately, the IRS has high-security standards, one of which is creating a significant but understandable barrier when it comes to third parties obtaining tax records on a taxpayer’s behalf. Let’s dig into the current state of the IRS’ electronic signature (e-signature) options and what the future has in store for lenders.  In 2021 the IRS rolled out a new option that allowed for e-signatures on Forms 8821 and 2848, forms that ena ..read more
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“No Record Found” – Why the IRS Hasn’t Processed Your Borrower’s Tax Information
Tax Guard Blog
by Jess Bramlett
1y ago
The underwriting process can be filled with unexpected twists and turns impacting borrowers and lenders alike. One prominent example: copies of tax returns provided by clients are not always a reflection of what the IRS has on record. The savviest lenders avoid accepting falsified documents and fraudulent data by working with a trusted vendor to secure income and compliance information directly from the IRS system.  Verifying a borrower’s income with the help of IRS tax return transcripts sounds simple, but unfortunately, the reality is often far more complicated. There’s no shortage of ..read more
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Tax Guard: The Lifeline Into the IRS’s Technology Troubles
Tax Guard Blog
by Tax Guard
1y ago
Despite technological advances, the IRS is a slow-moving bureaucracy While the IRS collects approximately $4.1 trillion a year (about 96% of the U.S. gross revenue), including almost every business and individual in the U.S., its ability to process this amount of data quickly and efficiently is massively impacted by consistent underfunding and understaffing issues. The agency is outfitted with antiquated technology, hardware, and code, dating back to the JFK administration.  While the IRS has been attempting to join the 21st century for years, the $80 billion recently allotted to the ins ..read more
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The Tale of IRS Form 4506-C vs. IRS Form 8821 for Tax Return Transcripts
Tax Guard Blog
by Tax Guard
1y ago
As a lender, do you know what really happens when you file a tax return transcript request with the IRS for one of your borrowers? It’s quite an adventure. The IRS isn’t exactly on the cutting edge of hi-tech—in fact, with their substantial need for red pens, which allow clerks to circle line items on paper returns to transcribe by hand, they’re practically operating in 1974.  Let’s take a walk through the various processes and compare how lenders and the IRS deal with the Form 4506-C vs. Form 8821 for tax return transcripts to see which one has the optimal results. What is IRS Form 4506 ..read more
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