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

If you’re running a business, especially one with employees, you’ve probably encountered the term CP 575 letter or CP 575 form. But what exactly is it, and why is it important? This notice from the IRS isn’t just a document—it’s the key to ensuring your business is compliant and can operate smoothly.

What Is a CP 575 Letter?

A CP 575 letter is an official 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 legal 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 

Why Is the CP 575 Letter Important?

The CP 575 letter is a crucial document that serves as proof of your EIN. This letter is essential for various business operations, such as opening bank accounts or credit cards under your business name, setting up payroll systems with a provider, and ensuring compliance with government agencies. Additionally, it is often required when registering as a Medicare provider. Without this document, many of these processes can become unnecessarily complicated, potentially causing delays and disruptions in your business activities.

Who Needs 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 Form. 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 Get a CP 575 Letter

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. 

Lost Your CP 575 Letter?

If you’ve lost your CP 575 letter, don’t worry—you can request a replacement by calling the IRS Business & Specialty Tax Line at 800-829-4933. Be prepared to verify your identity and provide business details.

Additional Resources 

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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