A Crucial Tax Return Warning for Homeowners That Matters More Now Than Ever

The Internal Revenue Service opened the tax filing season on Jan. 26, and the deadline for filing (without an extension) is April 15.

While you still have time, if you plan on mailing your return, a new rule might hinder the process.

The United States Postal Service (USPS) adopted new postmark rules in December, under which “instead of reflecting the date when you drop your mail in a mailbox or hand it to a carrier, a postmark may reflect when the mail is first processed at a USPS facility,” according to the Internal Revenue Service (IRS) Taxpayer Advocate website.

For homeowners or buyers, a delayed or "lost" return can be particularly catastrophic for those currently in the mortgage application or refinancing process, where up-to-date tax transcripts are required.

“With postmark timing now less predictable, ‘I mailed it on time’ is no longer a safeguard. From both a lender and IRS standpoint, what matters is when the return is received and processed and not when it was sent,” says Mark Gallegos, partner at accounting and consulting firm Porte Brown.

“For homeowners in the middle of a mortgage application or refinance, a missing or delayed tax return isn’t just an inconvenience; it can be a deal killer with a very real dollar cost.”

What are the risks for homeowners and new buyers?

Michael McAuliffe, CEO and president at Family Credit Management, says that if it is not in the system, the transcript cannot be generated. In turn, this can slow underwriting, delay closing, or impact rate locks during a critical time.

“It may not end the deal, but it can create avoidable delays, so it is important to communicate early with your lender if anything is missing or delayed,” McAuliffe says.

Jordan Del Palacio, a loan partner at Churchill Mortgage, explains that for certain types of income, primarily self-employment or business income, the financials aren't "official" until the returns are accepted and processed by the IRS.

“The IRS's stamp of approval makes the details of the tax returns legitimate. When a tax return is lost or in "tax return purgatory," it is catastrophic to a borrower, especially if they need that year's reported income to qualify,” Del Palacio says.

Without this, lenders may need to use income from previous years' tax returns, and if those numbers aren't high enough to qualify, “we would hit a dead end on that loan,” he says.

The repercussions don't stop there.

As Cody Schuiteboer, president and CEO of Best Interest Financial, notes this could also affect the mortgage rate you locked in. Rate locks last an average of 30 to 60 days, but if a borrower fails underwriting due to a lack of tax records, they'll need to lock again, according to the most recent week's pricing, and that's not good news in 2026's volatile lending climate.

“With rate fluctuations this unpredictable, a half-point increase on a $500,000 mortgage translates to approximately $150 more in monthly payments and an additional $54,000 in costs over a 30-year period,” he says.

Stephen A. Weisberg, principal attorney and founder at The W Tax Group, a nationwide tax defense company, says he’s seen borrowers with strong credit, solid income, and approved loan terms hit a wall because the IRS could not verify that the recent year's tax return was filed using IRS transcripts.

“In many cases, the lender won't close without that verification, which can delay or even derail the transaction altogether,” he says.

Finally, refinance applications might also be extremely problematic because lenders usually require the past 24 months of tax transcripts before closing, according to Eric Croak, CFP, president at Croak Capital.

If you don't have a processed transcript, the underwriter will put your file on what's known as a conditional approval suspense, he says.

“Basically, your file is locked until the IRS replies. Let's say you're trying to get a cash-out refinance to pay off $50,000 in credit card debt at 24% APR. The interest savings you'd realize by paying off credit cards would disappear waiting for the IRS to respond. Most borrowers won't have their rate-lock window last that long if rates jump or fall 0.5%,” Croak adds.

Checklist of digital filing best practices

To avoid issues and ensure a "clean" paper trail for lenders, experts say homeowners should take several steps.

“My advice to homeowners is simple: If you’re paper-filing right now, you’re taking an unnecessary risk. A clean, verifiable digital trail is critical, especially when financing is involved,” explains Porte Brown’s Gallegos.

First, e-file your return, as this provides a timestamped submission and confirmation of acceptance, typically within 24–48 hours, he says, adding that you should retain your e-file acknowledgment, as it is your proof of filing.

He also recommends using reputable filing platforms, such as IRS Direct File or established tax software, to ensure proper submission and documentation.

Croak also urges individuals to create an account on IRS.gov right now. Setting up that account allows users to watch transcripts become available to lenders in real time.

Gallegos says you should also proactively pull your tax transcript and, once processed (often within three weeks of e-filing), have it ready before underwriting requests.

Finally, he says to communicate early if filing an extension.

“Filing Form 4868 extends your tax deadline, but not your lender’s timeline,” Gallegos adds.

Finally, Best Interest Financial’s Schuiteboer says that the No. 1 priority for borrowers this tax season is to file electronically via IRS e-file, because e-filed returns take two to three weeks to be processed and entered into IRS records, while paper filings can take six to eight weeks or even longer.

“I make it very clear to my mortgage clients: If you plan on buying or refinancing within the next six months, then you shouldn't consider any other method but the digital one,” he adds.