OBBBA Changes: How Businesses & Individuals Should Prepare Now for TY 2026 Filing Readiness. Read Whitepaper
By replacing manual IRS forms and fragmented KYB checks with Compliancely’s automated verification platform, this regional bank transformed their underwriting process into a borrower and audit-friendly process
A mid-sized regional bank with a well-established large SBA 7(a) and 504 lending portfolio and 10+ years of experience in serving small business owners. They specialized in commercial lending and loan disbursement for small businesses.
Despite years of lending experience, they were relying on legacy IRS Form 4506-C manual submissions via mail or fax for their underwriting verification process. With loan volumes increasing, their borrowers started expecting faster approvals. Plus, with regulatory oversight increasing, their manual processes became a growing compliance risk.
Their tax transcript retrieval time took an average of 10 to 15 days, with some cases stretching up to weeks.
The team spent an average of 2.5 hours per file manually entering data from PDF transcripts into their system.
The team manually entered data which increased the chances of mistakes occurring more often, raising audit risk.
Multiple follow-ups and delays led to borrowers getting frustrated and seeking other faster alternatives.
A significant number of 4506-C requests were rejected by the IRS because the name and EIN did not match the records.
Replaced wet signatures with 100% digital, IRS-approved electronic authorization that meets both IRS and SBA compliance standards.
Removed traditional 4506-C manual processing and enabled near-real time delivery of IRS tax transcripts.
Integrated TIN checks to validate name and tax ID against IRS records in order to prevent IRS rejections.
Gained real-time verification of whether a business is active and in good standing with the state, without using different state websites.
Automatically screen businesses against OFAC, PEP, and adverse media lists to strengthen BSA and AML compliance.
All requests were recorded with a time-stamped digital audit trail to provide clear and defensible documentation for audits.
The impact of Compliancely on the banks’ underwriting process was immediate and measurable.
By replacing manual Form 4506-C submissions with direct IRS gateway access and digital e-consent, the bank reduced mailing delays, scanning, and IRS backlogs. This reduced tax transcript retrieval time from an average of 15 days to same-day or next-business-day delivery.
By replacing manual Form 4506-C submissions with direct IRS gateway access and digital e-consent, the bank reduced mailing delays, scanning, and IRS backlogs. This reduced tax transcript retrieval time from an average of 15 days to same-day or next-business-day delivery.
Faster approvals reduced borrower attrition to fintech competitors and drove a 15% increase in loan conversions. At the same time, automation freed up time for the underwriting staff, allowing the bank to scale loan volume without adding extra staff.
Real-time EIN and business name validation against official records ensured requests were correct before submission. This improved processing while maintaining full compliance with SBA SOP through a complete, time-stamped digital audit trail.
Applying for loan, verifying income, resolving tax issues. All these things have one thing in common: they require past tax records. But when they are not available, the best practice is to request the IRS for a tax transcript. In this blog, learn what an IRS tax transcript is, what it contains, transcript types, and how permissioned retrieval supports lending, reviews, and tax resolution.
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