There has been an increasing trend of banks, landlords, and/or lenders asking self-employed individuals for letters from a CPA to verify, certify, vouch for, or attempt to estimate the income of the applicant. This is known as an “income verification letter” or “CPA letter.”
Sometimes, the lender or landlord also requests this CPA letter to be notarized (the CPA must sign in front of a notary).
With the right disclaimer, it is possible to both meet the paperwork and compliance needs of the bank while also preserving the integrity of the CPA.
The types of persons being asked for such types of letters include:
- Those paid on 1099
- Persons owning a single-member LLC or other small business
- Self-employed individuals