Understanding Your CP290 Notice
We're approving your Electing Small Business Trust (ESBT) election.
What you need to do
- Timely file Form 1041
- Include Schedule K-1 reflecting your ownership in the S corporation
- File a paper return with all required schedules
- Keep this notice in your permanent records.
You may want to visit the following webpages:
- S Corporations
- Form 1120S, U.S. Income Tax Return for an S Corporation
- S Corporation Compensation and Medical Insurance Issues
- S Corporation Employees, Shareholders and Corporate Officers
- S Corporation Stock and Debt Basis
- Special Rules for Health Insurance Costs of 2-Percent Shareholder-Employees (IRB 2008-2 Notice 2008-1)
- Publication 542 (03/2012), Corporations
Answers to Common Questions
How do I terminate the ESBT election?
This election can only be terminated by permission of the Commissioner of Internal Revenue. See IR Bulletin 2012-1 (http://www.irs.gov/pub/irs-irbs/irb12-01.pdf) for instructions
Understanding your notice
Your notice may look different from the sample because the information contained in your notice is tailored to your situation.
Notice CP290, Page 1