What is an IRS 147c Letter?

When running a business, maintaining accurate tax records is essential for compliance with IRS regulations. One crucial document that businesses may need is the IRS Letter 147c, a confirmation letter issued by the Internal Revenue Service (IRS) to verify an entity’s Employer Identification Number (EIN).

Understanding the Purpose of a 147c Letter

The 147c Letter serves as official proof of a business’s EIN, which is required for various tax and banking purposes. Businesses often need this letter when:

  • The original EIN confirmation letter (CP 575) is lost.

  • Banks or lenders require verification before opening an account.

  • There is a discrepancy with the IRS regarding the EIN.

  • A company undergoes a name change or restructuring.

Unlike other tax documents, a 147c form cannot be downloaded from the IRS website. Instead, it must be requested directly from the Internal Revenue Service.

How to Request a 147c Letter

Since the IRS Letter 147c is not available online, businesses must request it through the IRS Business and Specialty Tax Line. Here’s how to do it efficiently:

Gather Required Information

Before calling the IRS, ensure you have the following information:

  • Business name as registered with the IRS

  • Employer Identification Number (EIN)

  • Business address on file

  • The name and Social Security Number (SSN) of an authorized representative

  • Formation documents such as incorporation documents or an apply for ITIN application form (if applicable)

Receive Your 147c Letter

If you opt for fax delivery, you should receive the 147c form within a few hours. Mailed copies may take up to two weeks. Ensure the details match your business records to prevent future complications.

Why Do You Need a 147c Letter?

Businesses and organizations require an IRS Letter 147c for various reasons, primarily to validate their EIN for legal, tax, and financial purposes. Here are some common scenarios where this letter becomes necessary:

Opening a Business Bank Account

Banks and financial institutions require an EIN verification letter before opening a business account. If you have misplaced your original EIN assignment notice, the 147c Letter serves as an official replacement.

Filing Business Taxes

When preparing to file taxes, you must ensure that the EIN on your tax documents matches IRS records. Discrepancies can lead to delays in tax processing and potential audits.

Applying for Business Loans

Lenders often require an EIN verification document before approving business loans. The IRS Letter 147c acts as official proof of your EIN, ensuring that your business details are accurate.

Updating Business Information

If your business has changed its name, structure, or address, you may need to provide a 147c form to update records with financial institutions, suppliers, and government agencies.

Employer Compliance

For businesses that employ workers, verifying your EIN ensures compliance with payroll tax obligations. Incorrect EIN records can result in penalties and processing issues.

How the 147c Letter Relates to ITIN and Tax ID Services

For individuals and businesses dealing with tax-related compliance, having the correct tax identification documents is crucial. If you’re a non-U.S. resident conducting business in the U.S., you may also need an ITIN number application to file taxes and meet IRS regulations.

An ITIN service helps individuals who do not qualify for a Social Security Number (SSN) obtain an ITIN for tax reporting purposes. Additionally, businesses that rely on international partners or employees might need ITIN-related assistance alongside their IRS Letter 147c requests.

Key Takeaways

  • The IRS Letter 147c is used to verify a business’s EIN when the original EIN confirmation letter is lost.

  • You can request a 147c form only by calling the IRS Business and Specialty Tax Line.

  • The letter is essential for opening business bank accounts, applying for loans, and ensuring tax compliance.

  • Businesses must ensure their EIN matches IRS records when they file taxes to prevent processing delays.

  • ITIN-related services, such as an ITIN application, may be necessary for non-U.S. residents handling tax compliance.

By understanding how to obtain and use a 147c Letter, business owners can prevent unnecessary disruptions and maintain compliance with IRS regulations.