A “Sample CPA Letter for Self-Employed” is a document. It verifies your income or self-employment status. You might need it for a loan. Landlords may ask for it. It’s also useful for refinancing or any credit application.
We know these letters can be tricky. Don’t worry, we’ve got you covered. We will share templates and examples. These are easy to adapt for your specific needs.
This article provides sample letters. Use these samples as a starting point. Tailor them to fit your situation perfectly. Make the process simpler and stress-free.
Sample Cpa Letter For Self Employed
[Your Name/CPA Firm Name]
[Your Address]
[City, State, Zip Code]
[Date]
[Recipient Name/Lender Name]
[Recipient Address]
[City, State, Zip Code]
Subject: Verification of Self-Employment Income for [Client Name]
To Whom It May Concern,
This letter is to verify the income of my client, [Client Name], who is self-employed. I have prepared their tax returns for the past [Number] years.
Based on the information provided to me and my professional review of their tax returns, [Client Name]’s income is as follows:
Year: [Year]
Adjusted Gross Income (AGI) from Schedule C: $[Amount]
Year: [Year]
Adjusted Gross Income (AGI) from Schedule C: $[Amount]
Year: [Year]
Adjusted Gross Income (AGI) from Schedule C: $[Amount]
Please note this information is based solely on the tax returns provided by the client and prepared by me. I have not audited or otherwise verified the information independently. This information should be considered in conjunction with other documentation provided by [Client Name].
If you require further clarification, please feel free to contact me.
Sincerely,
[Your Name/CPA Firm Name]
How to Write Sample Cpa Letter For Self Employed
Subject Line: Conveying Purpose with Panache
- Begin with a concise and transparent subject line like “Verification of Self-Employment Income – [Your Name]”.
- Clarity is paramount; steer clear of ambiguity that might obfuscate the letter’s intent.
- Consider adding the tax year for enhanced specificity, e.g., “Income Verification for Tax Year 2023 – [Your Name]”.
Salutation: Addressing with Adequacy
- If you know the CPA’s name, use “Dear Mr./Ms. [CPA’s Last Name]”.
- In the absence of a name, a formal “To Whom It May Concern” is permissible, albeit less personalized.
- Maintain a professional decorum; refrain from informal greetings.
Introduction: Setting the Stage Adroitly
- State your full name and that you are self-employed.
- Clearly articulate the letter’s purpose: requesting verification of your income.
- For example: “I, [Your Full Name], am writing to request a formal verification of my income as a self-employed individual for the purpose of [State the purpose, e.g., loan application, mortgage approval]”.
Body Paragraph 1: Detailing Income Data
- Provide a synopsis of your business, including its name and nature (e.g., freelance writer, independent consultant).
- Specify the period for which you need income verification (e.g., calendar year 2023, specific months).
- Present your gross income and net profit for the stated period; precision is crucial.
- Proffer any pertinent documents you’ve already supplied to the CPA, such as Schedule C or profit and loss statements.
Body Paragraph 2: Underscoring CPA’s Affirmation
- Explicitly request the CPA to verify the income figures you’ve provided.
- Indicate the format in which you’d prefer the verification (e.g., a signed letter, a digital document).
- Mention the recipient of the verification letter (e.g., the lending institution) and their contact details, if known, to expedite the process.
Closing: Concluding with Courtesy
- Use a professional closing phrase such as “Sincerely,” or “Respectfully,”.
- Leave ample space for the CPA’s signature.
- Type your full name beneath the space.
- Include your contact information—phone number and email address—for ease of communication.
Enclosures: Listing Accompanying Documents
- If you are including any supporting documentation (e.g., tax returns, bank statements), list them under an “Enclosures” section.
- This ensures transparency and helps the CPA readily identify the accompanying materials.
- Example: “Enclosures: Copy of 2023 Tax Return, Schedule C”.
Frequently Asked Questions: CPA Letter for Self-Employed Individuals
This section addresses common inquiries regarding CPA letters for self-employed individuals, clarifying their purpose and usage.
Understanding the specifics of these letters is crucial for securing loans, leases, and other financial arrangements.
What is a CPA letter for a self-employed individual?
A CPA letter for a self-employed individual is a formal document prepared and signed by a Certified Public Accountant (CPA) that verifies the income and financial standing of a self-employed person. It’s often used to provide assurance to lenders, landlords, or other parties requiring proof of income.
Why would a self-employed person need a CPA letter?
Self-employed individuals often need CPA letters to substantiate their income when applying for loans (mortgages, auto loans, etc.), leases, or other financial products. Traditional income verification methods, such as pay stubs, aren’t applicable to self-employed individuals, making a CPA letter a reliable alternative.
What information is typically included in a CPA letter?
A CPA letter usually includes the CPA’s contact information, the client’s name and business name (if applicable), the period covered (e.g., tax years), a statement verifying income based on tax returns or other financial records, and a disclaimer clarifying the scope of the CPA’s verification.
How do I obtain a CPA letter if I am self-employed?
To obtain a CPA letter, you need to engage a Certified Public Accountant. Provide the CPA with your relevant financial records, such as tax returns, bank statements, and profit and loss statements. The CPA will review these documents and prepare the letter based on their findings.
How much does a CPA letter typically cost?
The cost of a CPA letter varies depending on the complexity of your financial situation and the CPA’s fees. It can range from a few hundred dollars to several hundred, or more, depending on the time and effort required to verify your income and prepare the letter. Consult with a CPA to get a specific quote.
Related:
Sample Letter To Children In Safe Houses
Sample Letter To Clients From Real Estate Assistant
Sample Letter To Clients About Closing A Business
