CPA letter template: facts-only wording a CPA can sign
By Arthur Teboul, DokuTrak · Published
In brief
A usable CPA letter template states only facts the firm knows from its own records, then adds a basis statement, a no-assurance sentence and a use restriction. It is sent after the client signs a consent to disclose (26 CFR 301.7216-3, Disclosure or use permitted only with the taxpayer’s consent), and it never says the income is accurate or that the client can pay (The Tax Adviser (AICPA), “Third-party verification requests,” Sept. 2018).
The letter: CPA verification letter template (facts only)
Edit the bracketed fields from your engagement records. Delete any optional clause you cannot back with your own files. Check the signed consent names this recipient before you send it. Have your professional liability insurer review your standard wording once.
- 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] [Firm address] | [Phone] [Date] [Recipient name] [Recipient address] Re: [Client name], [loan / application / file number]
Dear [Recipient contact name],
Relationship
At the request of our client, [Client name], we confirm that our firm prepared [his / her / their] federal income tax returns for tax years [YYYY] and [YYYY].
Filing(optional)
Those returns were filed with the Internal Revenue Service on [date] and [date].
Self-employment
On those returns, [Client name] reported self-employment income from [business name] on Schedule C [or: reported income from (entity name) on Schedule K-1, showing (X)% (profit / loss / capital share on a partnership K-1, or stock ownership on an S corporation K-1)].
Amounts as reported(optional)
As reported on the [YYYY] return as filed, and without verification by us, net profit from [business name] was $[amount]. [Or, instead of an amount: With (Client name)’s consent, we can send you a copy of the return as filed.]
Duration(optional)
Based on our records, [business name] has reported business activity since at least tax year [YYYY].
Basis
The returns were prepared from information furnished by [Client name]. We did not audit, review or otherwise verify that information.
No assurance
Accordingly, we express no opinion or any other form of assurance on [Client name]’s income, financial condition, solvency or ability to meet any obligation.
Date and updates
This letter speaks as of its date. We have no obligation to update it for events after that date.
Use
This letter is provided solely for [Recipient name]’s use in connection with [purpose] and may not be relied on by anyone else.
Consent
It is sent with the written consent of [Client name] dated [date].
Sincerely, [CPA name], CPA [Title], [Firm name] License: [State] [number]
Each clause, and why it is there
The table lists each part of the template below. Each one either states a fact you hold, or protects you against a reader treating the letter as an attest report. The basis statement is the sentence saying the returns rest on client information you did not audit, such as the figures on a Schedule C (The Tax Adviser (AICPA), “Third-party verification requests,” Sept. 2018).
| Clause | Why it is there |
|---|---|
| Letterhead with license state and number | Lets the recipient check the license with the state board |
| Named addressee and file number | Ties the letter to one recipient and one purpose |
| Relationship and tax years | A fact from your engagement records |
| Filing dates | A fact, if your firm e-filed the returns |
| Income type as reported | A fact from the returns, not a judgment on it |
| Basis statement | Preparers rely on client information under Circular 230 § 10.34 (Journal of Accountancy (AICPA), “Concerns About CPA Letters to Third Parties,” Mar. 2009) |
| No-assurance sentence | Assurance on solvency or debt service is barred by the AT-C 9105 interpretation (The Tax Adviser (AICPA), “Third-party verification requests,” Sept. 2018) |
| No duty to update | Fixes the letter to its date |
| Use restriction | Limits who may rely on it |
| Consent reference | Shows the Section 7216 consent exists (26 CFR 301.7216-3, Disclosure or use permitted only with the taxpayer’s consent) |
| Signature block | Name, title, license |
Wording to leave out
Lender drafts often slip in words that turn a fact into a promise. The AICPA advises against signing a lender-scripted letter that shifts due diligence onto the CPA (Journal of Accountancy (AICPA), “Concerns About CPA Letters to Third Parties,” Mar. 2009).
- “Verified”, “accurate” or “true and correct” about income.
- “Can afford”, “is able to repay” or “is solvent” (The Tax Adviser (AICPA), “Third-party verification requests,” Sept. 2018).
- “The withdrawal will not have a negative impact on the business” (Journal of Accountancy (AICPA), “Concerns About CPA Letters to Third Parties,” Mar. 2009).
- “Income is expected to continue”, or any other projection.
- “To whom it may concern”, when the recipient is known.
The consent that goes with it
A Section 7216 consent is the signed, dated authorization that lets a preparer disclose tax return information to a named recipient for a stated purpose (26 CFR 301.7216-3, Disclosure or use permitted only with the taxpayer’s consent). For an individual return, Rev. Proc. 2013-14 fixes its mandatory statements (Rev. Proc. 2013-14, Internal Revenue Bulletin 2013-3).
Get it signed before the letter goes out. A ready form is on the What is a CPA letter page.
One more check before the first use: the AICPA Journal of Accountancy advises having your errors and omissions insurer review the wording of any such letter your firm will use (Journal of Accountancy (AICPA), “Concerns About CPA Letters to Third Parties,” Mar. 2009).
When the lender sends its own form letter
A lender form letter is a pre-written verification the lender asks the CPA to sign as is. Read it line by line against the list above. Strike any sentence that gives assurance, and sign only what states facts you hold.
If the lender will not accept a marked-up form, offer what the AICPA suggests: copies of the returns, sent with the client’s permission, under a cover note (Journal of Accountancy (AICPA), “Concerns About CPA Letters to Third Parties,” Mar. 2009). Many lenders can work from those, such as a Fannie Mae lender, which accepts signed returns or IRS transcripts (Fannie Mae Selling Guide B3-3.5-01, Underwriting factors and documentation for a self-employed borrower).
Questions people ask
What disclaimer goes at the end of a CPA letter?
A basis statement that the returns rest on client information you did not audit or verify, and a sentence that you give no assurance on income, financial condition or ability to repay (The Tax Adviser (AICPA), “Third-party verification requests,” Sept. 2018).
Does the client have to sign a consent first?
Yes. A preparer may not disclose tax return information without the taxpayer’s signed, dated written consent (26 CFR 301.7216-3, Disclosure or use permitted only with the taxpayer’s consent).
Who should the letter be addressed to?
The named lender, landlord or agency, with its file or loan number. The consent must name that recipient too (26 CFR 301.7216-3, Disclosure or use permitted only with the taxpayer’s consent).
Sources
- 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.
- Journal of Accountancy (AICPA), “Concerns About CPA Letters to Third Parties,” Mar. 2009: Preparers rely on client information under Circular 230 § 10.34, need written client permission, should not sign lender-scripted letters, can send the returns instead, and should have their errors and omissions insurer review any letter wording they use.
- 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.
- Rev. Proc. 2013-14, Internal Revenue Bulletin 2013-3: Sets the mandatory statements, in order, for a Form 1040 filer’s consent to disclose, the one-year default duration, the TIGTA statement, the separate-document rule and, on paper, at least 12-point type with every sheet about that disclosure only.
- Fannie Mae Selling Guide B3-3.5-01, Underwriting factors and documentation for a self-employed borrower: The lender verifies self-employed income with two years of signed returns or IRS transcripts, or one year when the business has existed five years and the borrower has owned 25% or more for five years, and performs its own cash flow analysis when business assets fund the loan.
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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