A CPA letter is generally a professional document prepared by a Certified Public Accountant (CPA) to confirm, explain, or communicate specific financial, tax, or business information. However, there is no single standardized CPA letter that applies to every situation across the United States.

The information required can vary based on why the letter is needed, who is requesting it, the type of information being confirmed, and the CPA's professional relationship with the client.

Whether you are self-employed, applying for financing, operating a business, or responding to a third-party documentation request, understanding the basic requirements can help you obtain the right letter without unnecessary delays.

What Is a CPA Letter?

A CPA letter is a formal written statement prepared by a Certified Public Accountant for a specific purpose.

Depending on the circumstances, the letter may confirm information relating to a person's income, business activities, tax filings, financial records, or other accounting matters.

For example, a CPA letter may be requested in connection with:

• Income verification

• Mortgage or loan applications

• Self-employment documentation

• Business ownership

• Financial applications

• Business transactions

• Tax-related matters

• Other situations where professional accounting confirmation is requested

The CPA should only include information that can be appropriately supported by the records reviewed or services performed.

Are There Standard CPA Letter Requirements in the USA?

There is no single federal template or universal set of CPA letter requirements for every type of CPA letter.

This is important because the term "CPA letter" can describe different types of professional correspondence.

The requirements may depend on:

1. The purpose of the letter

2. The organization requesting it

3. The information that needs to be confirmed

4. The records available to the CPA

5. The CPA's professional relationship with the client

6. Applicable professional and state requirements

CPA licenses in the United States are issued by state boards of accountancy rather than through one national CPA licensing authority. Requirements for CPA licensure and practice can therefore vary by jurisdiction.

For this reason, it is important to identify the exact purpose of the letter before preparing it.

What Should a CPA Letter Include?

Although the exact contents can vary, a professional CPA letter will commonly contain several basic elements.

1. CPA or Accounting Firm Information

The letter should clearly identify the CPA or accounting firm preparing it.

This may include:

• CPA's name

• Firm name

• Business address

• Telephone number

• Email address

• Other relevant professional contact information

The purpose is to allow the recipient to identify and, where appropriate, contact the accounting professional.

2. Date of the Letter

A CPA letter should generally include the date it was prepared or issued.

This is particularly important when the recipient requires current financial information or has established a specific documentation deadline.

3. Client Information

The letter should identify the individual or business to whom the information relates.

Depending on the circumstances, this could include:

• Full legal name

• Business name

• Address

• Relevant tax year or reporting period

The CPA should make sure that identifying information is accurate.

4. Purpose of the Letter

The letter should explain why it is being prepared.

For example, the purpose could involve:

• Income verification

• Business verification

• Loan documentation

• Financial information

• Tax documentation

• Business ownership

Clearly stating the purpose helps the recipient understand what the CPA is confirming.

5. Relevant Financial Information

If the purpose involves income or financial information, the CPA letter may identify the relevant figures or information supported by appropriate records.

The period covered should also be clear.

For example, a letter might address information for a particular tax year or a specified period of business activity.

The exact information should be based on the requesting party's requirements and what the CPA can appropriately support.

6. CPA's Signature and Credentials

A formal CPA letter should identify the professional preparing the document.

The letter may include the CPA's:

• Name

• CPA designation

• Signature

• Firm information

• Professional contact information

Because CPA licensing is administered through state boards, anyone specifically requesting a letter from a CPA should make sure the person signing the document meets the applicable requirement.

What Documents Does a CPA Need to Prepare a Letter?

The documents required will depend on what the CPA is being asked to verify.

Common supporting documents may include:

• Federal income tax returns

• State tax returns

• W-2 forms

• 1099 forms

• Profit and loss statements

• Balance sheets

• General ledgers

• Bank statements

• Payroll records

• Business formation documents

• Accounting records

• Other financial documentation

For example, if a self-employed person needs a letter relating to business income, the CPA may need to review tax returns and business accounting records before determining what information can appropriately be included.

The more specific the request, the easier it may be for the CPA to determine which records are relevant.

