CP 575 Form
What Is a CP 575 Form?
In the US, the Internal Revenue Service (IRS) issues a CP 575 EIN Confirmation Letter to confirm the unique Employer Identification Number (EIN) issued to a business. The EIN provided in a CP 575 letter is required to file your company’s taxes, open a business bank account, and apply for a business credit card, loan, or payroll processing.
The CP 575 form also provides information about tax forms the business will be required to file. Often, all you need to provide is the number itself—but the CP 575 proves the number is yours.
EIN Confirmation Letter vs. CP 575
The EIN Confirmation Letter and CP 575, or CP 575 Notice, are the same document. This letter is issued by the IRS when an entity applies for an EIN and the application is approved.
An EIN is a unique nine-digit number assigned to businesses for tax identification purposes. The CP 575 letter, then, confirms the successful registration of the entity with the IRS and provides the official EIN assigned to it.
EIN Meaning and Definition
An organization’s EIN is the nine-digit number the IRS uses to identify a business for tax purposes, much like a Social Security Number (SSN) identifies an individual.
Why Do I Need an EIN?
Some reasons to obtain an EIN include:
- Separation of Business and Personal Finances: For sole proprietors or small businesses, an EIN allows you to keep your personal and business finances separate. This separation simplifies accounting and helps maintain accurate records.
- Privacy Protection: Using an EIN instead of your SSN for business-related activities can help protect your personal information. By limiting the exposure of your SSN, you reduce the risk of identity theft and potential fraudulent activities on your business account.
- Hiring Employees: If you plan to hire employees, you will need an EIN letter. It’s required for reporting payroll taxes, withholdings, and issuing W-2 forms to your employees.
- Business Loans and Credit: With an EIN from your CP 575 form, you can establish a separate credit profile for your company. This enables you to build a business credit history and makes applying for business loans, credit cards, or other financing options more straightforward.
- You are a Required Entity: Certain entities are required to have an EIN. These include: employers, sole proprietors, corporations, partnerships, non-profit associations, trusts, estates of decedents, government agencies, certain individuals, and more.
How to Get an EIN Letter From the IRS
To get your EIN, follow the steps below:
- Determine your eligibility to apply for an EIN.
- Your business must be located in the US
- You must have a valid taxpayer identification number
- Submit IRS Form SS-4 online.
- Once the application has been validated, you will get a digital copy of your EIN confirmation notice. You can download and print this EIN letter as needed.
Can a CP 575 Letter Be Replaced?
No, the IRS will not replace a paper CP 575 letter. It is a one-time, computer-generated document and can’t be replicated.
However, if you have misplaced it and you need an original paper document to confirm your EIN, you can request EIN Verification Letter 147c, another official IRS letter that can generally be used for all the same purposes as a CP 575.