One of the tools the IRS uses in its efforts to prevent tax-related identity theft and to confirm that a valid corporate, trust or estate return has been filed is to send a taxpayer (and the responsible party) a Letter 6042C. Taxpayers are required to answer all the questions in the letter and submit the information to the IRS within 30 days from the date of the letter. The IRS will not process a tax return unless the taxpayer responds.
Taxpayers that receive a Letter 6042C must provide the following information:
- Responsible party’s name, title and social security number
- Entity EIN and any associated EINs
- Month and year the EIN was obtained
- Type of entity and forms required to be filed
- Addresses used by the entity within the previous five years
- Whether there were employees or independent contractors and whether information returns were filed
- Type of business
- Signed declaration under penalty of perjury
As the IRS is still digging out from the backlog of paper correspondence received during the government shutdown resulting from the coronavirus pandemic, the IRS requests that taxpayers submit their responses via the fax number provided in the letter rather than by ordinary mail. The standard processing time is about nine weeks.
Should you receive a Letter 6042C, please consult with your advisor for accurate completion.
More information on the Letter 6042C procedure can be found on the IRS website.