What does the IRS verification letter provide evidence of?

The IRS verification letter specifically serves as a formal document to verify an individual's Individual Taxpayer Identification Number (ITIN). This letter confirms that the IRS has processed the ITIN application and that the number is legitimate, which is crucial for individuals who are not eligible for a Social Security Number. The verification provides assurance to institutions and entities requiring this information that the tax identification number has been authenticated by the IRS, which can be particularly important in matters related to tax filings and certain financial transactions.

In contrast, while proof of financial stability, documentation of income, and eligibility for tax credits are important aspects of an individual's financial status or tax situation, they are not the primary purpose of the IRS verification letter.