Blend can automatically request Business Tax Returns or K-1s depending on a borrower’s type of business and ownership percentage. See the example listed below and the Business Tax Returns detail for full trigger logic.
- Borrower enters Business/Self Employment details when completing the application
- Business documents and tax returns logic
- Blend's logic for determining yearly document requests for business tax returns
Borrower enters Business/Self Employment details when completing the application
Borrowers can enter their Business/Self Employment details in the Income milestone.
In the Business/Self-Employment details, borrowers can indicate the business type and percentage of ownership. Business types include:
- Sole Proprietorship
- LLC
- S-Corp
- C-Corp
- Partnership
Business documents and tax returns logic
Depending on the information provided by the borrower during the application, the relevant follow-ups will be requested automatically after submission. Up to 2 years of each document type will be requested depending on the time of the year.
Please check the chart below to confirm when each type of follow-up may be requested from the borrowers.
| Income Source | Paystub | W-2 | PTR1040 | K-1 | BTR |
|
<25% ownership S-corp, LLC |
- | - | ✓ | ✓ | - |
|
<25% ownership C-Corp |
✓ Requested only if it's current job |
✓ | - | - | - |
|
<25% ownership Partnership |
- | - | ✓ | ✓ | - |
|
>=25% S-Corp |
- | - | ✓ |
- Delivered through 1120S with all schedules |
✓ Request 1120S |
|
>=25% C-Corp |
✓ Requested only if it's current job |
✓ | - | - |
✓ Request 1120 |
|
>=25% LLC |
- | - | ✓ |
- Delivered through BTR with all schedules |
✓ Request 1120, 1120S, or 1065 |
|
>=25% Partnership |
- | - | ✓ |
- Delivered through 1065 with all schedules |
✓ Request 1065 |
Blend's logic for determining yearly document requests for business tax returns
Blend looks at today’s date and the deadline to file date (shown below) to determine which years to request each document for. Here are some example scenarios to illustrate Blend’s logic:
Brenda owns 10% of an S-Corp, ABC Company, and she started on 1/1/2016.
- If Brenda is applying for a mortgage on 4/16/18, Blend will request 2016 and 2017 personal tax returns and 2016 and 2017 K-1s.
- If Brenda is applying for a mortgage on 4/14/18, Blend will request 2016 personal tax return and 2016 and 2017 K-1s.
- If Brenda is applying for a mortgage on 12/31/17, Blend will request 2016 personal tax return and 2016 K-1s.
| Document | Deadline to File |
| Business Tax Return | 4/15 |
| K-1 | 1/1 |
Note: Blend evaluates the start date and a January 1st cutoff date to determine if one or two years of K-1s are requested.