The 147c letter, commonly referred to as an EIN letter, is a form that a firm with an EIN completes for third parties, such as another business, can validate that business's EIN.
If the company loses its EIN, it must apply for a new one by submitting Form 147c. Unfortunately, the IRS does not make 147c letter information available online because of security concerns.
EINs, or Employer Identification Numbers, function like SSNs but are exclusive to businesses and corporations. An Employer Identification Number (EIN) is assigned to every business or organization that must withhold taxes from employee wages.
Any business that loses its EIN confirmation letter cannot replace it. If you have lost your EIN and need the IRS to provide you with a new one, you must use Form 147c. The 147c letter is the IRS's way of communicating your current EIN to you or a third party. No EIN will be issued automatically upon receipt of the 147c letter; that requires a separate application.
What are The Importance of a 147c Letter?
The 147c letter allows company owners to rectify mistakes when linking their company's legal name and EIN. The necessity of having a 147c letter is given below:
1. Finance and Banking Opening
A company bank account or registering for a business credit card will require verification of your Employer Identification Number (EIN). If you want to get a loan for your firm or try to attract investors, you'll need one of these, too. Otherwise, the 147c letters are accepted by all US banks and lenders.
2. Cooperation With Other Companies
Your 147C letter will be handy when forming partnerships with companies or searching for suppliers. In addition, businesses and organizations (such as those that handle payroll) often want official documentation of your EIN before doing business with you. For instance, QuickBooks requires its customers to present EIN verification letters issued by the IRS to conduct automatic employee payments.
Alternatively, if you later decide to form a partnership with another company, they might need this documentation as a formality.
3. Tax Return Preparation
When submittingW-2s and 1099s to the IRS, you'll need to include your EIN. However, you only need your EIN; proof of theCP 575 isn't necessary. If you need help remembering your Employer Identification Number (EIN), you must therefore resort to the letter 147C.
4. Getting Enrolled in Medicare
If you run a hospital, clinic, or another healthcare facility, you can join Medicare as an "institutional provider" and receive financial benefits from the program. When you enroll in Medicare, you gain the legal right to treat anyone who has Medicare as a paying patient.
Applying for enrollment with Medicare and Medicaid is a crucial first step for any prospective institutional provider. If you have an EIN from the IRS, you must submit your application with IRS verification. The CMS will only review your application if you offer a copy of your 147c letter.
5. Obtaining Legal Authorization for a Commercial Activity
It is illegal to run some types of enterprises in the United States without the appropriate licensing from the appropriate federal or state agencies. Getting an EIN may be a prerequisite for applying under certain conditions. For instance, a "Transaction Privilege Tax" (TPT) license is required in Arizona for any vendor wishing to conduct business there. An EIN is a must if you want to file for a TPT license.
Documents of EIN are usually not required with license applications. However, if you're in this situation and need help remembering your EIN, the 147C letter will come in handy.
How to Request a 147c Letter?
A 147c letter can be requested by calling the IRS, sending a note through the mail, or writing a letter to the agency.
The two procedures are given below:
Request by Fax
Any interested parties should contact the IRS at 1-800-829-4933 to request the business's Form 147c letter. The IRS Business & Specialty Tax line is available Monday through Friday, 7:00 a.m. to 7:00 p.m. local time (or Pacific time if calling from Hawaii or Alaska). Getting ready is key before contacting the IRS; here's how to do it:
First, choose your preferred language. For example, press 1 if you wish to converse in English.
To access the section dealing with Taxpayer ID Numbers, press 1 please.
If you know you have an EIN but can't recall it, go ahead and select 3. A representative from the IRS will be in touch with you shortly. Depending on the time of day, this may take a while.
Please get in touch with the agent if you have misplaced your CP 575 notification and need an EIN verification letter.
After that, the agent will ask you a series of verification questions to ensure you are the company's legal owner or have the appropriate power of attorney.
Postal Request
Sending a letter is another method for making a request.
Business organizations with the luxury of time can submit their 147c letter requests via regular mail. However, you may have to wait six weeks to receive the form. The IRS may use either fax or regular mail to notify a designated business contact.
What Do I Need To Know To Acquire a 147c Letter?
An IRS 147c letter can be obtained by answering security questions. Having several papers ready is also essential. The papers are:
After you've gone through all the hoops to verify your identity, the IRS will either mail you a physical card with the number on it or provide it to you over the phone.
Is it Necessary to Request a 147c Letter, and If Not, What Are the Other Options?
A 147c letter is not always necessary. However, there are a few places you may seek your EIN before phoning the IRS to ask for a 147c letter.
Find the EIN application verification you receive from the IRS.
Get in touch with the relevant authorities in the state or municipality where your license application was submitted.
Try contacting the banks and credit unions where you've used your EIN to create accounts or apply for loans.
Check the records for any tax returns that were submitted using your EIN.
