CPA letter of good standing: which document is wanted?
By Arthur Teboul, DokuTrak · Published
In brief
A CPA letter of good standing usually means a state board’s verification of a CPA’s license, a state tax agency’s compliance letter, or a Secretary of State certificate of status (California Board of Accountancy, Authorization for the Release of CBA Record(s)) (North Carolina Department of Revenue: Letter of Good Standing). A CPA can add a facts-only letter, but cannot certify a client’s good standing.
The letter: Reply to a request for a “CPA letter of good standing”
Send this to whoever asked a client (or you) for a letter of good standing. It names the three documents, asks which one is needed, and offers a facts-only letter as a supplement once the client consents.
- WordEdit the bracketed parts and put it on your letterhead.Free, with your email
- PDFRead-only copy, to print or keep on file.Free, no email
[Firm name] [Date] [Requester name and organization] Re: Letter of good standing for [Client or licensee name]
Dear [Name],
Your request
Thank you for your request of [date] for a “letter of good standing” for [Client or licensee name]. To send the right document, please tell us which of the following you need.
Option 1: license verification(optional)
If you need to confirm a CPA’s license, the [State] Board of Accountancy issues that record. [Name] will request it, and the board can send it directly to you.
Option 2: state tax good standing(optional)
If you need confirmation that [Client name]’s state tax accounts are in compliance, the [State] Department of Revenue issues that letter on the request of a company officer. We can help [Client name] request it.
Option 3: legal status of the entity(optional)
If you need confirmation that [Client name] exists and is active as a [corporation / LLC], the [State] Secretary of State issues a certificate of good standing or of status.
What our firm can add
With [Client name]’s written consent, we can confirm facts from our records, such as the federal returns we prepared for [years] and the dates they were filed. We cannot certify that a business is in good standing or has no tax liabilities.
Next step
Please reply with the option you need, and any form or wording your file requires.
Sincerely, [Name], CPA [Firm name] [Phone] | [Email]
Three documents behind one phrase
Ask the requester which one it wants before you do anything. Each comes from a different office. A certificate of status is the Secretary of State’s record that an entity was formed there and is active; states also call it a certificate of good standing or of existence.
| Meaning | Who issues it | Example | Source |
|---|---|---|---|
| Verification of a CPA’s own license | The state board of accountancy | California Board of Accountancy release form | CBA form (California Board of Accountancy, Authorization for the Release of CBA Record(s)) |
| Tax good standing of a business | The state revenue department | North Carolina letter of good standing | NCDOR (North Carolina Department of Revenue: Letter of Good Standing) |
| Legal status of an entity | The Secretary of State where it was formed | Certificate of good standing or of status | Your state’s filing office |
For a CPA’s own license
A license certification is the board’s own record of a licensee’s status, sent on the licensee’s signed request. In California, the licensee signs a release form, pays a fee, and has the record mailed to them or to another board or agency (California Board of Accountancy, Authorization for the Release of CBA Record(s)).
Other boards have their own forms and fees. Start on your board’s site, and send the record straight to the requesting board when it allows that.
For a client business’s state tax standing
A tax letter of good standing is a state revenue department’s statement that a business’s tax accounts are in compliance. In North Carolina, any entity with all its tax accounts in good compliance can request one (North Carolina Department of Revenue: Letter of Good Standing).
A fax or mail request there must name the business, give its entity ID or account number, and be signed by a current officer or partner (North Carolina Department of Revenue: Letter of Good Standing).
At the federal level, the IRS has no letter by that name. The closest is the tax compliance report an eligible business can pull in Business Tax Account (IRS: Business Tax Account).
What a CPA can add for a client
You can state facts you know, for example that your firm prepared and filed named federal returns on named dates. Send them only with the client’s written consent (26 CFR 301.7216-3, Disclosure or use permitted only with the taxpayer’s consent).
You should not write that the business “is in good standing” or “has no tax liabilities”. That is assurance on matters you have not examined (The Tax Adviser (AICPA), “Third-party verification requests,” Sept. 2018), and the state documents above exist to answer it. See What is a CPA letter for the general limits.
Questions people ask
How does a CPA get a letter of good standing from a state board?
By signing the board’s release or verification request and paying its fee. In California, the record can go to the CPA or straight to another board (California Board of Accountancy, Authorization for the Release of CBA Record(s)).
Is there an IRS letter of good standing?
Not under that name. An eligible business can get a tax compliance report from Business Tax Account instead (IRS: Business Tax Account).
Can my CPA write that my business is in good standing?
A CPA can state facts, such as which returns were filed, with your consent (26 CFR 301.7216-3, Disclosure or use permitted only with the taxpayer’s consent). The status itself comes from your state.
Sources
- California Board of Accountancy, Authorization for the Release of CBA Record(s): A licensee signs this form, with a fee, to have the board send license certifications to the licensee or to another board or agency.
- North Carolina Department of Revenue: Letter of Good Standing: Any entity with all its tax accounts in compliance can request a letter of good standing; a fax or mail request is signed by a current officer or partner.
- IRS: Business Tax Account: Business Tax Account eligibility by entity type and role, the Schedule C and F LLC exclusion, and the EIN verification letter under Tax Records.
- 26 CFR 301.7216-3, Disclosure or use permitted only with the taxpayer’s consent: A consent to disclose names the preparer, the taxpayer, the recipient, the purpose and the information, and is signed and dated by the taxpayer.
- The Tax Adviser (AICPA), “Third-party verification requests,” Sept. 2018: A CPA can confirm facts but must not attest to income accuracy; the AT-C 9105 interpretation bars assurance on solvency or debt service; Section 7216 requires written client consent.
About the author
Arthur Teboul (Founder, DokuTrak) is building DokuTrak after watching professionals lose hours chasing clients for documents over email. Arthur Teboul.
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How this page was made (methodology): it is built from the primary sources listed under Sources, and every rule and figure on it links to the source it comes from. Last updated October 25, 2026. Spotted an error or a rule that changed? Contact us.
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