What a CPA does when writing a CPA letter
A CPA letter is a short, factual letter on the CPA firm’s letterhead. It usually confirms that the CPA prepared your returns, how long you have reported self-employment income, and the income shown on filed returns, and it names the documents the CPA reviewed.
It does not promise future income, profitability or ability to repay. For the full detail on wording and what each requester accepts, see our CPA letter guide. This page is about finding the right CPA to write it.
Related letters follow the same rule of confirming only what the CPA has reviewed: an accredited investor verification letter and trading results verification.
How to verify a CPA’s license before you request a letter
- Search the CPA and the firm on NASBA CPAverify, a free lookup of license status from participating state boards.
- For states that do not participate, use the board listed in NASBA’s state board directory.
- Make sure the letter will be signed by a licensed CPA and issued on a CPA firm’s letterhead. Lenders may verify the license themselves.
Questions to ask a CPA before hiring them for a letter
- What exactly will the letter say, and what will it not say?
- Did you prepare my returns? If not, what do you need to review?
- Can you review the wording my lender or landlord requested before we start?
- What is the turnaround once you have my documents?
- Will you speak with the lender if they call to confirm the letter?
- What consent do I need to sign before you share my tax information?
Free checklist
What a Lender Can and Can’t Ask a CPA to Confirm
Red flags
- A CPA willing to “confirm” income they have not seen. The letter should name what was reviewed.
- Templates that assure ability to repay. AICPA attestation standards prohibit assurance that a business is or will stay solvent.
- A “CPA letter” from someone who is not a CPA. Check the signer on CPAverify.
- Signing lender-drafted language without review. A careful CPA edits the wording to facts.
- No consent form. Federal law (IRC section 7216) restricts tax preparers from disclosing return information without your consent.
Why clients choose Your Virtual CPA
- We are a licensed CPA firm; our letters are signed by a licensed CPA.
- We work virtually with self-employed clients nationwide.
- We write CPA letters, accredited investor letters and trading results verification, and prepare financial statements for bank loans and compilations and reviews when a lender needs more.
- Transparent, fair fees quoted upfront, in writing.
- A free initial consultation.
How it works with us
Best for: sole proprietors, 1099 contractors and business owners who need a letter for a lender, landlord or agency.
- Free initial consultation. Send us the request or wording and tell us who is asking.
- Fees quoted upfront, in writing. Transparent, fair fees before any work starts.
- Consent and documents. You sign a consent to disclose and send returns or transcripts, bank statements and current books.
- Review. We review the records and agree the wording with you.
- Letter. We issue the letter on our letterhead, stating the facts, the documents reviewed and the limits of our work.
CPA letter vs IRS transcript vs P&L vs reviewed financial statements
| CPA letter | IRS transcript (Form 4506-C) | Profit and loss statement | Reviewed financial statements | |
|---|---|---|---|---|
| Who provides it | Licensed CPA | IRS, requested by the lender with your signed consent | You, your bookkeeper or a CPA | Independent CPA firm |
| What it shows | Facts the CPA knows: returns prepared, self-employment history, income on filed returns | Data from returns as filed with the IRS | Revenue and expenses for a period, often year-to-date | Full statements with limited assurance |
| Level of assurance | None beyond the facts stated | Official IRS record of what was filed | None unless a CPA compiles or reviews it | Limited assurance |
| Can it promise future income? | No | No | No | No |
Expert CPAs. Personal attention.
Need a CPA letter? Send us the request and we'll set up a free initial consultation with a CPA.
Frequently asked questions
Start with the CPA who prepared your returns. If you do not have one, look for a licensed CPA firm that will review your filed returns or IRS transcripts first. Verify the license on CPAverify or the state board, and send the lender’s exact wording before you engage anyone.
Yes, from a licensed CPA who reviews your records remotely. The letter should name the documents reviewed and the limits of the work. Be wary of any service that issues a “CPA letter” without a named, licensed CPA or without looking at your returns.
Lender-drafted letters often ask a CPA to assure future income or ability to repay. AICPA attestation standards prohibit a CPA from giving assurance that a business is or will stay solvent. A CPA can usually rewrite the letter to state the facts they know.
No. In auditing, a comfort letter is a letter auditors give underwriters in a securities offering. When a mortgage lender asks for a “comfort letter,” it usually means a CPA letter confirming self-employment or return preparation. Ask the lender exactly what it needs.
Usually not. Fannie Mae’s Selling Guide generally documents self-employed income with personal tax returns, and sometimes business returns, and lenders commonly verify returns with IRS transcripts using Form 4506-C. A CPA letter supports the file.
Often, yes, after reviewing your filed returns or IRS transcripts. The letter should say what the CPA reviewed. If your books are behind, the CPA may first need to prepare a year-to-date profit and loss statement.
Your Virtual CPA, a licensed CPA firm, writes CPA letters for self-employed clients nationwide, including letters for lenders, landlords and agencies. See our CPA letter page for what the letter can say.
Sources
- Fannie Mae Selling Guide B3-3.2-01, Self-employed borrower documentation
- IRS Form 4506-C, IVES Request for Transcript of Tax Return
- The Tax Adviser (AICPA): Third-party verification requests
- 26 U.S.C. 7216, Disclosure or use of information by preparers of returns
- NASBA: State boards of accountancy
General information as of October 20, 2026. Tax rules change; talk to a CPA about your situation.