One crucial document you’ll likely encounter along your entrepreneurial journey is the 147c Letter from the IRS.
The form is used for confirming your Employer Identification Number (EIN), a must-have for every entrepreneur aiming to establish and operate a business in the United States.
Whether you’re launching an e-commerce platform, a SaaS startup, or a marketing agency, understanding how to obtain and utilize the 147c Letter is key to keeping your business compliant and on the right track.
A 147C Letter: The Basics
An official IRS document that verifies your Employer Identification Number (EIN) is called a 147c Letter. If you need to validate your number with banks, vendors, or other organizations, or if you still need to remember your initial EIN confirmation, this form is quite helpful. To put it simply, the 147c Letter just verifies the information that already exists; it doesn’t alter your EIN or offer any new information.
If you want to request a 147c Letter, you can send it by post to your registered agent, the other option is to send it by fax. To prove your identification, be ready to give identifying information such as your name and business data. Upon processing your request, the IRS will either send or fax the letter to you.
Why Do I Need a 147C Letter?
You need the 147C Letter to prove to anyone what your EIN is. You’ll need it for:
Opening Bank Accounts
Opening a bank account for your LLC is one of the first steps in managing your business finances. To guarantee that your company is appropriately registered and complies with federal requirements, banks need to verify your EIN. Your EIN is officially confirmed by the 147c Letter, which helps speed up the process of opening a bank account.
Banks require formal documentation to confirm your company’s identification, which the 147c Letter offers. Having it on hand guarantees that you may quickly fulfill all financial needs, allowing you to concentrate on other important aspects of your company.
Creating Business Partnerships
When you form partnerships with other businesses, you need to prove your company’s legitimacy and operational status. This 147c Letter serves as solid evidence that the IRS has acknowledged and registered your company.
Many companies want proof that their partners have legitimate EINs and meet federal requirements. And with this letter, you are opening the door for more constructive discussions and cooperation. Without it, potential partners can be skeptical of you or investigate you more, which might cause delays or ruin important business connections.
The partnership process is streamlined when the 147c Letter is easily accessible, enabling both parties to concentrate on shared objectives and cooperative efforts.
Communicate with Government Bodies
There are certain situations where government agencies or institutions may require verification of your EIN (Employer Identification Number). Although it may not happen often, especially for some businesses, it’s important to be prepared. It is an official document from the IRS that confirms your EIN, and it serves as proof that your business is legally registered.
For non-US residents, having this letter on hand is especially crucial. Various government bodies, both in the US and abroad, might request an official EIN verification for tasks such as:
- Filing taxes
- Registering with regulatory agencies
- Applying for licenses or permits
- Opening a business bank account
- Meeting compliance requirements for doing business in the US
Even if your business has never been asked for it before, it’s a good idea to obtain and keep a copy on file, just in case you need it in the future.
How to Request a 147C Letter
If you need a 147c Letter for EIN verification as a non-US resident, here’s how you can go about it:
– Submitting Form SS-4: If you still need to apply for an EIN, you can do so by this form to the IRS via e-fax or post. This is especially relevant for non-US residents, as the IRS online application is typically unavailable to those who have a US tax identification number or address.
– By Fax: Fax is generally the faster option, with processing times typically ranging from one to two weeks. Electronic fax services also work. The IRS fax number for EIN applications from outside the US is +1-855-215-1627.
– By post: Applying by mail takes considerably longer, often six weeks or more due to international postal delays and IRS processing times.
– Contacting the IRS: Once you’ve received your EIN, you can request a 147c Letter by calling the IRS. Non-US residents can use the IRS International Line at +1-267-941-1000 (available weekdays from 6 AM to 11 PM Eastern Time).
Inform the agent that you need a 147c Letter to verify your EIN.
– Delivery options: The IRS can send the 147c Letter by fax or mail. For non-US residents, fax is typically faster due to the potential for long international mailing times.
Receiving the EIN Verification Letter
This EIN verification document will be sent to you or your registered agent (if you use their address) by mail or fax once you’ve gotten in touch with the IRS and obtained your 147c Letter. If you want to fax your letter, the procedure is typically straightforward and you might receive it the same day. It may be the best choice if you have an urgent need to confirm your EIN for partnerships or commercial dealings.
On the other hand, if you want to receive the letter via mail, it should arrive within a week. Make sure your shipping address is current to prevent any delays. As soon as you receive the letter, make copies for your records and preserve them carefully. This document is necessary for several company operations, including forming partnerships with other businesses and creating bank accounts.
Conclusion
The 147c Letter confirms your EIN, ensuring smooth operations across various business activities, from opening bank accounts to partnering with other companies. By knowing how to request and use this document, you keep your business compliant and prepared for growth.
Proactively managing your EIN documentation can save you time and hassle when verification is needed. Whether you’re expanding your operations or establishing new partnerships, having the 147c Letter on hand allows you to move forward with confidence and ease.
Remember, organization is key. Keep your EIN and related documents accessible and safely stored.
FAQs
How can I obtain a CP 575 letter?
The CP 575 letter is an official confirmation from the IRS that your EIN (Employer Identification Number) has been assigned. This letter is sent after the IRS processes your EIN application. As a non-US resident, you can apply for an EIN by fax or mail. Unfortunately, the IRS online application system is generally not available for foreign applicants, so you’ll need to submit your request by fax or mail, depending on what works best for your situation. Be prepared for the process to take several weeks, as the IRS needs time to process these requests.
If you’ve applied for your EIN but haven’t received your CP 575 letter, make sure the address you provided on the application is correct. Should you lose the CP 575 letter, the IRS does not issue duplicates. However, you can request a 147c Letter, which serves as an alternative proof of your EIN.
Is CP 575 the same as 147c?
Both are used to verify your EIN, but they are issued under different circumstances. The CP 575 is the original letter the IRS sends after approving your EIN application. It is mailed to the address listed on your application.
The 147c Letter, on the other hand, is used to verify your EIN if the original CP 575 is lost or if additional verification is required. You must request the 147c Letter by contacting the IRS directly via phone. After verifying your business information, the IRS can send the 147c by fax or mail, depending on your preference. As a non-US resident, the fax option may be more efficient due to international mailing delays.
Can I get a copy of my EIN confirmation letter online?
No, the IRS does not provide an option to retrieve a copy of your CP 575 letter online. After your EIN is issued, there is no online portal to access the confirmation letter again. However, if you applied for your EIN through the IRS’s online system (when available to non-residents), you would have received an immediate confirmation notice. It is important to save or print that notice for your records. If you lose this, you will need to request a 147c Letter for verification, as mentioned above.
