Washington DC – May 15, 2023 – Innovative Lending Platform Association (ILPA) CEO Scott Stewart released the following statement regarding the introduction of the IRS eIVES Modernization and Anti-Fraud Act by Chairman of the House Financial Services Committee, Patrick McHenry (R-NC) and Representative Jimmy Panetta (D-CA), member of the House Committee on Ways and Means.
“ILPA applauds Reps. McHenry and Panetta for introducing the IRS eIVES Modernization and Anti-Fraud Act which will substantially reduce friction for borrowers in applying for a loan, combat fraud, and increase access and speed in which consumers and small businesses can access capital.”
This legislation modernizes the IRS Income Verification Express Service by upgrading the system from a fax based system to an automated internet based API, eliminates the need for loan applicants to interact with the IRS directly, and expands the data made available to lenders to include certain business tax return information.
For small businesses applying for a loan, this legislation allows business owners to give permission to the IRS for their lender to access – in real time – specific business tax return information needed to underwrite a loan application.
For lenders, retrieving tax return information in real time directly from the IRS ensures authenticity and when paired with bank account data makes it possible to make instant decisions regarding loan applications.
“When enacted, this legislation will enable one of the biggest technology and data advancements in lending since Section 1033 of Dodd Frank Act.”