What Is a CP-575 Letter and Do I Need One?

What is a CP-575 Letter?

A CP-575 is a notice received via mail from the Internal Revenue Service (IRS) that confirms an Employer Identification Number (EIN) issued to a new business. This letter includes:

• The EIN (a nine-digit tax ID number used for filing federal payroll taxes)
• The business name 
• The official filing address for your business  
• A list of federal tax forms that your business is required to file (i.e. Form941, Form 940, and Form 1120)
• The due dates for those forms 

Purpose of a CP-575 Letter

The letter serves as proof of your EIN and all other information listed above. This letter is required to open business bank accounts/credit cards, set up payroll with a payroll provider, correspond with particular government agencies, and get a Medicare provider. 

Do I need a CP-575 Letter?

If you run a business with employees, or if you plan to hire employees in the near future, then you will need a CP-575. The IRS offers a brief test that you can take if you are unsure whether or not to apply. These questions include:

Do you have employees?

Do you operate your business as a corporation or a partnership?

Do you file any of these tax returns: Employment, Excise, or Alcohol, Tobacco and Firearms?

Do you withhold taxes on income, other than wages, paid to a non-resident alien?

Do you have a Keogh plan?

CP-575s aren’t necessary for sole proprietors who opt to use their social security number for business operations. 

How to Receive Your CP-575 

If you answered “yes” to any of the questions above, then you will need to apply for an EIN using the Application for Employer Identification Number:  Form SS-4. This form can be filled out online, or it can be printed out and either mailed or faxed to the IRS. Once approved, the CP-575 letter will be sent to the address listed on the form within four-six weeks. 

Additional Resources 

You can stay informed, educated, and up to date with important HR topics using BerniePortal’s comprehensive resources:

• BernieU—free online HR courses, approved for SHRM and HRCI recertification credit
• BerniePortal Blog—a one-stop shop for HR industry news
• HR Glossary—featuring the most common HR terms, acronyms, and compliance
• Resource Library—essential guides covering a comprehensive list of HR topics
• HR Party of One—our popular YouTube series and podcast, covering emerging HR trends and enduring HR topics