Do you know what a 147C Letter is? If you run some business or deal with taxes, you might hear about this term. Don’t worry if you haven’t heard of it so far. In this article, we will go deeper into what a 147C Letter is, why it’s relevant, and how to apply for it if necessary. Let’s begin!
What Is a 147C Letter?
A 147C Letter is an IRS document that releases and confirms your business’s Employer Identification Number (EIN). An EIN is sort of like a social security number for businesses, a nine-digit number unique to you and issued to your business by the IRS for tax purposes.
This official confirmation on a 147C Letter verifies with the IRS that indeed, your business has the correct EIN. It is often called an EIN Verification Letter.
Why Is the 147C Letter Important?
You are probably asking, why verify my EIN? Here are several reasons for needing a 147C Letter:
Used in filings: Businesses often misplace their copy of the EIN or have not filed with that number in a long time. This letter assures you that the correct EIN is used in filing.
Open a business bank account: As you open up a business bank account, the banks will demand your EIN number; you may submit it as proof through a 147C letter.
Entering business contracts: In certain types of business contracts, an EIN verification is required. A 147C Letter is more than enough and ensures a firm authentication.
Avoiding Penalties: Using a wrong EIN on tax documents or official paperwork will get you fined or penalized. A 147C Letter helps prevent these issues by confirming the right EIN.
How to Apply for a 147C Letter
Now that you are enlightened regarding the importance of the 147C Letter, here is how you apply for it:
Call the IRS: You can’t request a 147C Letter online, so you will need to call the Business and Specialty Tax Line at 1-800-829-4933. Try to have your business information in hand when you call to make the process go faster.
The IRS will also use this opportunity to confirm your identity and make sure you’re legally authorized to lodge a 147C Letter. This is likely to be something akin to asking for name, business name, and business address or similar details.
Receive the Letter: Once you have confirmed your identity, the IRS will deliver the 147C Letter to you. You may receive it by mail or even fax. You can fax to get it urgently.
What is included in the 147C Letter?
Generally, the 147C Letter includes all information about the tax status of your business. You may find these:
- Employer Identification Number (EIN): The letter confirms your EIN.
- Business Name: The name in which your business is registered with the IRS.
- Business Address: The address the IRS has on file for your business.
- Tax Classification: The letter also may include your business’s tax classification (sole proprietorship, corporation), and so on.
Can You Get a 147C Letter If You’re Not the Business Owner?
Can You Get a 147C Letter If You’re Not the Business Owner?In general, an authorized representative or someone with a business should be applying for this 147C Letter. This would be a need for the private and confidential matters of your business. If you are an authorized representative but not the owner, you should have legal authorization like a Power of Attorney.
When Do You Require a 147C Letter?
Although you probably don’t need a 147C Letter every day, here are some scenarios where it just proves really handy:
Lost or Forgotten EIN: Lost or forgotten your EIN? A 147C Letter can help you recover one.
Business Changes: Changing business names or addresses? You might need an updated 147C Letter that lists the new business details.
Income Tax Audits: You will need to prove your EIN when your tax is audited by the Internal Revenue Service. A 147C Letter counts as proof.
Banks and Financing: When granting any loan or opening business accounts, financial institutions demand verification of EIN, so will a 147C Letter allow you to do that.
How long would you have to wait to get a 147C Letter?
The only cause for concern about timing with the 147C Letter is that you ask that it be sent to you when, since the entire process does not take too much time. The duration depends on which option you are choosing to have it arrive by fax:
By Fax: If you choose to have it sent by fax, it might arrive to you in a matter of hours.
By Mail: If you prefer to mail it, then this might take 7 to 14 business days depending on the location. In case you need it urgently, it will be better for you to ask for faxed copy.
147C Letter vs. EIN Confirmation Letter
It may be a little tricky to distinguish between 147C Letter, also known as the EIN Confirmation Letter, or CP 575. Here are a few differences:
CP 575 (EIN Confirmation Letter): This is a letter the IRS issues to you after you first apply for and acquire your EIN. It confirms that an EIN has been assigned to your business.
147C Letter: It’s a document you can obtain any time if you have lost your CP 575 or you need updated proof of your EIN. The documents are similar in every sense, but this 147C Letter is used specifically to obtain a new or replacement version of verifying proof that it is really your EIN.
Final Notes
It’s probably one of those things you don’t think about every day, but if you ever do need to confirm your business’s Employer Identification Number, you’ll be glad for this 147C Letter.
You lost the EIN or need it for tax filing, banking, or contracts; this 147C Letter quickly lets you confirm your business identity with the IRS. And when that day rolls around, take it easy. Just follow these instructions below, and you’ll receive your 147C Letter in no time!
Have you ever asked for a 147C Letter? How did it go? Share your experience with us in the comments!
Now that we know what a 147C Letter is and how to obtain it, we are all set for future business needs.
For further assistance with EIN applications, check out our EIN page. Also, you can check for more information on the IRS.
Want to know more about the process? Throw your questions in the comments below!