What is a 147C Letter? If you’re a business owner, you may have come across the term “147C letter” in your dealings with the
Internal Revenue Service (IRS). But what exactly is a 147C letter, and why is it important for businesses?
In this article, we will explore the definition and purpose of a 147C letter, as well as how to request one from the IRS.
Definition and purpose of a 147C letter
A 147C letter, also known as an EIN Verification Letter or EIN Confirmation Letter, is an official document issued by the IRS. The term “147C” refers to the IRS form CP 575, which is used to assign an Employer Identification Number (EIN) to a business entity.
An EIN is a unique nine-digit number that is assigned to identify a business for tax purposes. The purpose of a 147C letter is to provide official confirmation of a business’s EIN number.
This letter serves as evidence that a business is legally recognized by the IRS and has been assigned a valid EIN. It is often required by banks, government agencies, and other organizations during business transactions or for enrollment in various programs.
Importance of a 147C letter for businesses
Obtaining a 147C letter is crucial for businesses for several reasons. First and foremost, it provides official confirmation of a business’s EIN number, which is essential for many business operations.
Without a valid EIN, a business may face difficulties in opening a bank account, applying for business licenses, or entering into contracts. Moreover, a 147C letter can help businesses streamline their financial and tax-related activities.
It allows businesses to accurately report their tax information to the IRS and ensures compliance with federal tax regulations. Additionally, having a 147C letter can help businesses establish credibility and trust with their partners, clients, and suppliers.
How to request a 147C letter
Now that you understand the importance of a 147C letter for your business, let’s explore how to request one from the IRS. There are two main methods to obtain a 147C letter: by phone or by mail.
Requesting a 147C letter by phone
Requesting a 147C letter by phone is a convenient and relatively quick option. To do so, you need to contact the IRS and provide the necessary information.
The IRS has a dedicated phone line for EIN inquiries, and you can find the phone number on the IRS website. When calling, be prepared to provide the following information:
1.
Your business’s legal name
2. Your business’s address
3.
Your name (as the responsible party)
4. Your position in the business
5.
Your phone number
Once you have provided this information, the IRS representative will verify your identity and request your preferred method of receiving the letter. The options typically include fax and mail.
Requesting a 147C letter by mail
If you prefer to request a 147C letter by mail, you can do so by sending a written request to the nearest IRS office. You can find the correct mailing address on the IRS website or by contacting the IRS directly.
When submitting a mail request, it’s important to include the following information:
1. Your business’s legal name
2.
Your business’s address
3. Your name (as the responsible party)
4.
Your position in the business
5. A contact phone number
Be sure to clearly state that you are requesting a 147C letter and provide a brief explanation of why you need the letter.
It may also be helpful to include a copy of your CP 575 if you have one available.
Conclusion:
In conclusion, a 147C letter is an essential document for businesses as it provides official confirmation of their EIN number. This letter plays a crucial role in various business operations, such as opening bank accounts, applying for business licenses, and ensuring compliance with tax regulations.
Requesting a 147C letter is a straightforward process that can be done by phone or mail, depending on your preference. By following the steps outlined in this article, you can obtain a 147C letter and reap the benefits it offers for your business.
Who can request a 147C letter
Once you understand what a 147C letter is and how to request one, you may wonder who has the authority to request this important document from the IRS. In this section, we will cover the individuals and entities that can request a 147C letter and the necessary requirements for doing so.
Company representative’s authority to request a 147C letter
In most cases, the company owner or a formally appointed representative of the business has the authority to request a 147C letter. This applies to various types of legal entities, including limited liability companies (LLCs), corporations (INC), both C-Corp and S-Corp, and partnerships.
The representative can be an officer, a member, a general partner, or someone who has been officially designated by the business to act on its behalf. To request a 147C letter as a representative, you will need to provide your personal identifying information, including your name, position in the company, and contact details.
Additionally, you will need to provide the legal name of the business, its address, and the Employer Identification Number (EIN) assigned to it. This information is crucial for the IRS to verify your authority to request the document and confirm the business’s details.
Power of attorney to request a 147C letter
In some situations, a company representative may be unable to request a 147C letter due to various circumstances such as illness, absence, or other commitments. In such cases, the representative can grant someone else the authority to act on their behalf through a power of attorney (POA).
