Navigating IRS transcripts isn’t just about retrieving data – it’s about understanding what that data means and how it can help your clients. In a recent discussion, NATP instructor and tax resolution expert Jim Buttonow shared practical insights on using IRS transcripts more effectively in everyday practice. From recent changes in access to common red flags to watch for, here’s what you need to know.

Understanding IRS transcripts

IRS transcripts are essential tools for reviewing a taxpayer’s filing and payment history. They’re often used to verify returns, track notices, and uncover discrepancies that may lead to compliance issues or refund delays. As a refresher, here are the main types of transcripts:

• Tax return transcript – shows most line items from the original return
  • Available for current and prior three years
• Tax account transcript – includes basic data such as filing status, AGI, taxable income and any payments or adjustments
  • Available for current and prior nine years
• Record of account transcript – combines tax return and tax account transcript data
  • Available for current and prior three years
• Wage and income transcript – contains information from W-2s, 1099s, 1098s and other third-party statements
  • Available for current and prior nine years
• Verification of non-filing letter – confirms that no Form 1040-series return was filed for a given year
  • Available after June 15 for the current tax year and anytime for prior three years

Transcript Type	Description	Availability
Tax return transcript	Shows most line items from the original return	Current year and prior 3 years
Tax account transcript	Includes filing status, AGI, taxable income and any payments or adjustments	Current year and prior 9 years
Record of account transcript	Combines tax return and tax account transcript data	Current year and prior 3 years
Wage and income transcript	Contains W-2s, 1099s, 1098s and other third-party information	Current year and prior 9 years
Verification of non-filing letter	Confirms no Form 1040-series return was filed	After June 15 for current year; anytime for prior 3 years

What’s new for 2025

The IRS continues to modernize transcript tools and access, and this year, several changes are making transcript use easier – and more secure – for tax professionals.

• Redacted data for identity protection – Only partial Social Security numbers and other identifiers are shown, which helps protect taxpayer information.
• Improved online tools – The IRS is enhancing features in its Tax Pro Account and Transcript Delivery System, making it easier to pull the right records quickly.
• More real-time updates – Some data is now updated more frequently, giving you better visibility into the status of returns and notices.

Best practices for transcript use

Transcripts can be a powerful diagnostic tool – if you know how to use them well. Buttonow recommends these tips:

• Review wage and income transcripts early to detect income underreporting issues or overlooked documents
• Use tax account transcripts to help resolve notices related to penalties, payment mismatches or unfiled returns
• Regularly monitor your clients’ transcript data when handling IRS letters or suspected identity theft
• Encourage clients to create their own IRS Online Account for visibility – especially helpful for those dealing with identity theft or refund delays

  Why this matters

Understanding IRS transcripts is essential for proactive tax professionals. They can help you catch filing errors, resolve issues more efficiently and communicate more confidently with the IRS on your client’s behalf. Buttonow shared, “The transcript is often your window into what the IRS sees – and that’s the key to unlocking solutions.”

NATP members stay ahead of changes like these to better serve clients with accuracy, insight and professionalism. If you haven’t explored the latest on IRS transcripts, now’s the time to sharpen your skills.

👉 Watch the conversation with Jim Buttonow below!