What is the purpose of IRS CP-575?
CP-575 provides confirmation that the IRS has granted you an EIN (Employer Identification Number). The letter establishes your EIN and contains important tax-filing information.
What is an EIN?
Your EIN is a nine-digit number that serves as a unique identifier for your business. It is sometimes called a FEIN (Federal Employer Identification Number). Unofficially, people refer to the number as a tax ID because the number is needed to file your business’s federal payroll taxes. Much like an individual’s social security number, your EIN is also used by financial institutions, credit reporting agencies and other government agencies, organizations and institutions to identify your business.
How do I receive Form CP-575?
IRS CP-575 is automatically generated after you apply for an EIN. You don’t need to fill out a separate form to receive the letter.
The quickest way to apply for an EIN is to use the IRS online assistance tool. The system asks you a series of questions, including your name and social security number. After verifying your identity, the tool automatically assigns you an EIN and displays it on the screen.
If you prefer to apply by mail, complete Form SS-4. Once the IRS receives and processes the form, it will mail you a CP-575 IRS letter.
The parts of Form CP-575
IRS CP-575 contains the following parts:
- Your official business address, which you need to use exactly as written when filing your taxes
- Automatically generated summary that states the date of your notice, your EIN, the IRS contact phone number and information about the form you completed to receive the letter
- An explanation of the importance of using the number accurately
- Various tax information
Form CP-575 often provides a list of other IRS forms that you may need to complete and the deadlines for filing them, such as:
- Form 940 (Employer’s Annual Federal Unemployment Tax Return)
- Form 941 (Employer’s Quarterly Federal Tax Return)
- Form 1120 (U.S. Corporations Income Tax Return)
Why is my CP-575 important?
You will need to know your EIN to:
- Open bank accounts
- Establish merchant accounts for credit card processing
- Check your business credit report
- Apply for business loans, credit cards and lines of credit
- Hire and pay employees
IRS CP-575 serves as proof of your EIN. You may be asked by a financial institution to present the letter.
Do I need to wait for my CP-575 to use my EIN?
If you apply for your EIN online, your new tax ID number is available for use immediately. You don’t need to wait for the letter to begin referring to it, but keep in mind that you may need to present the letter as proof when trying to perform some tasks.
Is CP-575 the only form I need to pay my taxes?
Form CP-575 provides the number needed to file your federal employer payroll taxes, but depending on where your business is based, you may need to use a different number to file state and local taxes. Check with your state’s department of revenue for further guidance on whether you need a state tax ID number.
Safeguarding your CP-575
Identity theft doesn’t just impact individuals. Businesses can become victims too. Protecting your EIN is as important as safeguarding your social security number. Ensure that you store Form CP-575 in a safe place, such as a fire-resistant, locking documents box or file cabinet.
What do I do if I lose my CP-575?
Unfortunately, there’s no way to generate a replacement CP-575 IRS letter. If you misplaced the form, call the Business & Specialty Tax Line at 800-829-4933 for assistance. A representative will verify your identity, look up your number and then send you Form 147-C. Like IRS CP-575, the form details your business name, business filing address and EIN.
