Essential for TIN Validation

Your Processor Can't Ask The IRS For This Info

If you aren't compliant, your processing company will ask you to contact the IRS and then send the letter to them.

The privacy policies of the IRS prevent them from giving third parties your 147C information, but it is very easy for you to contact the IRS, get the information faxed or mailed to your business address, and then forward this information to the appropriate party.

How to obtain a Confirmation Letter.

147c LetterThe IRS has a business line, which is toll free, at 1-800-829-4933. You need to have the EIN or TIN number number ready so they are able to get the correct information. It is also possible to write in for a request, but this is uncommon since most people don't wish to wait around for the IRS to answer its mail, as they are already subject to a 28% penalty today.

Remember, a 147c letter is there to show you what the IRS already has on file. If this information is incorrect, or the business entity name in the IRS file is wrong, it is up to you to get this information fixed, or change the name of your business everywhere else to match the IRS, which is not recommended since you will be getting information requests for years about alternate DBA names for your business.

What's an EIN Number?

Unless you are running a Schedule C company under your social security number, you should have an Employer Identification Number (EIN) that is used for tax purposes by the IRS. It is essentially a social security number for your business. It is important to use your Federal EIN number since state EINs may use a modified or appended version of this number. In regards to the 147c letter, it is important for you to exactly match the number found on you paperwork and merchant statements to what the IRS has on file. A small transposition in numbers could mean that your income is being reported to another company, or another company's information is wrongly being attributed to your income, and that can take a while to sort out! A lot of people who buy companies from business brokers, family members, and through acquisitions fail to update the EIN and entity name to their new company. For years, this was simply ignored or not noticed, but now a mismatch of TIN numbers comes with a big bite out of your income. The importance of verifying 147c letter information with 1099-k form data cannot be underestimated.