A Return Transcript contains most of the line items from the original tax return filed by the taxpayer, including any accompanying forms and schedules. It reflects the tax return as it was originally filed and does not include any changes or corrections made after the return was filed. This type of transcript is often used to verify income and tax filing status for purposes such as mortgage applications, student loan applications, and other financial transactions. Return Transcripts are available for the current year and the three prior years.
In contrast, an Account Transcript provides a more comprehensive overview of the taxpayer's account with the IRS. It includes information on any adjustments or changes made to the taxpayer's account after the return was filed, such as payments made, penalties and interest assessed, and any amendments. Account Transcripts are used to resolve issues related to tax liabilities, payment plans, and audits. They do not contain line-by-line information from the original return but show basic data including marital status, type of return filed, adjusted gross income, and taxable income.
Sources:
Publication 946 (2023)
Publication 3 (2023)
Publication 1544 (9/2014)
Publication 910
Publication 535 (2022)
