Employee Benefits Report: Payroll
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Completing paperwork is necessary for a business to run smoothly and efficiently. And one of the primary forms companies utilize is the Employer Identification Number (EIN).
However, if the company’s EIN is somehow lost, the company must ask for a 147c letter to replace the original EIN. The IRS doesn’t provide access to the 147c letter information online for security purposes.
The Employer Identification Number(EIN) is the corporate and business equivalent of a social security number. Any person, company, or entity that pays employees withholding taxes is issued an EIN.
Hence, the 147c letter, acquired from the Internal Revenue Service (IRS), is used to request a replacement for the company’s EIN or allow a third party to verify the EIN with their permission.
If a company misplaces its EIN confirmation letter, it cannot obtain another official copy. Instead, the IRS sends a 147c letter to replace the misplaced or lost EIN confirmation letter.
Why is 147c Important?
With the 147c letter, business owners can correct errors and mismatches between the company’s business name and the corresponding EIN. Banks require official confirmation of the company’s EIN before opening a bank account or enrolling the company in the bank’s programs.
A challenge can arise when businesses set up multiple corporate entities, and banking information can sometimes be underreported. Therefore, when total receipts don’t match the company’s reported figures, the IRS can withhold 28% of credit card revenue.
The errors corrected with a 147c letter are sometimes minimal.
A mismatch between the IRS’s records and those of a credit card processing company can be caused by as little as an added or omitted period, comma, or a misspelling.
Therefore, the 147c letter is used to cross-reference the Taxpayer Identification Number (TIN) with the company name. TIN is used by the credit card processing company to allow business owners to correct any errors on time.
How to Request an IRS 147c Letter?
A person can contact the IRS and request a 147c letter by phone, mail, or in writing.
1) Request by Phone
To obtain the company’s 147c letter, a person must call the IRS at 1-800-829-4933. Before contacting the IRS, it is crucial to gather the following information:
- Individual Taxpayer Identification Number (ITIN)
- Social Security Number (SSN)
- Current business address
- EIN number
- The full company’s name
2) Request by Mail
There is also an alternative option to send a request by mail.
If the company has the time, a request for a 147c letter can be filed by mail. However, it can take four to six weeks to get the form. The IRS can send the notice to an authorized business representative via fax or mail.
What are the Alternatives to Requesting a 147c Letter?
There are two alternative options to get a 147c letter:
- Submit a request in writing – visit the IRS website to get the address and contact information.
- Make an appointment by calling the number of an office in your area. Here’s a link to an office locator that points to the nearest IRS.
Who can Request a 147c Letter?
The IRS can only accept requests from an authorized company representative or a person authorized with a power of attorney.
1) Company Representative
The IRS can only allow access to the information in the 147c letter to the company’s owner or a formal representative.
2) Power of Attorney
The second way to get the 147c letter is by a power of attorney. The company can appoint a person with a power of attorney, who must submit it to the IRS.
How does the IRS send the 147c Letter?
The procedure has several steps:
- The IRS employee requests the company’s EIN and confirms whether the person receiving it is secure and the only one receiving the fax.
- After confirmation has been given, the representative places the person on hold for approximately 35 minutes while the fax is sent.
- When the company’s representative answers and provides confirmation, the 147c letter is received.
The IRS will only send the 147c letter via mail or fax. When faxing, a person can use either a traditional fax machine or a digital fax machine. The IRS does not send the 147C verification letter via email for security reasons.
On a Final Note
For more helpful information on the 147c letter, please contact the IRS.
Written by shortlister editorial team
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