You receive an EIN verification letter from the IRS as an answer to your application for an Employer Identification Number. They send this letter to confirm that they have received your letter. Surely, you known the importance of an Employer Identification Number as it is associated with the IRS and taxes.
Table of Contents
- 1 What is an EIN verification letter?
- 2 The importance of an EIN letter:
- 3 How to verify a company’s EIN?
- 4 Verifying your own EIN:
- 5 How to get a copy of your EIN verification letter?
- 6 The reasons for requesting an EIN verification letter 147C:
- 7 Before requesting an EIN verification letter 147C, what you have to know?
- 8 Conclusion:
- 9 Faqs (Frequently Asked Questions)
What is an EIN verification letter?
An EIN verification letter is a formal document issued by the Internal Revenue Service (IRS). This letter is written to make sure the Employee Identification Number that they have issued to a new business. The IRS issues this number to determine a business for tax purposes.
The importance of an EIN letter:
The IRS issues an Employer Identification Number or EIN to the business or company that requested it. EIN is a unique 9-digit number. This number is for the business while the Social Security Number or SSN is for individuals. The businesses require an EIN verification letter if they plan to;
- File tax returns
- Get industrial permits and business licenses
- Open bank accounts
- For other official purposes such as the submission of Form 1099 for contracting work
As a sole proprietor, you can consider getting a 147C letter. This way, you don’t have to use your SSN for your business. Furthermore, while opening a bank account for your business, lending institutions generally insist on providing EIN details. There may come time when your sellers and investors may request your EIN.
When the IRS approves your EIN application, they send you an EIN verification letter that states within 8-10 weeks they issue you this number. The business address you have mentioned in your application, this verification letter gets mailed to it. Sometimes, you may misplace or loss your original letter that is usually a tax ID certificate. In such a situation, you don’t have to worry as you can still get another letter from the IRS. Moreover, this letter acts as the purpose of the original verification letter that you lost.
How to verify a company’s EIN?
An EIN is similar to SSN, but you use an EIN for your business. You should consider all tax identification private whether you want to use this number for business or personal matters. You have to become an authorized representative of your business in order to verify your EIN. There is one exception i.e. registered tax-exempt or non-profit organizations.
Lost or misplaced EIN verification letter
The IRS enables a representative to confirm, call, or relocate your business EIN. You as the business owner consider an authorized representative. Officers of your company, partners, sole proprietors, and for a trust, the executor or the trustee of the estate are also qualified as representatives of your business. It is very easy to get your EIN without an EIN letter. For this, you just have to call the IRS and then a representative of the IRS will ask for your identifying information. Then, the representative will provide you an EIN number over the phone.
When a person isn’t the authorized representative then he can ask an authorized person to complete the Tax Information Authorization. This form needs the EIN in a catch-22 situation. This indicates if your company lost its number completely then the authorized representative should call.
In the case of Exempt Organizations
You can visit the IRS site where you can conduct an Exempt Organization Select Check in order to verify the EIN number of a charitable company. This IRS tool enables you to verify information regarding charitable organizations without the IRS EIN letter.
Typically, Exempt Organizations have not-for-profit status. With the help of the site’s search tool, you can search the company by name. After that, you can check the EIN verify tax-deductible donations and the company’s status too.
Other methods of confirming an EIN
You can also use other sources to verify your EIN. Most employers still comply with requests to verify their EIN while it’s considered private information. On payroll checks or on 1099s for contractors, you can see this number.
By providing an incorrect EIN will result in IRS rejection of the form while filing tax returns whether for your business or for personal purposes. Due to this inconsistent data, they might even request for other information. In such a case, to prevent overstating or understating your income, it is necessary to verify your EIN.
Verifying your own EIN:
Without your 147C letter, you can verify your EIN number. By using your EIN, if you have already set up your business then it should appear on any of the following documents;
- Banking Statement
- Applications for bank accounts, loans, etc.
- Fictitious name statement
- Sales tax permit
- The tax returns of the previous year
- Business License
- 1099-Misc forms
Without your EIN letter even by having the above documents, if you still can’t verify your EIN then follow the below steps;
- First, you have to call the Business & Specialty Tax Line of the IRS.
- Before they provide your number, you have to give your identifying information. The reason behind is that only authorized persons can get this number.
- They will give you the number over the phone when they have verified your information.
- On the phone, repeat the number to the person. After that, secure this number in a password-protected file so that you always have access to it.
You must protect your EIN at all times in the same way as you protect your SSN. Moreover, you should always ensure that all documentation having this number is securely locked up. During submitting applications online, you should use secure online sites that request your EIN. You may start feeling overwhelmed with all of this EIN information. Likewise SSN, or EIN is your business’ legal identifier while conducting business affairs such as submitting tax returns.
How to get a copy of your EIN verification letter?
There are the following ways to apply for an EIN number and your EIN verification letter;
- The online application can be used to get your business’s EIN as you will get a response right away. After that, you can immediately print out your EIN confirmation letter. It is highly recommended to save this document in order to keep a digital record of your documentation and transaction.
- In case, you are using Form SS-4 for applying then fill it up and fax it. Within a few business days, you can get your tax ID.
- Your letter should come to you in a few weeks in case you are applying by mail.
If you have misplaced or lost your copy of the letter then you can do the following things to find it;
Check your old files
If you have applied online for EIN then for a copy of your letter, check your file downloads from when you applied for the EIN.
Check with your bank
The bank might have requested a copy of the EIN verification letter in case you are applying for a loan that you needed to start your business.
Request a replacement letter
Requesting a replacement letter from the IRS is an easy method. At first, an IRS representative confirms your identity. After that, you can get your replacement letter which is not a duplicate of your original letter. But, it will act as an official document that you can use when you have to provide proof of your EIN.
The reasons for requesting an EIN verification letter 147C:
Every person definitely has their own reasons for requiring a 147C letter. However, there are some particular reasons that why you request this letter;
- To open a US business account
- When you are applying for a business loan
- To apply for business US credit cards
- Filing tax returns
- Applying for a license
- Getting permission for business operations
- When you are going into business with another company
- To Solicit US payment processing services
Before requesting an EIN verification letter 147C, what you have to know?
You have to provide appropriate information and documentation to the IRS for verifying who you are. You need to provide the following items to the IRS while requesting a 147C letter;
- Your US LLC registered name
- The date when LLC EIN was issued
- The responsible person’s name and position
- Personal ID or passport
- US phone number
- US fax number for getting EIN 147C
You are ready to request an EIN verification letter 147C after gathering the aforementioned information.
Conclusion:
In conclusion, an EIN verification letter is sent by the IRS after approving your EIN application. An EIN is a unique number matched to your business. You need an EIN for various reasons like when your business plans to file tax returns, open bank accounts, and more. An authorized representative of your business verifies your EIN.
Faqs (Frequently Asked Questions)
In case of public companies, they can look up the EIN on the SEC’s website. The EINs that are non-profit, you can easily find them in IRS database as they are public information.
These are the following;
1- EIN confirmation letter
2- Tax returns
3- Financial situation
Grace Harry is an experienced freelance writer with an experience for 12+ years. She got her Master’s in Financial Management degree from the University of Dennison in 2007. She worked at California State Bank to help clients with their credit, investments, and bank accounts. She likes to assist people in reaching their financial goals when it comes to financial planning.
