An HR Glossary for HR Terms
Glossary of Human Resources Management and Employee Benefit Terms
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 new 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 that the business will be required to file. In many of these cases, all you need to provide is the number itself—but some organizations insist on seeing an original government document that proves the number is yours. That’s when your CP 575 letter is essential.
EIN Confirmation Letter vs. CP 575
The EIN Confirmation Letter and CP 575 are synonymous terms for the same document.
The EIN Confirmation Letter is also known as the CP 575 Notice. This letter is issued by the IRS when an entity applies for an Employer Identification Number and the application is approved. An EIN is a unique nine-digit number assigned to businesses for tax identification purposes. The EIN Confirmation Letter, officially known by the government as the CP 575 form, confirms the successful registration of the entity with the IRS and provides the official EIN assigned to it.
EIN Meaning and Definition
An EIN is a nine-digit number the IRS uses to identify a business for tax purposes, much like a Social Security number identifies an individual business.
Some reasons to obtain an EIN include:
- Separation of Business and Personal Finances: For sole proprietors or new companies, an EIN allows you to keep your personal and business finances separate. This separation simplifies accounting and helps maintain accurate records.
- Hiring Employees: If you plan to hire employees, you need an EIN. It is required for reporting employment taxes, withholding taxes, 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 easier.
- 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.
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How to Get an EIN Letter From the IRS
- Determine your eligibility to apply for an EIN.
- Your business must be located in the US
- You must have a valid taxpayer identification number
- Apply for an EIN by submitting 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 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 cannot 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 of the same purposes as a CP 575.
To make this request, call the IRS at 1-800-829-4933.
» Learn More: What Is a 147c Letter?
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