CPA Verification Letter
A CPA verification letter is a formal document written by a Certified Public Accountant (CPA) to confirm an individual’s financial status, such as income and self-employment details. It serves as an analytical and independently verified statement, examining financial documents like tax returns and bank statements to establish the accuracy and authenticity of the provided financial information. These letters are often required by lenders, landlords, and other financial institutions to assess the financial stability and reliability of individuals, especially self-employed or freelance applicants.
What it is:
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- A formal, signed statement from a CPA.
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- An analytical document that reviews financial records, not just a number provided by the client.
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- A source of credible proof of income for self-employed individuals, contractors, or freelancers.
Why it’s needed:
Mortgage Applications:
Lenders use it to assess a borrower’s ability to repay a mortgage by verifying their income, expenses, and financial health.
Rental Applications:
Landlords use it to ensure self-employed tenants have stable income to cover rent.
Business and Personal Loans:
Financial institutions require it to confirm an individual’s capability to repay loans.
Tax Purposes:
Some individuals may need it to prove income for tax filings or IRS audits.
Immigration/other:
Some visas such as EB2 require a forensic exam associated with the applicant’s income and assertions about being a ‘genius’ or highest caliber/excellence in their field.
What a CPA letter typically includes:
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- Client Information:
Full name, business name (if applicable), address, and contact details.
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- Income Verification:
Details of annual income and income sources over the past two to three years.
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- Financial Review:
An affirmation that the CPA has reviewed the client’s financial documents and tax returns.
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- CPA Credentials:
The CPA’s name, certification, state license number, and contact information.
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- Explanation of Complexities:
If applicable, clear explanations of unique financial circumstances, such as fluctuating income.
CONTACT US TO SEND A CPA VERIFICATION LETTER: 415-793-777 mail@hpaccounting.com