CPA Letter Requirements for Income Verification

One of the most common reasons people seek a CPA letter is to document income.

Self-employed individuals may be asked to provide additional documentation because they do not receive a traditional employee paycheck.

A CPA letter for income-related purposes may potentially address information such as:

• Business name

• Nature of the business

• Self-employment status

• Income information

• Relevant reporting period

• Tax return information

• Other information supported by the CPA's records

However, a CPA letter does not automatically replace the documentation required by a lender or other organization.

For certain lending situations, an organization may instead request tax transcripts or other official documentation. The IRS's Income Verification Express Service, for example, allows authorized lenders to obtain certain tax records with the taxpayer's consent.

Always ask the requesting organization exactly what documentation it will accept.

CPA Letter Requirements for Self-Employed Individuals

Self-employed taxpayers frequently encounter requests for professional financial documentation.

If you are a freelancer, independent contractor, business owner, or other self-employed individual, a CPA letter may be requested to help document your financial circumstances.

Depending on the purpose, your CPA may need information such as:

• Business income

• Business expenses

• Tax filings

• Business structure

• Accounting records

• Length of business operation

• Current financial information

A CPA should not simply provide an unsupported income figure. Information included in the letter should be consistent with the records available and the CPA's professional knowledge of the client.

CPA Letter Requirements for Businesses

Businesses may also need CPA letters for financial or commercial purposes.

A business CPA letter could potentially address matters such as:

• Business ownership

• Business operations

• Financial information

• Tax filing history

• Accounting records

• Revenue information

• Business structure

The specific requirements will depend on the recipient.

For example, a bank may request different information from what a potential business partner or attorney requires.

Businesses should therefore obtain the recipient's written requirements whenever possible before asking their CPA to prepare the letter.

Does a CPA Letter Need to Be Notarized?

Not necessarily.

There is no universal U.S. requirement that every CPA letter must be notarized.

Whether notarization is required depends on the organization requesting the letter and the specific purpose of the document.

If the recipient specifically requires notarization, the CPA should be informed before preparing the final document.

Do not assume that notarization is necessary unless the requesting organization or applicable rules say so.

Does a CPA Letter Need a CPA License Number?

This depends on the purpose and requirements of the recipient.

A professional letter should clearly identify the CPA who prepared and signed it. If the recipient specifically asks for a license number or other credential information, the CPA should follow that requirement.

Because CPA licensing is handled by individual state boards, the applicable licensing details can vary by jurisdiction.

Can an Accountant Who Is Not a CPA Write the Letter?

It depends on what the recipient is requesting.

An accountant who is not a licensed CPA may be able to prepare certain types of accounting correspondence. However, if an organization specifically requires a CPA letter, it may expect the document to be prepared and signed by a licensed CPA.

There is no national CPA license in the United States. CPA licenses are issued by state boards of accountancy, so the professional's licensing status should be verified when it matters for the request.

How to Request a CPA Letter

If you need a CPA letter, following a few steps can make the process easier.

Step 1: Ask the Recipient for Requirements

Before contacting your CPA, find out exactly what the organization wants.

Ask:

• What information must the letter include?

• Who should the letter be addressed to?

• What period should it cover?

• Does the letter need to be signed?

• Is a CPA license number required?

• Does the letter need to be notarized?

• Are supporting documents required?

• Is there a specific template?

Written requirements are especially helpful.

Step 2: Give the Requirements to Your CPA

Provide your CPA with the organization's request.

This allows the CPA to determine whether the requested information can appropriately be provided and what records may need to be reviewed.

Step 3: Provide Supporting Records

Your CPA may request tax returns, financial statements, accounting records, or other documents.

Respond promptly to requests for additional information to avoid unnecessary delays.

Step 4: Review the Completed Letter

Before submitting the letter, verify:

• Your name or business name

• Dates

• Tax years

• Financial figures

• Recipient information

• Purpose of the letter

If anything is incorrect, ask your CPA to review it before you submit the document.

How Long Does It Take to Get a CPA Letter?

There is no standard turnaround time.

A straightforward request may take less time when your CPA already has the necessary records. More complicated requests can take longer if additional financial information needs to be reviewed.