A power of attorney is a legal document that grants a designated individual, known as the attorney-in-fact, the power to make decisions and take actions on behalf of the person granting the power. To request a 147C letter using a power of attorney, you will need to submit a completed Form 2848, Power of Attorney and Declaration of Representative, to the IRS.
This form authorizes the designated individual to act as your representative in matters related to the 147C letter. When completing Form 2848, you will need to provide specific information about the attorney-in-fact, such as their name, contact information, and their relationship to the company.
Additionally, you will need to provide your personal identifying information, as well as the business’s legal name, address, and EIN. It’s important to note that the power of attorney must be in effect at the time of the request and should clearly state that the attorney-in-fact has the authority to request a 147C letter from the IRS.
Therefore, it is crucial to carefully review the power of attorney document to ensure that it includes the necessary authorization.
Receiving the 147C letter
Once you have requested a 147C letter from the IRS, you may be curious about the delivery methods and processing time for receiving this important document. This section will cover the various delivery methods available and provide insights into the potential processing times.
Delivery methods for the 147C letter
When requesting a 147C letter, you will typically have the option to choose between mail, fax, or, in some cases, email as the delivery method. The choice of delivery method often depends on personal preference and the urgency of the matter at hand.
Mailing is the most common delivery method, as it provides a physical copy of the 147C letter. However, it is important to keep in mind that mail delivery may take some time, especially if the business is located in a different state or country.
It is recommended to allow for a reasonable period for the letter to arrive, typically up to a few weeks depending on the postal service. Fax is another delivery method available for receiving the 147C letter.
This method is often preferred when immediate access to the document is required, such as during time-sensitive business transactions. When choosing the fax delivery method, you will need to provide a fax number to the IRS representative during the request process.
It’s important to ensure that the provided fax number is correct and operational to avoid any delays or complications. In certain cases, the IRS may offer the option to receive the 147C letter via email.
However, email delivery is not commonly available and is subject to security concerns. The IRS takes privacy and data protection seriously and may limit email delivery to specific circumstances or when requested by authorized individuals.
Processing time for the 147C letter
The processing time for a 147C letter can vary depending on several factors, including the IRS’s workload, the accuracy and completeness of the information provided, and the delivery method chosen. Generally, the IRS aims to process requests as efficiently as possible.
However, it is important to note that there may be some delay in processing, especially during peak periods or when there is a high volume of requests. In such cases, it is advisable to allow for additional time for the 147C letter to be processed and delivered.
If you choose the fax delivery method, you may receive your 147C letter immediately after making the request. This can be particularly advantageous if you require immediate confirmation of your EIN number for a time-sensitive business transaction or enrollment process.
On the other hand, if you choose the mail delivery method, you should expect to receive the 147C letter within a few weeks. It is essential to account for this processing time and plan your business activities accordingly to avoid any delays or disruptions.
In some cases, unexpected delays may occur due to data discrepancies or the need for additional verification. If your request requires further review or clarification, the IRS may contact you for additional information.
It is essential to promptly respond to any inquiries or requests from the IRS to ensure a smooth processing of your 147C letter.
Conclusion
In conclusion, obtaining a 147C letter requires the authority to request it from the IRS, which is typically held by the company owner or an appointed representative. In some cases, a power of attorney can be used to grant someone else the authority to request the document.
The delivery method for the 147C letter can be chosen based on personal preference and urgency, with options including mail, fax, and, in rare cases, email. It is important to account for the processing time when requesting a 147C letter, allowing for potential delays during peak periods or high volumes of requests.
By understanding who can request a 147C letter and the delivery methods available, businesses can ensure they receive this important document in a timely manner to facilitate their operations and compliance with tax regulations.
Sample letters and FAQs
In this section, we will provide examples of CP575 and 147C letters, as well as answer frequently asked questions related to requesting and obtaining the 147C letter. Understanding these sample letters and having clarity on common questions can further enhance your knowledge of the process.
Examples of CP575 and 147C letters
To give you a better idea of what a CP575 and 147C letter look like, we have provided sample letters below:
Example of a CP575 letter:
[Your Business Name]
[Your Business Address]
[City, State, ZIP Code]
[Date]
Internal Revenue Service
[Address]
[City, State, ZIP Code]
Subject: Request for CP575 Form EIN Assignment Confirmation
Dear Sir/Madam,
I, [Your Name], as the representative of [Your Business Name], am writing to request a confirmation of our Employer Identification Number (EIN) assignment. The details of our organization are as follows:
Business Legal Name: [Your Business Name]
Address: [Your Business Address]
EIN: [Your EIN]
We require this confirmation for official record-keeping, banking purposes, and to comply with legal and tax obligations.
