In a 506(c) offering, the fund must take reasonable steps to verify accreditation. Typical methods: IRS forms for two years plus a written statement; recent bank, brokerage and credit-report statements; a letter from a CPA, attorney, registered investment adviser or broker-dealer dated within three months; or, per the SEC staff’s March 12, 2025 no-action letter, a minimum investment of at least $200,000 (individuals) or $1,000,000 (entities) with written representations that the investment is not financed by a third party for that purpose.
Ask how documents are transmitted and stored, who sees them, and how long they are kept. Never send tax IDs or statements by ordinary email.
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More on this stage: Deep Dive: How 506(c) Accreditation Verification Works · Deep Dive: Calculating Net Worth Without Your Home · Deep Dive: Talking It Through as a Household
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