If you have a deadline, tell your CPA about it when you make the request.

It is best not to wait until the last minute, particularly if the letter requires review of several years of financial records.

How Much Does a CPA Letter Cost?

CPA letter fees vary by firm and by the complexity of the request.

Factors that may affect the cost include:

• Amount of records that need to be reviewed

• Complexity of the request

• Type of letter

• Whether you are an existing client

• Amount of professional analysis required

• Urgency of the request

A simple letter based on existing records may require less work than a request involving detailed financial analysis.

Ask the CPA about the fee before authorizing the work.

CPA Letter vs. IRS Letter

A CPA letter should not be confused with an IRS letter or notice.

An IRS letter is official correspondence issued by the Internal Revenue Service. Depending on the notice, the IRS may request information, ask a taxpayer to verify information, or explain an issue involving a tax return.

For example, IRS Letter 12C can request additional information needed to process an individual income tax return, including verification of income, withholding, credits, or taxpayer identification information.

A CPA letter, on the other hand, is prepared by a private accounting professional.

If you receive an IRS notice, read the notice carefully and follow its specific instructions. Do not assume that a CPA letter will automatically satisfy an IRS request.

Common Mistakes When Requesting a CPA Letter

Not Asking the Recipient for Exact Requirements

The biggest mistake is requesting a generic CPA letter without knowing what the recipient actually needs.

Using the Wrong Documentation

A CPA letter may not replace tax returns, transcripts, bank statements, or other documents when those items are specifically required.

Providing Incomplete Records

Your CPA may be unable to confirm information if the underlying records are incomplete.

Waiting Until the Deadline

CPA firms may need time to review records and prepare professional correspondence.

Asking for Unsupported Statements

A CPA should not be expected to verify information that cannot be supported by appropriate records.

Confusing a CPA Letter With an IRS Document

An IRS notice is issued by the IRS and may have specific response requirements. A CPA letter is a separate professional document.

CPA Letter Requirements Checklist

Before submitting your CPA letter, use this checklist:

• Confirm why the CPA letter is required

• Obtain the recipient's specific requirements

• Confirm the required date or reporting period

• Provide your CPA with the necessary records

• Confirm the client's name and business information

• Make sure the purpose of the letter is clear

• Verify financial information

• Confirm the CPA's name and credentials

• Check whether a signature is required

• Ask whether notarization is required

• Confirm whether a CPA license number is required

• Review the final letter before submission

Frequently Asked Questions About CPA Letter Requirements

What are the CPA letter requirements in the USA?

There is no single nationwide requirement for every CPA letter. Requirements depend on the purpose of the letter, the recipient, the information being confirmed, and applicable professional and state requirements.

Is there a standard CPA letter template?

Not one universal template. A CPA letter should be prepared according to the specific purpose and requirements of the requesting organization.

Can a CPA letter verify income?

A CPA may be able to provide income-related information when it is supported by appropriate records and falls within the CPA's professional relationship and services. The organization requesting the letter determines whether it will accept it.

Does every CPA letter need to be notarized?

No. Notarization is not universally required. It may be required for a particular transaction or by a specific organization.

Can a CPA letter replace tax returns?

Usually not. A CPA letter and a tax return serve different purposes. If a recipient specifically requests a tax return, ask whether it will accept a CPA letter as additional documentation.

Does the CPA need to be licensed in the United States?

If the recipient specifically requires a CPA, the professional should hold the appropriate CPA credential. CPA licensing in the United States is administered by state boards of accountancy rather than through a single national license.

How quickly can I get a CPA letter?

The timeline varies according to the complexity of the request and how quickly the necessary records can be reviewed. Contact your CPA as early as possible if you have a fixed deadline.

Final Thoughts

Understanding CPA letter requirements can help individuals and businesses avoid unnecessary delays when a third party requests professional financial documentation.

The most important point is that there is no one-size-fits-all CPA letter in the United States. The appropriate format and information depend on the purpose of the letter, the recipient's requirements, the records available, and the CPA's professional responsibilities.