Thank you for your attention to this matter. Please provide the CP575 form at your earliest convenience.
Should you require any additional information, please do not hesitate to contact me at [Your Phone Number] or [Your Email Address]. Yours sincerely,
[Your Name]
[Your Position in the Company]
[Your Signature]
Example of a 147C letter:
[Your Business Name]
[Your Business Address]
[City, State, ZIP Code]
[Date]
Internal Revenue Service
[Address]
[City, State, ZIP Code]
Subject: Request for 147C Letter EIN Verification
Dear Sir/Madam,
I, [Your Name], on behalf of [Your Business Name], am requesting a 147C letter to verify our Employer Identification Number (EIN) assigned by the IRS. The details of our organization are as follows:
Business Legal Name: [Your Business Name]
Address: [Your Business Address]
EIN: [Your EIN]
We require this letter to provide official confirmation of our EIN for banking purposes, business transactions, and compliance with tax regulations.
Thank you for your attention to this matter. Please provide the 147C letter using the delivery method indicated in our initial request.
If there are any updates or issues related to our request, please contact me at [Your Phone Number] or [Your Email Address]. Yours sincerely,
[Your Name]
[Your Position in the Company]
[Your Signature]
FAQs related to requesting and obtaining the 147C letter
Q: Can I request a copy of my EIN confirmation online? A: Currently, the IRS does not offer the option to request a copy of your EIN confirmation online.
You can request the 147C letter by phone or mail using the methods discussed earlier in this article. Q: What is the difference between the 147C letter and the CP 575 form?
A: The CP 575 form is the official document issued by the IRS to assign an EIN to a business. It serves as proof of your EIN assignment.
The 147C letter, on the other hand, is a letter issued by the IRS to confirm the EIN number assigned to your business. Q: Are there different delivery methods for the CP 575 form?
A: The CP 575 form is typically mailed to the business address provided during the EIN application process. It is important to ensure that the provided address is accurate and up to date.
If you need the CP 575 form to be delivered using a different method, such as fax or email, you can make a request directly to the IRS representative handling your case. Q: Can I request a copy of Form CP 575 instead of a 147C letter?
A: The CP 575 form is not typically reissued by the IRS. However, you can request a 147C letter, which provides the same confirmation of your EIN assignment.
Q: Can I request a copy of the 147C letter on behalf of someone else’s business? A: No, you can only request a 147C letter for your own business.
If you need to obtain a 147C letter for another business, you must be authorized by the business to act as their representative or have a power of attorney in place. Q: Is there a fee associated with requesting a 147C letter?
A: No, there is no fee for requesting a 147C letter from the IRS. However, keep in mind that standard postal charges may apply if you choose mail delivery.
Q: Can I request a replacement if I lose my 147C letter? A: Yes, you can request a replacement 147C letter if it is lost or misplaced.
Simply contact the IRS representative who issued the original letter and explain the situation. They will guide you through the appropriate steps to obtain a replacement.
Conclusion
In this section, we provided examples of CP575 and 147C letters, offering a visual representation of these important IRS documents. Additionally, we addressed frequently asked questions related to requesting and obtaining the 147C letter, providing clear guidance on topics such as online requests, differences between the CP575 form and the 147C letter, and available delivery methods.
By familiarizing yourself with sample letters and common questions, you can navigate the process of requesting and obtaining a 147C letter with ease and confidence. In conclusion, understanding and obtaining a 147C letter is crucial for businesses to have official confirmation of their Employer Identification Number (EIN) assigned by the IRS.
We have explored the definition and purpose of a 147C letter, discussed how to request one through phone or mail, highlighted who can request a 147C letter and the option of using a power of attorney, and provided examples of CP575 and 147C letters. The sample letters and FAQs have shed light on the process and answered common questions.
By obtaining a 147C letter, businesses can ensure compliance with tax regulations, establish credibility, and facilitate various business operations. Remember to carefully follow the guidelines provided by the IRS and promptly respond to any inquiries to smoothly obtain your 147C letter.